Forum Replies Created
With a LOC you do not have to state the purpose and if you do it is not critical to you getting the LOC.
With the break free you are charged a $375 yearly fee
it is a professional package and may only be available to lenders with higher loan amounts.LOC is used to unlock equity that is usually being wasted and the owner has a lower loan.
I am in this situation I have a loan of $4k but huge equity.
so to unlock the equity an LOC would be required.
Also I do not have a job so servicing a large $250,000 loan is impossible so I would not be able to access another split loan in a professional package.I have seen a product that evens up floors used by a lino tiler when my dad was renovating a house and employed a tiler.
I would recommend laying a Masonite on the floor and then using this product to level the floor.http://www.ehow.com/how_6049919_use-liquid-floor-leveling.html
http://www.lanko.com.au/lanko/images/specification/Levelling%20over%20Timber%20Floors.pdf
I am sure if you ask in the tiling area of Bunnings or the floating floor area of Bunnings you will find a liquid floor leveller
http://www.expol.com.au/ – insulation seen this in Bunnings also
I agree with Terry as the full offset account will have the same effect as paying off the loan but with future flexibility if needed.
(Do not get a partial offset account ! make sure its a full offset account)
In Victoria you would contact consumer affairs.
http://www.consumer.vic.gov.au/ca256eb5000644ce/page/renting?opendocument&1=910-renting~&2=~&3=~
They are more than happy to help Landlords know their responsibilities and rights.May be a similar department in your State.
check your landlord insurance to see if lost rent is covered in this situation also !
Are you thinking of negative gearing through a trust as this requires a hybrid trust and accounting advice on the tax implications.
These can be also know as PIT.
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4328668
Unit Trusts can be difficult to keep control as a person can sell their units to someone else you may not wish to have as part of your trust.
http://www.investorbuddy.com.au/property-trustshttps://www.propertyinvesting.com/forums/property-investing/help-needed/4334219?highlight=trust%2Ctypes
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4333604?highlight=trust%2Ctypes
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4332313?highlight=trust%2Ctypes
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4330678?highlight=trust%2Ctypes
https://www.propertyinvesting.com/forums/property-investing/help-needed/4330355?highlight=trust%2CtypesPlease be also aware of state land tax in some states charge a surcharge tax on trust ownership without any threshold on the surcharge. So if you owned a $1000 land value you are going to pay a trust surcharge land tax on it.
There is a book called trust magic that may be helpful also.
This is going to have a flow on effect.
Employers are going to find it hard to find lower paid employees in city locations .This was happening in Sydney and also in Silicon Valley in the USA.
Especially when you see offers for renting a house in a country town in outback Australia NSW for a dollar a week for 3 years.Mine is a housing commission house. Prefab concrete and steel. Had termite attack but there is no timber in the structural part of house so damage minimal. Value is pretty close to other houses in area I purchased it in in 1995. Long term growth has been 9% p/a averaged over 15 years.
Make sure gas hot water is not in the bathroom but outside as dead tenants do not make happy tenants. plus in victoria they changed the regulations that gas hot water has to be outside house. This was due to a death caused by a blocked flue chimney.
Australian Property investing Magazine in December had an article
of an oz investor having the house trashed three times and having the value of the property drop while she owned it.
Also be careful of existing tax debts on US properties.What you have to think about is risk.
Are you able to hold on to this property in 12 months time if you cannot sell it for a profit.
Are you able to build on it and sell a house and land later f you cannot sell it for a profit .
This is sometimes referred as PLAN BCapital Gains Tax needs to be considered.
Keep records of your costs incurred as your accountant may be able to add them to the cost base later when you sell.
another trick I have read about is to buy from the last stage of land release from the land developer.
Stamp Duty , needs to be considered also
is it a good idea ? it depends on if land value increases but it may be the only way for you to afford to get into the market.
What is your marginal tax rate?
If you have say a 30% tax rate negative gearing will cost you.If say you spend $100 you get back $30 so if you do not achieve capital gain you are $70 out of pocket on every $100 you spend.
If you were positively geared and earned $100 you pay $30 and have $70 in your pocket on every $100 you earn.
That $70 could help pay off your new main residence home loan !You could move into the house you owe very little on and use the equity via a line of credit loan for the deposit on another investment property that you could negatively gear.
If you move into the almost owned house you get capital gains exemption from the time you move in.
time lived in it
time rented
time moved back in
sale point
Capital gains tax = time rented / total time owned * capital gain achieved
if rented it for more than 12 months you get 50% cgt discounthttp://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm
seeMain residence for only part of the time you owned it
If a CGT event happens to a dwelling you acquired on or after 20 September 1985, and that dwelling was not your main residence for the whole time you owned it, you get only a part exemption.
Also if joint ownership splits the gain 50% to each owner .
This is my take on it
A house loan in 1990 of $120,000 cost the owner when interest rates increased by 8% a $182 a week increase.In 2010 a house loan where I live is $800,000 or more
when interest rates increase by 3% this causes a $461 a week increase.in 1992 the recession we had to have Labor Party had interest rates at 18% p/a
A 3 % rate increase today has a more powerful effect than in 1992 due to the much larger loans required.And also the banks increase independently from the RBA due to getting their funds from overseas sources.
It does not need to be stated in the rental agreement.
The tax law is that the rental manager is charging you for a service and as a result the rental manager by Tax law must collect the Goods and Services Tax of 10% of the service charged on behalf of the Tax Office.It would be nice if they had reminded you of the GST additional cost but they don't legally have to,
also a lot of other companies or businesses forget to quote GST and they quote a price exclusive of GST.P.S I didn't vote for the GST ! Also insurance will have a GST.
The worst one is GST on Fuel Excise as this is a TAX on a TAX which by the GST Tax law is not suppose to happen.
But the reason is Fuel excise is regarded as not being a tax by our politicians.use http://www.realestate.com.au
Do a search with the land size option increased on minimum land size to what ever 5 acres is.Welcome to the forum Charles,
This link will give you books you can purchase
http://www.businessmall.com.au/property-investing/property-development.htmlIf you want to do a course in it.
http://www.rookiedeveloper.com.auMaybe you could look at private lenders.
Not a recommendation but look at the link below to see what a private lender looks like
http://www.fussfreefinance.com.au/Also you may be able to get a vendor financed loan via a wrap or rent to buy scheme
Not a recommendation but look at the link below to see what a vendor finance lender looks like
http://www.ownyourhome.com.au/
