Welcome, welcome! 👍😎

Agree with the above.

The main pros of trust are asset protection and distribution of profits while the main cons are costs, serviceability, waive of negative gearing and land tax from first cent.

The vast majority don’t invest via trust and the vast majority of them fair well without it, but anything can happen so…[Read more]

Welcome, welcome! 👍😎

Agree with the above.

The main pros of trust are asset protection and distribution of profits while the main cons are costs, serviceability, waive of negative gearing and land tax from first cent.

The vast majority don’t invest via trust and the vast majority of them fair well without it, but anything can happen so…[Read more]

Cool! Didn’t know the ATO accepts such valuations. Learned something new today and it’s not even 11am. Thanks!

Probably not 🙁

The valuer can’t know if your parents did a reno (for example) before or after they left the property.

My guess is that your parents are now at the mercy of the ATO 😕

Did anyone give him such an advice? I know it’s wasn’t me 😂😂

If you were indeed referring to my comment, then yes, examining all options is prudent IMHO and selling a lemon (for example) may be a best way forward in some cases, if can’t turn it into lemonade of course 😉

Hey mate,

All good, live and learn and you’ll be (more than) right 👍😎

Just one more comment:

LMI is not necessarily a bad move! Let’s say LMI is 3% and you have only 5%. If you save 5% p/a it will take you 3 more years to get to 20% (this is taking into account that in addition you have the circa 5% purchasing costs).

So, in our example…[Read more]

Hey mate,

Well done for starting so early and thinking so ahead! 👍😎

If 5% was all you had to put into the house, why are you kicking yourself over LMI (which is 2-3% of the purchase price)?

Ideally one would buy a property that has manufactured growth potential instead of the good old ‘buy and hope’ but guess that’s not the case with this…[Read more]

No offence to the RE agent but I wouldn’t count on their estimation of market value more than the valuer’s. RE agents many times state the ‘hope’ price which the market may or may not accept. In short, RE appraisal can be worthless. Lenders rely only on the valuation the valuer does. Even if you guys manage to sell it for $520k, the new valuer…[Read more]

Good points, Benny.

R, a few questions, if I may.

1. Do I understand correctly that because one party wants to sell, you want to buy all other parties out?
2. How many parties are there?
3. Can you service the loan all by yourself?
4. If you had to buy a property for the same price (minus the purchasing costs, say), would you buy this one or…[Read more]

Good points, Benny.

R, a few questions, if I may.

1. Do I understand correctly that because one party wants to sell, you want to buy all other parties out?
2. How many parties are there?
3. Can you service the loan all by yourself?
4. If you had to buy a property for the same price (minus the purchasing costs, say), would you buy this one or…[Read more]

Colin Rice is from Perth (I don’t know how to tag here, sorry).

Sorry, I should have been more clear. I don’t recall the name of the broker that is from Perth but recall a broker saying s/he’s from there. Guess s/he will come online sooner or later 😎

Edit: found him. It’s Colin Rice. Mentioned in post.

Sorry, I should have been more clear. I don’t recall the name of the broker that is from Perth but recall a broker saying s/he’s from there. Guess s/he will come online sooner or later 😎

Sorry, I should have been more clear. I don’t recall the name of the broker that is from Perth but recall a broker here said he’s from there. Guess s/he will come online sooner or later 😎

Generally speaking, I prefer my loans as ‘stand alone’ for maximum flexibility. That said, some lenders provide better terms if you cross with them so in your case, I would probably sit with a great broker and run the numbers in various scenarios. Then you should be able to make an informed decision 👍😎

Hope this helps?

Cheers,
Ethan

Great idea, Benny. Changed my signature now.

I saw that post. Don’t recall who, but I recall a broker here that is from Perth…

Guess he’ll pop in soon enough.

Cheers,
Ethan

Great idea, Benny. Changed my signature now.

I saw that post. Don’t recall who, but I recall a broker here that is from Perth…

Guess he’ll pop in soon enough.

Cheers,
Ethan

Hey mate, my comment wasn’t so much a strategy but more of a warning. If the contract you have with the developer says that you need their approval to on sell, then the developer may not agree, especially if they know that you are not in a position to settle and that the market value at that time is higher than the agreed price.

I guess my…[Read more]

That is a very good point. Personally, I wouldn’t rely on the developer’s approval. If s/he knows that the value is now $240k and there’s a strong demand, why would s/he extend an option to buy at $180k? The smartest move (financially speaking) would be to pocket the deposit from buyer #1, let the option expire and sell at a higher price to buyer #2.