Dan42 wrote:
Malcolm Turnbull has stated that the govt have taken up 2.5 of the 138 recommendations. (Although, I'm not sure how you can take up half of a recommendation)

I think you take the bit that says "My recommendation is that the government should……."  (That's the first half.  Then you fill in the rest with whatever first pops i…[Read more]

new2invest wrote:
We owe about 330k and are on a combined income say 130-160k.

Other thing is on this sort of income you could support way more than $330K anyway.  Not sure how they actually calculate it.  Have a look at a loan calculator and it will probably give you a rough idea.  (Type in loan calculator into google) I'd be talking to a fi…[Read more]

Terryw wrote:
If you want to know the legal aspects of a trust then talk to a lawyer, tax aspects then to your tax advisor.

OK I get it.  Thankyou.  Think I'll see both before we spend too much more.  I just want us to set it up correctly now so we don't regret doing things in a certain way in 5 or 10 years time when kids start leaving ho…[Read more]

new2invest wrote:
Line of Credit – what is it ? And what r the advantages n disadvantages if having such account as an investor? 30k in Equity! Is that enough? If it is where will it be used: land or house? How would the loan structuring works? Cheers New2invest

line of credit (LOC) loan is where bank gives you a loan with a maximum limit…[Read more]

If your PPOR is worth $450K you could borrow up to 80%=$360K.  Less $330K owing, you would have $30K available equity, which you could take out as a line of credit (and then you only pay interest on what you actually use).  That is assuming the bank values your PPOR at $450K.  I have found the bank often seems to undervalue houses, so you might no…[Read more]

Thanks for response TerrywHow can you know if you have reached your guarantor limit?  In that I have gone guarantor for my wife's IP and we have some more $ available to use for further deposits (which until now we were planning to just buy in her name again with me going guarantor for every new loan).  But does it make it more difficult for us g…[Read more]

kong71286 wrote:
From my understanding you have a 'company' that acts as trustee on behalf of your 'family trust' to purchase a 'property', whereby you act as the 'guarantor' and also lend the company the 20% deposit costs.

Hi I want to gatecrash this thread with my own related question.  In the first entry Kong wrote the above.  We have a f…[Read more]

My understanding is that the ATO looks at the purpose of the loan.  In this case it was to buy a IP for person A.  Therefore person A can deduct all the interest on the loan and person B can deduct none.PS I am not an expert, just have asked the same Q of my own accountant lately.

Not an expert but my understanding when I recently asked our accountant the same question is that loan in both names helps you get the loan (rather than one acting as guarantor for the other).  But interest is only deductible to the person in whose name the IP is bought.  Rent also goes all to the owner.So you example person A gets all the rent a…[Read more]

Ally11 wrote:
I have just read rich dad poor dad …….

Just thinking about your situation again.  In that book Robert Kiyosaki lists your own home as a  liability. (because it traps you into paying mortgage year after year ).  But then people get hooked or fall in love with where they live and choose to stay trapped.  Which is where you see…[Read more]

thanks guys.  Only problem I have is that these charge $795 to join up and then 2.5% of purchase price (Less your upfront $795 if you buy, then 2.5% thereafter) .  Isn't there an incentive for them to NOT get the lowest possible price for you then?  They get more if purchase price is more, even though officially they are trying to get it for yo…[Read more]

Hey Blackhotel,give us an update.  Have you found something to swoop on? And what bank did you use?

I am interested in  pos geared places. send me a PM (personal messge) if you want to send details. (To do that click on my icon, then click on send PM)

If you have a house worth $400K  why can't you get 80% of its value ($320K) less the $225 you owe, ie $95K from the bank?  Assuming you could get an IP borrowing at 80% again to avoid mortgage insurance, and assuming the true cost of a house is 105% (purchase price plus 5% buying costs) then your $95K would go towards the extra 25% (over the 80% y…[Read more]

I suggest read Margaret Lomas' book called 20 Must Ask Questions™ For Every Property InvestorIt covers most of it.  You can get it from any bookshop or online

Thanks for your comments Snoopy II and Matt.  I will definitely ask our accountant re the trust side of things. Snoopy the CF+ that you talk about, where you basically negatively gear but then use on paper depreciation deductions to create a CF+ situation.  You sound like you have essentially decided that it is better to invest in higher income e…[Read more]

Woops that last entry didn't come out right.  I was quoting this:

Investor888 wrote:
House Call, that is the dumbest thing I have every heard.  So as a property "invester", haha, you would be prepared to loose money rather than make money.  The ultimate goal of the majority of property investors to find positively geared properties, and ev…[Read more]

House Call, that is the dumbest thing I have every heard.  So as a property "invester", haha, you would be prepared to loose money rather than make money.  The ultimate goal of the majority of property investors to find positively geared properties, and eventually turn negatively geared property into positive (rent increase, etc).[/quote]That's a…[Read more]

Snoopy II wrote:
Positive Cash Flow or CF+ as it is referred to sometimes, is when your rental income plus your tax breaks(maximising your depreciation) is greater than all your outgoings. A high tax bracket and a relatively new, or renovated property may help to make this feasible. does this help?

This touches on my problem.  We have 2…[Read more]

Yes that's what I thought too.  But how many properties are out there getting 12%?