So, so far we’ve got

1 – 26 Letters of the Alphabet
2 – 7 Days of the Week
3 – 7 Wonders of the World
4 – 12 Signs of the Zodiac
7 – 13 Stripes in the United States Flag
8 – 18 holes on a golf course
10 – 5 toes on a foot
11 – 90 degrees in a right angle
12 – 3 blind mice (see how they run)
13 – 32 is the Temperature in Degrees Fahreneit (?) at…[Read more]

Sorry Derek[biggrin]. One good thing from school.

Karl and Rita, the $26K would/should be a separate loan to your PPOR loan, but secured by your PPOR.

So for tax purposes, it is an investment loan. If it’s used to buy the investment property, you’ll count it in your borrowings for it at tax time.

Cheers
Mel

Karl and Rita

You’ve got the concept right, but…

If your property is valued at $125K, you’ll find a bank only willing to lend you 80% (or 90% with MI), or $100K.

So you’d have PPOR loan of $74K and an investment loan of $26K secured against your PPOR, PLUS you would then have the new loan secured against your IP.

You need to keep the PPOR…[Read more]

I’m not big on buying only CF+ props, but I’m guessing (I haven’t yet read the article either) that if interest rates squeeze that much, there will be a lot less people who can afford a mortgage, and therefore more renters. Demand v supply. Less investors can afford, and sell, less supply. What will happen to rents – allowing for a lag time of…[Read more]

Q1.
If i have maxed out my family beneficiaries, can i actually include fjficm pty ltd (ie. the trustee os a beneficiary also so that i can be taxed @30%) or will i have to set up another company as a separate beneficiary for eg fracp pty ltd

Companies that you are a director of, or shareholder in, should automatically be included as possible…[Read more]

Wezwaz, two things about ‘success stories’

1. Many, many submissions were made – they of course would have chose ‘awesome’ results, as opposed to just average.

2. The results people achieved were probably at least 2 years ago, so prices have obviously moved, whereas rents don’t seem to have moved much at all.

My point, yep there are some deals…[Read more]

banderos, in this situation you are limited to whether the others wish to sell as well, or if either or both are willing to buy you out for an agreed price (less their new costs perhaps?)

Cheers
Mel

Hi welikerain – I do too, and we just had 6mm or so here in Canberra today. Welcome to the forums.

You’ll find a lot of peole on this forum have experience with trusts – so fire away with your questions. If you’re keen on a trust, I would suggest you pick up a copy of Trust Magic from http://www.gatherumgoss.com , and also do a search of this site to…[Read more]

I don’t think the Mint group come cheaply, but I would guess that they are pretty good – Bruce Whiting is a top guy who certainly knows his stuff.

http://www.mintgroup.com.au

To benefit ‘the max’ from both CG and Rental Yield would be to buy two properties!

Housing Commission homes ‘generally’ are seen as lesser homes by a lot of the population. I…[Read more]

Nathan, if you are happy with your research on the area otherwise, and buy subject to building and pest reports, then I would buy sight unseen….. but that’s just me.

I think we’ve seen many threads where people definitely wouldn’t, and a few where people have done a few times.

Cheers
Mel

Ben, you could alwasy talk to the relo, and see if they will agree to reborrow against the house up to 80%. Then you split the extra cash 50/50, and each do what you like with it – noting that your joint liability has also increased…..

Cheers
Mel

Originally posted by redwing:
Mel..$15K Income..

Oh well, get all your dental work done, go to lots of movies, take the train or bus..As you can now have a “concession card” [upsidedown]

Yep[biggrin]. Lucky I’ve moved back home to save some money – can’t do much with only $15K! A concession card would be nice. I was thinking about trying to…[Read more]

Dom, the big ‘push’ in using your LOC to pay your home off sooner is by spending everything on your 55 day interest free credit card, and then paying the card off on the due date by using money that has been sitting in the LOC.

By having the money in the LOC for as long as possible, you are ‘saving’ the interest you would have been charged by…[Read more]

Hey Huey

If they really won’t be convinced, and want to buy it in your son’s name, maybe you should offer your house as security for his loan – so he borrows the full 100%. This way, he’s got the full loan – you haven’t actually lent him any money, but your security is still tied up if he does anything wrong – which he won’t cos he should be…[Read more]

Hi denyell

If you own your first place outright, you could probably secure a Line of Credit up to 80% of that value. You could then perhaps pay the entire price of house 2 from this loan, then get a loan against the IP, paying the cash back into your LOC. Then repeat.

Or you could just take your deposits plus costs from your LOC, and borrow…[Read more]

Hi hoarel

I would say that if a profit is made, then the ATO will definitely hit you with a tax.

Best bet is to talk to your accountant I think…..

Cheers
Mel

Hey Neil

As Marc says, talk to dva. Depending on what they say about your Mum’s assets and stuff, my suggestion would be:

Your mum to sell her house – either VF, or outright, or to you, or whatever.

You then buy the house that she will then live in, charging a fair market rent, which she can pay for by spending some of the money she gets for…[Read more]

Hi Richard

This is slightly [offtopic] but noting that you have a ‘massive’ (to me anyway[biggrin]) number of Wraps, are you able to give a percentage of deals that the Wrappee has walked away from? If you don’t want to, that’s cool, cos just being nosey[blush2]

Cheers
Mel

dwong8, the tax office doesn’t have a problem with you using rents etc. to pay down your personal loan AS LONG AS you pay the interest on your IP loan. It’s where that ‘capitalises’ that they have an issue.

Misty, if you have a LOC on your PPOR with available equity of $160K, you could be in a much better position to buy an IP at around…[Read more]

I read/heard a story on similar lines of what you’ve said Ezy. It’s obviously possible, but you have to find a willing vendor I suppose.

The contract you write up says that you get the costs of the reno back before the profits are divvied up too…..

I think the example I saw was where an old lady couldn’t afford to sell for less than her…[Read more]