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 which Water Freezes
14 – 15 players in a rugby team
15 – 3 wheels on a tricycle
16 – 100 cents in a dollar
17 – 11 players in a footbal (soccer) team
18 – 12 Months in a Year
19 – 13 = unlucky for some
20 – 8 tentacles on an octupus
21 – 29 Days in February in a Leap Year
22 – 27 bridges in the Northern Territory
23 – 365 Days in a Year
24 – 13 loaves in a bakers dozen
25 – 52 Weeks in a Year
26 – 9 lives of a cat
27 – 60 Minutes in an Hour
32 – 1000 Years in a Millenium

And we don’t have:

5 – 66 B of the B
6 – 52 C in a P (WJs)
9 – 39 B of the O T
28 – 23 P of C in the H B
29 – 64 S on a C B
30 – 9 P in S A
31 – 6 B to an O in C
33 – 15 M on a D M C

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 and investment loans separate for taxation reasons.

Cheers
Mel

Companies that you are a director of, or shareholder in, should automatically be included as possible beneficiaries.

Absolutely. It’s the settlor you don’t want to be.

You would have to have your company invoice whoever is paying you – then the company will pay you, but I don’t believe it would cut your tax level at all – sorry.

Only for company matters – or for company ‘expenses’ that can be legally done for you – in fact, the trust can ‘gift’ things to beneficiaries at various times, ie CDs, etc.

No idea. I believe you borrow to purchase units in the trust (same as for a unit trust). The trust will use your funds to purchase a property (your loan can be secured against the property). The trust will distribute its profit to you as owner of the units. If it’s less than the interest YOU pay (the trust has no loan, therefore pays no interest), then you can claim the difference against your income. Speak to an accountant to clarify this.

You can lend your money to the trust. The trust must open it’s own bank account, and be completely separate to yours.

Dale GG is really sold out? http://www.gatherumgoss.com I wouldn’t think that would be the case, or it would be for very long as his manual shouldn’t be too hard to print!!

For clarification (I think you are in Melby?) give Dale GG a call and go see him.

Cheers
Mel

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

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 think they often all look identical, and are mostly smaller than privately built homes. Not sure about other states, maybe others can help out here.

Sale by Tender is sort of a silent auction. You have to submit your bid in writing before a due date, with your price and conditions. The sellers then go through the offers, and choose the one they want to accept. Not sure of many ‘benefits’ for buyers….

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

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 otherwise making the purchases with cash….

Cheers
Mel

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 80% against house #2 (avoiding Mortgage Insurance). As house #2 increases, you could refinance, and pay back the deposit etc. into your LOC. You could (depending on servicability, equity, etc) be also buying #3 and #4 in the same way before needing to refinance….

If you were planning to sell #2 within a short period of time, then don’t get a loan against it, but use sale proceeds to pay back the LOC. This then saves getting a mortgage, but you’d want to be sure of growth because of all the ‘extra’ costs involved in purchasing and selling….

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 selling her house.

Good question about whether you’re an only child – you may need to discuss with any siblings. If Mum does sell her house, she’ll have a tidy sum in the bank, and you’ll need to work out what to do with those funds – again depending on what dva says.

This way, your Mum will avoid the purchasing costs, and will have money in the bank for some luxuries (spend the kids inheritance[biggrin]) which I’m sure you’ll agree she deserves (all Mums do[inlove]).

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 $145-150K, as you would be able to settle much quickly than if you had to wait for finance etc. If you were able to buy under market price, (cos of a quick sale, or a planned reno), then you could purchase for cash, own the title deeds cos you own the place free and clear, and then reno, or go to a bank for a loan.

Part of your purchase research told you that it was undervalued, or you could add substantial value by renoing, so the bank you approach (it could be any bank, you are not limited) should value it at (hopefully) your anticipated market value.

If it doesn’t, then your research was faulty, or perhaps you try another bank.[biggrin]

Cheers
Mel