Forum Replies Created
Sally,
I am in Newcastle too[
] just had a lovely afternoon at Nobby’s with the girls!.The Perm doesn’t have the most competitive rates and watch out for their deferred establishment fee.
There are better products out there!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
We make a good team Mel!
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
http://www.ato.gov.au/individuals/content.asp?doc=/content/31258.htm&page=1#P19_325
The above link states:
What you can claim
You can claim a deduction for certain expenses you incur for the period your property is rented or is available for rent. However, you cannot claim expenses of a capital or private nature – although you may be able to claim decline in value deductions or capital works deductions for certain capital expenditure or include certain capital costs in the cost base of the property for capital gains tax purposes.You may be able to claim a deduction for the following rental expenses:
advertising for tenants
bank charges
body corporate fees
borrowing expenses
cleaning
council rates
electricity and gas
gardening and lawn mowing
in-house audio/video service charges
insurance – building, contents, public liability
interest on loans
land tax
legal expenses
lease costs – preparation, registration, stamp duty
pest control
property agent’s fees and commission
quantity surveyor’s fees
repairs and maintenance
secretarial and bookkeeping fees
security patrol fees,
servicing costs – for example, servicing a water heater,
stationery and postage
telephone calls and rental
tax-related expenses
travel and car expenses – rent collection, inspection of property, maintenance of property, and
water charges.I think we have found another professional who isn’t up to date.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sally,
All lenders will lend on 20% depending on serviceability.
I wonder if you are describing a LODOC loan where your income does not have to be substantiated?
Can you be a little clearer with your question?
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Anastasia,
Should an application not proceed for any reason then the broker is essentially out of pocket. Sometimes this is his fault but mostly it is due to the client not completing a purchase.
Some brokers charge an upfront fee for an application of about $250. This is usually done after intitial interviews and when a strategy is decided upon. This is refunded if he cannot get finance and is also refunded when the loan settles. The broker retains it if the client chooses not to go ahead with the finance.
I don’t do it and most brokers don’t either. The reasoning is very valid but whilst the majority don’t charge then it isn’t sound business sense to be the one to do so!
Thanks also for the positive feedback – I feel thrilled to know that my advice is sometimes helpful!
Have a great weekend everyone!
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mel,
Don’t beat around the bush do you?
But I do agree…..I was trying to extend a little professional diplomacy [
]Have a great weekend!
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Anastasia,
Very valid question.
Avoid brokers that charge a fee. They are double dipping as they are also paid by the lender. Unless of course your loan is really out of the ordinary that it needs a lot of additional expertise or effort.
Banks pay us to bring in business. They save infrastructure costs by having us out there writing loans at all hours!
I have no doubt that my statement below is true of most, if not all, other brokers here on the forum and in general. However I can only speak for myself.
I give you my word that you will not pay $1 more to use my services than you would if you were to approach a bank directly. There are no hidden surprises.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I can’t make a call on what the market is doing.
However as most lenders want you to demonstrate a 5% deposit that has been saved over a 6 month period I would consider paying the minimum off your debts and saving a deposit.
I do have lenders that aren’t so fussy oin this requirement so it isn’t absolute.
Good luck,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Luckyone,
Just talking to some colleagues and am going to go out on a limb here and say your broker is wrong.
Are there any accountants out there who can advise?
Have a great weekend!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
From the ATO’s section on Capital Gains Tax.
http://www.ato.com.au/individuals/content.asp?doc=/content/31570.htm&page=10#H4_6
Main residence
Generally, you can ignore a capital gain or capital loss from a CGT event that happens to your ownership interest in a dwelling that is your main residence (also referred to as ‘your home’).To get full exemption from CGT:
the dwelling must have been your home for the whole period you owned it
the dwelling must not have been used to produce assessable income, or
any land on which the dwelling is situated must be 2 hectares or less.
If you are not fully exempt, you may be partially exempt if:the dwelling was your main residence during only part of the period you owned it
you used the dwelling to produce assessable income, or
the land on which the dwelling is situated is more than 2 hectares.
Short absences from your home — for example, annual holidays, do not affect your exemption.I think the point in questions is the following:
“the dwelling must not have been used to produce assessable income,”
It is my understanding that this refers to the rental of part of the home or the use of the home for business purposes such as a home office or workshop – where you have claimed a portion of the utilities and interest.
Can anyone add any further info?
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Lucky One,
I am not aware of this. Have you a reference to the PPOR being liable to CGT should equity be borrowed against for an IP.
Thanks,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
IO loans require the payment of the monthly interest component only. You are permitted to pay additional into many IO products. As much or a little as required. The Principal is reduced and the interest component decreases accordingly.
This money can be redrawn as required – important to redraw it for deductible purposes or the ongoing interest bill has to de divided according to tax deductibility.
Hope this makes sense.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mitch,
There are many options available.
One strategy I often recomend is to borrow 20% plus costs against the family home then borrow the remaining 80% against the IP. This second loan should certainly be IO and so should the first if there is any home loan debt still outstanding (not inc the 20% above).
There are many ways to skin a cat and I would recommend you speak to a broker to find out a strategy that suits you,
Good luck,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
He cannot apply for it for this property unless he resides in it during the first 12 months.
Owning an IP does not prevent him from using the FHOG when he purchases his home.
He cannot move into this IP after the 12 months is up or he will lose his entitlement.
You can check the legislation at http://www.osr.nsw.gov.au or your states equivalent. It is a federal initiative so the rules are the same accross the states.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
A credit card might be the easiest option.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There is no limit.
You might be confused with some of the stamp duty concessions available for first home owners.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Or you can fix the rates.
6.29% for 5 years is achievable these days.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Maybe you are giving some folks too much credit by looking for reasons. Maybe we should appreciate them for being willing tenants!
In my experience there is sometimes no reason. People don’t consider buying a home because they just think it is out of reach or it isn’t a priority to them or even because there just isn’t any motivation.
I believe the Centrelink rent assistance dries up if they buy a home too.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If it has always been their home then no CGT.
If their home then they move out and rent it for up to 6 years then no CGT.
Unless they buy a new home. You can only have the exemption for one home – they may overlap for some months if you buy one whilst still selling the first one though.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Where are you?
$900 isn’t expensive. I shopped around and found $800 plus GST about the cheapest. The most expensive was $2500. You can clearly see that $900 is at the lower end.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
] just had a lovely afternoon at Nobby’s with the girls!.
]
