Forum Replies Created
West – there is no timeframe stipulated.
Mark – West means to make it your home. This may not work if you already own a home.
If you keep the property for 12 months or more you will have a 50% reduction in any CGT due on sale. Remember to retain all reciepts as these come straight off the profit!
Cheers,
Simon Macks
Finance Broker
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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 your goal is to buy and hold for 15 years you should be confident of seeing at least one cycle.
I have a similar goal and am buy and holding with the intention of CG for my old age.
I will lock in rises by upping my LOC and ignore falls.
Cheers,
Simon Macks
Finance 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.
Verbal offers are OK in NSW. The acceptance is worthless as “done deal” until contracts are exchanged though. This can usually take another week.
Cheers,
Simon Macks
Finance 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.
This is really only the case where the loan is above 80% of the purchase price.
There is a lot of flexibility between lenders. Speak to a mortgage broker about your situation and see what is available for you.
Cheers,
Simon Macks
Finance 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.
Originally posted by muli:ok, i see.
Also, with a LOC i’m told your money is “always working for you”
i.e. you get paid say $5000 for the month into it ALL of this is then reducing the loan. Obvisouly you take bit by bit out for bills etc.. But the interest is calculated daily.
But with the offset, you have to put money into the offset account, and only this is reducing the loan.
correct?
An offset can work in exactly the same manner as the LOC. You indicate a savings account as your offset – all your pay goes into it and living expenses come out of it.
Interest on your home loan is calculated daily in exactly the same manner.
I have offset accounts at well under 7% whereas LOC are usually a bit more expensive.
By all means use either – you will achieve the same end. I just happen to prefer one to the other.
Cheers,
Simon Macks
Finance 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.
Allan is in NSW – anyone have a help number here?
Simon Macks
Finance 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.
Yes you can, however you can only access your funds accumulated in the offset – it won’t be an approved credit facility like the LOC.
Simon Macks
Finance 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.
Great post and great reply Surrey.
I have found that it is often best to have money friends and non money friends with whom things are discussed.
I have also noticed that as people become more successful they will start surrounding themselves with like minded people and avoid those that bring them down.
It is hard, I don’t wish to suggest you become mercenary with your friends but one must seek to find a balance or keep money subjects taboo with certain people.
I would rather be rich and unhappy than poor and unhappy any day.
Cheers,
Simon Macks
Finance 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.
Not in Melbourne – mine are all in Sydney.
I think Mobile Mortgage is out your way – why don’t you drop him an email and see if he has one.
Cheers,
Simon Macks
Finance 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 personally would use an IO loan with offset.
This is my reason. Often first homes are soon outgrown. People either sell and buy an new home or, increasingly more popular, people keep the old home as an IP and buy a new home.
Should you decide on the latter the loan for the original home is now tax deductible as it is an income producing asset.
Because all of your equity (paid off equity anyway) is in the offset, it can be removed from the offset to buy the new home leaving the full original debt tax deductible.
This way you maximise the size of the deductible debt and minimise the non deductible debt.
If you drew these funds from a redraw or a LOC then the purpose of the drawing/loan is for a home so no deduction.
I fully endorse earlier post about the dangers of LOC – remember an LOC in effect is a huge credit card secured by your home. I have enough trouble with my $5000 Visa – no way do I want a $200K Visa!
All the best,
Simon Macks
Finance 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.
Allan,
There are two issues here and you should seperate them in your mind at this stage.
The real tragedy and the one you need to focus on is your father’s death. This is a time for grieving and spending time with the family.
The will is an administrative issue that can be dealt with a little later on. I have no experience in this matters (thankfully so far) but I imagine I would wait to see what it actually contains. In this low time you might be imagining far worse than is the case.
After the will is read there will be time to contest it. You need to contact a solicitor and give him the medical documents available. There are solicitors in our local paper who advertise their speciality is will contesting.
If the will is voided then you might well find that your entitlement might be quite small. After all your father does have a surviving spouse and I believe that their claim is quite strong.
I know you are feeling very low at the moment. I think you should discuss this with your GP who has a number of tools available to help you through a difficult time. This will allow you to think straight and also be stronger for your family and any potential legal fight.
Should the suicidal feeling become stronger then I suggest you take yourself along to the hospital. They have a team available to help you through these feelings and you would be surprised what a difference it makes. You need to think of your family first at those times.
I wish you all the best and will be thinking of you.
Kindest regards,
Simon
Scorge,
Your loan repayments on your margin lending will reduce your serviceability.
Depending on all the figures this may have no affect or it may be a deal breaker.
You should contact a broker and let him know your plans and figures and see how it pans out.
I have a margin loan and mortgages so it is certainly doable.
Cheers,
Simon Macks
Finance 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.
Absolutely not.
If xcoll and one is sold then some of the proceeds might be required to bring the existing LVR down to 80% or below.
It isn’t the evil many make out but it can make a bit of extra work at some point.
Please don’t worry too much.
Cheers,
Simon Macks
Finance 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.
That is correct but I don’t believe it is the only method available.
I will check it tomorrow.
Cheers,
Simon Macks
Finance 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.
Is what my accountant advises.
I am talking a registered valuation – not a dodgy Real Estate Appraisal.
Anyone know differently?
Simon Macks
Finance 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 company is usually NOT the best structure.
See an accountant and ask about trusts, ensure you find one that is experienced in this area. I can give you several if you need one.
There are all sorts of different types of trusts.
A bookkeeper is fantastic at keeping books but probably not the best choice for structure advice.
Cheers,
Simon Macks
Finance 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.
It is very common today.
Rates are not really much more than normal lending nowadays.
I suggest, if you are considering this, you speak to a broker and see if it is what you really need.
Cheers,
Simon Macks
Finance 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.
Keep in mind that you will lose the CGT exemption if you rent the place out.
If you do rent it out I would have a valuation done which will lock in your CG so far and you can still claim the exemption on that portion.
You can also use the equity to buy two IP’s if youy wish without moving out subject to serviceability and purchase price.
Speak to a capable mortgage broker about your options.
Cheers,
Simon Macks
Finance 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.
Luke,
In Australia it is possible depending upon the situation and the lender.
I am not sure about NZ properties.
Cheers,
Simon Macks
Finance 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.
Can you tell us what you have found out and also perhaps let us know why you got cold feet over this deal?
Thanks mate and I hope it works out for you.
Simon Macks
Finance 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.
