Forum Replies Created
This is kinda on the same line.
I went to a few people to get a loan, and two people came back with the same loan with the same bank. The second person who offered me the loan advised me to cancel the first, as he said that it looks bad if two different people lodge a loan application with the same bank, etc, etc.
I’ve also heard, that if I apply for too many loans at one time (e.g. an investment and home loan), that the banks will find out and will be less likely to approve my loan. The reasoning here is that even though I will only take out one, the banks will either think I’m doing something dodgy or don’t know how I want to use the money, hence, less likely to approve.
Are either of these scenarios true?
Let’s see if I get this right.
You pay cash outright for the property. The contract is stacked say $100,000. This will mean that down the track, you will pay less CGT (only if its an IP). CGT will be approx $24,500. The increased REA fee??? The pay off for the vendor to agree to this???
You try to finance using the equity in the property, but only get market value, so still only access 80% of value.
In the end, you save only on the CGT- if there’s much left in it for you. Even less of a reason to try it. Surely the ATO wouldn’t like this at all.
Still don’t see how you can assure yourself of a rebate from the vendor. Write up another contract on condition of the first that he’ll buy something off you for $100,000? As if that won’t look suspicious.
Definitely not suggesting people contemplate this, but if you’re going to do it, may as well go the whole way. What’s one more lie?
Munjy
Andy,
Yeah, depreciation while your renting it out. Say, the first 6months before you move in. I’m sure that the most depreciation is in the first few years of a new place. Every little bit will help in your situation I suppose.
Munjy
Originally posted by redwing:Even more worrisome, he thinks central banks around the globe out of
desperation will try to re-inflate the world economy with more
liquidity that will create an inflationary spiral unseen in the
economic history of mankind.Personally I think that further correction/downturn in the property market is possible, however, the central banks increasing liquidity would have to be a fairly way out idea. This is really the crux of his argument for global collapse, and if this does not happen, the wheeling around wheelbarrows of money won’t happen either.
Surely these central banks wouldn’t ever be so stupid as to try something like that.
For those who believe that such a collapse will be as severe as predicted, in what way will you be insulating yourself? Buying gold? Buying a farm?
Munjy
Dr X,
What would be the reasoning behind giving him a 1st class trip? You’d think they’d just do a complete runner!
There are somethings in life you just can’t live down or even forgive yourself for. Your friend must be kicking himself still.
Munjy
Not having kids as yet, I’m sure I’ll change my mind in the future, and change it numerous times. However, I really do believe that by not allowing kids to see the real world for themselves, you are actually depriving them of acquiring the necessary skills to survive and thrive.
Once I do have kids, I will teach them the best I know how about money, etc. Simultaneously, I will conceal how wealthy I am by living in drossville. Once they turn 18, I’ll kick ’em out and buy myself that waterfront mansion I’ve been eyeing my entire life!
Anyone with 3 PhD’s has obviously been insulated their whole life by being supported financially (uni fees will only go up) and most likely all their knowledge is institutionalised having spent their entire adult life in an insulated theoretical/idealistic “educational” facility. Pffft…. bloody academics!
Munjy
That’s his first post?
What’s the bet he never posts again?
I’ve heard of stacking also as “jacking the contract”. It is fraud absolutely and I’ve never used it but have heard of its use.
Especially good for people who want to get 100%+ finance. The vendor doesn’t really get anything out of this and unless it’s his PPOR, will have an increased CGT bill. Also, the REA will get a bigger cut! When you come to selling, there is also less CGT!!!! Big advantage
If you don’t have a deposit and don’t want to be a wrappee, stacking is an (illegal- but I’m no lawyer) alternative.
What makes me wonder, is how do you get the redemption following the settlement? Terry?
Munjy
Andy,
I totally get it now. And I’m with you on everything. As for loan structure, I’m sure TMA would say IO with offset. Gives the most flexibility. As for interest rates, if you sell this home within a yr, I don’t think it’d be worth fixing.
As it’s a new unit, you’d probably get good depreciation initially – have you looked at that? It may not be so bad.
Munjy
Would love to know what was on the agenda and is the purpose to just network? What are you all discussing?
Originally posted by ss2306:Is there any way of tranferring it into her husband’s name without paying stamp duty again? The title deed for the land is in her name but the bank loan is in her name with her husband as the guarantor. What are the implications of this scenario?
Hi ss
As far as I know, there’s no way of transferring title without stamp duty. Except if she dies and wills it to him – not really feasible.
As for the guarantor business, only if she defaults on the loan will it become an issue. That’s between the lender and borrower, not the office of state revenue.
Thing to do now is to work out your options: sell as initially planned; rent without the higher tax deductions; is it possible to shift his income into her name? e.g. if he was to employer her?
This is another thought that I just came up with so I may just be talking hot air. What if, he leased the property off her for greater than market rent to boost her income. Then, he could lease out the property at market rents and claim a loss??? Is this legal/possible?
Just a few thoughts.
Hi Andy,
I’m really confused about your strategy.
Originally posted by andymitchell:with the ultimate aim to sell quite quickly so we can buy a larger property…
If our plan is to sell within 12-18 months
Why would you try to buy and sell so quickly fully expecting to realise a loss at the end of it? Why not just rent? There’s no rush to use your FHOG or stamp duty exemption.
Confused,
Munjy
Get really good at poker?
Originally posted by richardcass:Hope this makes sense…(hope even more that it makes sense to the tax man!)
That’s the bottom line isn’t it? Ever notice that when you ask an accountant a question he never really seems like his 100% sure? I always get the response that tax is a very complicated issue… etc, which I totally empathise
Also, despite what your accountant tells you or what he lodges on your behalf to the ATO, you are still personally responsible! That kills me! lol
Sounds like a great concept actually Lumwood. Kinda like a timetable for your entire day everyday of the week!
The closest I come to it would be a “to-do” list in my diary for any particular day. Not really broken down into a time budget as such.
But in all honesty, I’ll probably never get around to doing one, just like I really don’t have a budget!
Really? Forever? That’s great. Dunno where I got that from.
Thanks
I’m no accountant, but I’ll give my best with this one.
I’m sure that CGT is payable by yourself if you are investing (which seems like it) and yes, if you hold for over 1yr then 50% discount. The owner-occs won’t need to pay CGT if its their PPOR.
Just because the building is a duplex, doesn’t change your own or the other person’s tax position.
Hopefully an accountant will clarify for you.
Hi pasandbec,
I think the confusion is here. You can’t claim “capital loss based on the percieved / approximated / appraised”- this is true.
However, a capital loss can be offset against future capital gains. E.g. If you sold a house/shares and lost money, then sold and made a profit, then minus the capital loss from the capital gains before figuring out the tax rate. I’m sure that you can only carry a capital loss for only so long… a year? something like that.
Hope this clears the air!
I fall just outside the age, I turned 26 in May. In any case, my story is that I bought a commercial IP last year. Nothing flash, but a start. Have been approved for a home loan but still thinking renting might be the way to go…
I’m in disbelief at how far some people travel given the time in which they’ve done it! Awestruck! Major envy
Without declaring bankruptcy or something similar, how could he have gotten out of the lease? Pretty wierd he even bothered to call you
Munjy
