Forum Replies Created
Like above no expert, but from what I know you can still claim the property of your main residence even if you are physically living with your parents at their property.
Likewise if you own other investments, as you can only claim one property as your main residence at any one time (which would be the first one in your case).
Cheers
Tom
Hi Yiannakis,
Yes, for established properties as long as you intend to move in within the first 12 months and reside in the property for a continuous 12 months, then you can apply for the 40% stamp duty reduction at settlement. It's slightly different if you're building.
As for CGT, if you rent it out first you cannot claim a full exemption, however you may claim a partial exemption depending on the pro-rata time you lived in it.
Cheers
Tom
Scott No Mates wrote:The contract may provide that the deposit be put in an interest bearing account in joint names of the purchaser & vendor. In this low interest environment, even a $100k deposit will earn very little interest over the 40 days that the funds are held in trust.As Shahin points out, the RE trust account does not earn interest (this is creamed off by the State Govt for some RE fraud scheme).
Yep, here in Victoria the interest is paid to the Victorian Property Fund which is administered by Consumer Affairs Victoria.
Cheers
Tom
Current rules allow you to have purchased investment properties and still be eligible for FHOG, on the proviso that you haven't lived in them for 6 months or more, and they were bought after July 2000.
For other and complete conditions, follow Jamie's link above.
Cheers
Tom
Would have to complete a land transfer form of some sort to transfer the existing share to you.
Apart from standard lodgment fees, stamp duty would be payable and CGT might be applicable if it was an investment.
Cheers
Tom
Jenny, almost all credit cards are unsecured, however in this case the LOC is there to "secure" the credit card against the property. Fallback for the lender.
As for personal loans, etc, their monthly expenses and liabilities would have to be allowed for and approval would be based on the overall strength of the application.
Cheers
Tom
Fixed rates are independent to the variable rate. They don't follow the RBA cash rate. Lenders assess them with a different set of criteria.
Whether fixed rates will fall further, anybody's guess.
Cheers
Tom
Like Shahin mentioned, your broker would know more about it than us, but my guess is that they have offered the $20K credit card to cover stamp duty costs, etc (the only time you would really need it) so that you can use the deposit on the property and lower your loan LVR and LMI. Whether it's the best way forward is another issue.
Cheers
Tom
Right on the money there Jamie. Those sorts of websites prey on the ignorant who get easily sucked in at the sight of a low interest rate figure.
When I engage with people in social circumstances, talk always comes around to what sort of work we do. When I tell them I'm a broker, they usually come up with a story of how cheap their current mortgage rate is and how they are saving money. I normally find a chink in their figures and advise them how it's actually costing them. They can't believe it because there programmed to think lower rates are better.
Bankers also do their best to keep brokers in business. Had a client come to me last week who went direct to a lender and they messed with him for 4 weeks before they told them no. Servicing was tight but I seriously could not see what the issue was, and I ended up obtaining unconditional approval pretty quickly elsewhere.
Cheers
Tom
Hi Property Seeker,
Is your property in Vic where for 2 unit lots there is no need for an active body corporate? If so then the owner of each property needs to organise their own building insurance as well as mention that there is common property that needs to be insured as well.
As Jacqui mentioned, this is an annual premium, it seems that yours has lapsed and never renewed for some reason.
Cheers
Tom
AFG is my actual aggregator and I do put deals thorough them on their direct line product. Is a decent product however it isn't conducive for people wishing to turn PPOR's into IP's down the track (i.e. they don't allow IO on PPOR's), but it may work for you depending on your circumstances.
Like other have said, need to go through what you want to do with your property/future goals before deciding.
Cheers
Tom
Wilko,
I think the OP has suggested the loans are not initially cross collaterised and that they are in fact standalone loans, but some of them have been used to pull equity out (deposit and costs) for other investments.
Cheers
Tom
I did my certificate IV and diploma training with the National Finance Institute. They do face to face though I'm not sure about Adelaide.
I know that the MFAA have a list of their preferred training providers on their website if you want to google it.
Cheers
Tom
Newbeez,
You will find that your interest figures are way off. The reason being is that the interest on P&I repayments is not a constant figure across the loan term as it is calculated on the outstanding principal, and with each payment the principal decreases, and therefore so will the interest that is paid.
Like the Dark Knight suggests, the easiest way is to use an online calculator. Here's one which you can use, its a honeymoon calculator but for all intent and purposes you can use it for your situation for the above scenario. You can click on the amortisation tab to see the interest paid each month.
http://www.visionabacus.com.au/w1/calculators/main/afgonline/HoneymoonLoan.html
Cheers
Tom
Kept both me and the SRO busy as well. FHOG applications that normally took a few days to approve went out to over 2 weeks.
Not over yet either. Just had one come in that was signed before the deadline
Cheers
Tom
Hi Lak,
You also need to take into account costs such as stamp duty, etc which will eat into the deposit. Also in Vic as of 1st July, the government has abolished FHOG for established properties and it only now applies to new properties, so it were counting on that, you would need to re-assess.
Cheers
Tom
As Nathan mentioned you cannot apply the 6 year CGT exemption rule if the property has been rented out first. You need to have had it as a PPOR from settlement date for it to be considered.
There was a thread in this forum about a month ago where a buyer had a tenancy ending about 2-3 weeks after they settled which meant they were automatically precluded from applying the rule.
Cheers
Tom
Hi lance1,
You would need to check with a qualified accountant, but my understanding is that all holding costs plus any interest expense as a result of a loan can be added to ascertain the cost base.
Cheers
Tom
