No Corporate Trustees.

You wont be buying and borrowing much with an individual Trustee.

Cheers

Yours in Finance

Hi Peter

We do a fair amount of SMSF lending and be suprised how many clients do realise just because the property is positively geared doesnt necessarily mean it will service on a SMSF calculator.

Also being a regional property you may find it is not an acceptable area for a 80% lend.

If you want to shoot me an email with the post code and town i can check the geographical location for you.

Cheers

Yours in Finance

Hi Tom

Just to clarify the point on LMI deductibility.

It is actually 5 years or the Term of the loan whichever is the shorter period.

In the case of a 3 year interest only period the premium would deductible over 3 Years and not.

LMI is an opportunity cost and certainly where a client has limited funds or equity i would always look at it as a gearing strategy.

As far as the level of cash reserves are concerned then this will be dependant on the client risk profile and also the uncommitted income position. If the deal is tight on serviceability and a new hot water service would mean that you cant feed the children for a week then you would want to keep some rainy day money up your sleeve.

Cheers

Yours in Finance

Regret to say with Esuper you get what you pay for and realistically that is very little.

Had a couple of clients say that on the surface it looked a good deal but then of course the extra questions and requested where extra over and above the scheduled fee something that an Accountant normally does for nothing.

As Jac has said probably a matter of giving Esuper a call and asking where it is at.

Cheers

Yours in Finance

Have you had a look at http://www.grannyflatapprovals.com.au

Seem to have a few good models and certainly professional in their approach.

Cheers

Yours in Finance

It is what my wife spent on shoes when we were in Paris last year …..

Cheers

Yours in Finance

Welcome aboard and hope your time with us.

Feel free to ask as many questions as you like and join in the discussion as we are a pretty friendly bunch .

Cheers

Yours in Finance

Hi Fly

Yes hate to say you would lose your entitlement to the FHOG as the current Title is in your sisters name.

Secondly whilst i appreciate you are wishing to do the right thing by your sister why dont you look at buying your own place.
You only have to satisfy the terms of the Grant in regards to the occupancy period and then you could move out and let the property.

Structure it carefully and you should reap the longer term rewards.

Cheers

Yours in Finance

Whilst you cant get your contributions back it can certainly make a difference to the price when you come to sell the property.

Most prospective buyers will do a search of the Body Corporate records to ensure there is no large anticipated expenditure due and than has not be catered for meaning they will be likely to incur the potential cost.

Cheers

Yours in Finance

Hi Warek

Welcome to the forum and i hope you enjoy your time with us.

Certainly not ideal to cross collateralise your loan over 2 securities and setting up 2 separate loans might be preferable.

Given that the property will one day be your PPOR you might want to consider buying the property as Tenants in Common with your wife holding 99% of the shares and you the 1%.

This would certainly aide your serviceability (if this is an issue as without further data it is difficult to assess) and would have very little affect on any loss of Tax deductibility for the years in which the property is rented.

Loan interest would certainly be deductible as the ATO look at the purpose of the loan and not the security in which it is secured.

As i have said before if the lender accepted a pogo stick as security the interest would still be deductible as long as the purppose was for investment.

Couple of strategies i would also use to reduce the interest payable.