You can;t reset a 6 years rule!
since you bought it in 1999, it;s to late- you will still pay GCT for the part it was a IP.

Hi,

1. You can claim any place as your residence but only one place will be your PPOR and only one of them can claim GCT exception at any one time.
2. If this was your IP to start with, then it;’s to late to be excepted from the GCT – it had to be your PPOR then IP …in that case as long as you did not have a 2nd PPOR and you sell within 6 years you be fine – but not in your case. sorry

3. You will have to pay only half of the GCT ( im guessing you had this place for more then 12 month)

4. By living in the place for a certain amount of time- you can dilute the GCT payable to a point.

5. GCT will be calculated based on the % you had this as a IP.

Good luck

Regards
Michael

This fee does not exit through ANY broker!! not just the above aggregators…i use to have direct accreditation and now i aggregates through connective and in both scenario fee’s were not payable.

I suspect the company is pocketing this fee?? not sure….but if it’s a Advantage product- no fees.

Regards
Michael

Hi

Sounds like a wealth creation strategy that John Fitzgerald uses…a strategy i personally think has many advantages;

1. Since your “old” home will become a IP it will help with the tax part.

2. A lot of people make the mistake of moving to a WHOLE new area and buying/building from day 1; But in your case- since your renting it gives you time to search for your place, understand the market better ( rental, growth?), get some local knowledge about the community and you still have the flexibility of building SOMEWHERE else if you find this place is not suitable.

Finally the most important part of any wealth creation; the financial structure/ strategy to maximize benefit.
Really need a bit more information for a detail structure; but the most important features are:

1. Allows cash out…and for your benefit you might want to consider a lender with a no question ask 90% LVR cash out— it will help when cashflow is limited.
2. Apply for Interest only for 5 years – this will imporve and provide better cash flow ( you need every $ you can get for the construction)
3. Get basic Loan only- but one with unlimited redraw features
4. Don;t X- cross any of your properties
5. Soil test should be carry out if it’s a vacant land your buying
6. Go with a lender that allows Valuation prior to credit check

Regards
Michael

Correct CBA’s 95% is for OO.

The post didn’t state if he/she was applying for as a OO or IP….so i gave general information only.

But for 95% Investment – NAB ( existing clients only)

Regards
Michael

Your in luck; the 95% product has only been re-introduced 2-3 month ago…and there are plenty on the market!
ING, suncorp and CBA( must be existing mortgage customer) just to name a few that offer the 95% lend.

Homeloans LTD offer a 95% + LMI lend = so really its around a 97-98% LVR.

I get flooded with emails with clients asking if they have 20k saved up does that mean they can buy a 400k place? – the answer is NO. Because the Stamp duty and another legal cost is still payable ..and this can cost up to $13-$18k; BUT of course this will does not apply to First home owners who can apply for the FHOG

Regards
Michael

no app or fee if you go through a broker only…. as direct client the bank have to do the paper work n chasing up etc….

In the last 1 year, the most popular interest only i have put through has been NAB. Good rates, big bank, ok service, branch access. and 5 years interest only.

But NAB doesn't suit everyone; but if your situtation is not complex and stright forward- why not.

Advantage- thru NAB = NAB in 2005 i think bought Advantage, but be aware it's still a "seperate" enitiy- meaning rate can still go up without NAB autho and the company can still buckle; having said that No bank/CU really goes "bankrupt" it just gets sold off

Still safe, lower rates becasue no branch access/ overheads. – give them a go.

Regards
Michael

Mushroom, if your still thinking about this- just to let you know, for serviceability point of view the bank will convert all income into Aus currency and discount it off by 10%. so only 90% income considered.

Regards
Michael

Gee you sure have big plans! ahah which is good.

Im going to take a stab in the dark here; since you mentioned your eligable for the FHOG and your asking about the LVR- that means NORMALLY, you dont have much cash and no equity .

If that is the case, then NO it;s not possible- even getting this at a commercial loan would take some skills and judging around ( possible) but at residential rate – no chance.

Be mindful that:
1. FHOG does NOT allow purchase under Company or trust name- so will you buy this under personal name and NOT claim any “Tax deduction ” for the business.
2. for the shared use, you can only claim 50% etc… of the FHOG ( it’s the same as buying the place as PPOR and renting one room out) – in effect your renting one room out to your busines. This wont be the case if it’s a “home office”.

Sorry for the bad news, but if you flick me an email, i can look at your “financial” and work out if you can borrow under commercial and at what rate.

Regards
Michael