It wouldn’t make sense to use a LOC. The existing loan could be utlised and tax deductibility achieved if done right

You don’t know what you are talking about!

Thanks Colin

I am not an accountant but since only lawyers can set up trusts that doesn’t matter! I don’t do tax returns though.

I am. If you mean rent where you live and invest elsewhere aka rent vesting

I want to live in places where i don’t want to buy – CBD – so I rent at the moment.

This is something I usually suggest people avoid doing. Loss on the main residence exemption, land tax in many states – such as NSW where it would cost  $8,000 per year for land content valued at $500,000.

It would be better, usually, to own the main residence and rent it out, using the 6 year rule, and rent somewhere yourself where you could…[Read more]

It is probably best to go to a broker who could compare your serviceability across several lenders. I find that CBA is generally more generous than ING for example.

But like Richard said there will be not a huge difference. Generally not enough to make that much of a difference.

Generally a full application again as servicing is more stringent.

I am not sure what you mean exactly but Company A could lend money to Company B which could buy the property. Company B could buy the property without a loan using Company A’s money – thereby creating a resulting trust. Company A could pay income out to its shareholders who could lend to Company B to buy property.

There are lots of legal and…[Read more]

They will just be auctioned through various agents. you want find a website listing sheriff sales I’m sure. You also are unlikely to find a bargain.

Its possible, but unlikely to be agreed with by the vendor.

Yes

If your living expenses are under the HEM index they will

a) not believe you, and

b) bump it up

yes

Many, if not most, will assess existing debts at a rate higher than you are actually paying too.

1. no

2. All owners will need to provide a mortgage. If the mortgage secures a loan a new loan application would be needed. You would need to seek advice on ownership % to satisfy the lender. All owners would be jointly and severally liable for the debt and servicing as one unit

3. decrease

4. heaps

See my signature below!

That would result in stamp duty in most instances. You would need to resell about 10% higher to make it worthwhile.

Yes thats how you could structure to avoid crossing. I also generally recommend that as the values of the IPs rise the 20% deposit loan be moved over to be secured by the investment property it relates to. But this might mean unmixing the loan first (2nd one in your example) if it had been used for 2 or more properties.

This is like insurance in a way. You don’t need to insure your house until you smell smoke, but by then it is too late.

I can think of real life examples x 3

Peter had 2 properties and the LVRs were relatively high. He had a heart attack and his wife left him and lost his job (not necessarily in that order). He needed to sell one property to…[Read more]

what is wholesaling?

what is ‘wholesailinng’?