In that case you have to consider what would the opportunity cost be of tying you your deposit and borrowing capacity in an asset with no growth – what could you have done with the money instead?

This year

Sounds like the sales person has already decided what you need before they have met you or know anything about you.

Sounds like your superannuation guy is looking out for himself too. What is his commission?

It would have been pre CGT, but subdivision would change this. It probably could be sold and the main residence claimed if they had lived in both sides of the house, it was rented for less than 6 years, they had no other main residence which they claimed and they moved back into both sides of the house and it is on less than 2 hectares and hasn’t…[Read more]

Was that person a property advisor or a sales person in disguise? The differences is mainly the fact that the sales person has already decided what you need before they have met you or know anything about you.

entire

Here is a link to something I wrote explaining ‘all monies’ clauses. https://www.propertyinvesting.com/topic/5025757-what-is-an-all-monies-clause/

If a borrower doesn’t pay the bank will take possession of the house, sell it, and recover the money they lent and the associated recovery costs. If they property is valued at $800k and they only need to recover $400k it should be pretty simple. Not sure why they would contemplate sending someone to london to investigate – even if you had hidden…[Read more]

It would depend on how you are set up now.
PI loans can help
Related party loans can help
joint purchasing could help
sale of one or more could help – but consider whether you could borrow to buy the replacement

etc

What does she fear about an ‘all monies’ clause?
If someone ends up bankrupt the bank can use its mortgage agreement with the borrower to secure all monies owed to it.

So I guess you are asking if there is a second mortgage to a related trustee would the bank take priority over the 2nd mortgagee. I think that will depend on the wording of the…[Read more]

in the year 2000 these were going for about $150k. What are they selling for now?

recalculate based on value.

not sure what you mean about selling. Land tax is paid for the full year in advance and you do not get any credit back if you sell mid year. But you can contract with the purchaser for them to reimburse you.

lexd

Don’t see how delaying things would change anything.

I suggest you seek tax advice as you could probably pay off that loan, using the offset money, and start again. but before you repay the loan you must split it so you can repay the relevant portion. Splitting it can unmix it.

e.g. You want to buy a $100,000 property, you could:

$80,000 borrowed from ANZ using as security the new IP. IO loan
$25,000 borrowed from Westpac using as security the PPOR. LOC
——-
$105,000
——-

105% borrowings with no cross collateralising

Once settled convert the LOC to a IO loan.

Its like unscrambling an omelette.

it depends on the situation actually. You might be able to pay off the loan and then reborrow. But if you increased and existing loan you would need to split it first.

Seek tax advice.

Here is a thread where someone appears to have suffered a mixed loan:
https://www.propertyinvesting.com/topic/4995626-redraw-conflicting-advice/

Dinh, did you increase the investment loan and place any of this money into the offset?

If so you have contaminated your borrowed money, and you have also contaminated the investment loan.

See my other post which I just wrote where I warned about this.
https://www.propertyinvesting.com/topic/5025544-need-advise-cash-in-equity-through-loan/

A trust is a separate entity for tax purposes (not for legal purposes though). So any expenses the trust incurs it claims, including depreciation. A trust can negatively gear, but you cannot use a loss in the trust to offset your personal income.

Unless your mortgage broker is also a tax agent or a lawyer, they are not qualified to give tax advice.
s 8-1 ITAA97 will allow interest to be deductible where funds are borrowed to use to investment property acquistition. If you borrow and place that money into an offset account, there is no connection to the investing.

If you later use that…[Read more]