Don’t know about that Grant. I see what you mean, if someone lent you money, you would probably need to get it a bit in advance and then use it. Where do you put it in the meantime?

Better talk to your accountant about this one.

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I would say no to that.

If you take money from a LOC you are borrowing. Deductibility depends on what you have borrowed for. In this case you would have borrowed to pay money into a savings account.

You have to be careful about moving money around. I remember reading a case where the person increased their loan, and put the money into a savings account. They then used that money for investment, but the money was not deductible. The money was borrowed to place into a savings account. Putting it in there removed the connection to the borrowing and the investment purpose

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I have never heard of that ‘rule’. I have helped clients purchase apartments/units with 95% loans many times.

BTW, what is the difference between an apartment and a unit?

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I beleive so in both cases, unless you go through a divorce. May vary from state to state.

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Once you own a property, it is too late to transfer it to a trust. To get it in a trust, you must sell it to the trust. if you sell, then there is CGT and Stamp duty (not sales duty).

If you are planning on buying and selling, you might want to do one and then see how it goes.

I have seen many people with big plans who have formed trusts, then never used them. Things change, sometimes it is harder than expected, or family problems etc and no more are done.

On the otherhand, having a trust for the first one could save you thousands in tax, which should make up for the set up costs.

You will also have land tax and running costs.

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It will probably depend on how many deals you are going to do. If not sure, may be do one in your own name and see how you go. If intending to do many, then you will need a trust anyway, so why not get it right from the begining. Costs about $2000 to set it up with some advice.

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Funny enough one of my valuations come back today with the valuer saying the area is floor prone. The lender now wants a Section 147 certificate (this is NSW) to show how prone the area actually is. If it is more than 1/100 year flood, then the lender will not accept the security.

Haven’t previously come across this.

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Nathan, what state are you in?

If NSW, I suggest you sit down with a Lawyer such as Tony Cordato.

Bankrupts need a place to live too, but be careful. Bankrupts are bankrupt for a reason. Also, watch out on the money side, I beleive all of their income earned above a certain point goes to the Trustee for creditors.

have a look at http://www.itsa.gov.au

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I think some lenders will provide finance to current bankrupts if the finance is used to bring them out of bankruptcy.

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Banks only do valuations when you request more money.

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