Snowflake,

Seems like your with ANZ now and want a loan increase. If you refinance with another lender now, you will be fine as you signed before the DEF come in. ANZ and Westpac have recently introduced these DEFs as they apparently do not make any money on loans that last less than 3 years, so they want to recover this and also encourage people not to leave.

It will only apply to new loans, so you have the choice of either accepting it or going elsewhere. There is not much you can do. They are unlikely to waive it.

ANZ loans are portable, so you could always sell, keep the loan, and then substitute a new property. That way you can avoid the fee like Lifex suggested. The loan can generally be kept open for 3 months while you search for the next property.

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Yes. You set up a hybrid discretionary trust. You issue units to yourself. You then borrow money from the bank to buy these units using the property owned by the trust as security. The trust will be giving you income, so they are income producing units. Therefore the interest on the loan you used to buy these units will be tax deductible.

All other expenses will need to be claimed by the trust.

please confirm this with your accountant.

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The clauses should be in your contract – eg subject to finance approval, building inspection etc. I think there is a cooling off period in most states too.

You can only put another buyer in your place, you would be required to pay stamp duty again. There MAY be ways around this by adding “and/or nominee” after your name, but this would depend on your state and the way it is done – see a solicitor first.

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I was going to say the same thing as Westan. Companies are not good for holding assets because of the CGT rules. Look at discretionary trusts instead – including hybrid discretionary trusts.

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Hi

You won’t find any reliable figures for future growth until it happens!

Have a read of Peter Spann’s book, he outlines his research methods there. He basically looks for a suburb that has had consistant grwowth and hopes the consistancy is consistant!

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The trouble is if you order your own valuation from a valuer on the lenders panel, the lender will often not accept that. They must ‘instruct’ the valuer themselves.

But once you have one done, then the valuer would look silly valuing it down a few days later – but it does happen.

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Kiwi

I am a bit confused. I have sold a few options over property, but never assigned an option or onsold a property this way.

Lets try to spell it out in simple terms.

You find a property, and instead of signing a contract or sale, you buy an option over the property. ie sign an option contract. This contract probably allows you to assign the option. Is this correct?

You then go and find someone who wants to buy the property. You then get them to sign a constract of sale with the original vendor. They don’t see your price as you have not signed this contract. Your option contract would have the price at which you could buy the property for. Since your option contract allows reassignment, you tell the orignal vendor you have assigned the option to Mr X, and Mr X will be the one signing the contract of sale.

Sounds good so far. I beleive that as you have an option over the property, then you have a legal interest in it, and would therefore not need any licencing (RE Licence etc) to sell this property.

Is that how it works Richard?

ps Kiwi, are you talking about Australia here or NZ. If Aust, which state?

pss. Hope you don’t mind all these detailed questions. I am not trying to be smart, just trying to figure out something I have never done before.

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Hi Westan

Yes, there is a bit of a downturn, but more people are refinancing these days. Business is still good.

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Are these people mortgage brokers? If that is what your husband is going to do, bear in mind it takes ages to get paid for loans, so he may be without an income for about 3 months. It could also take a long time for him to build up a decent income in the industry.

However, it may be worth a try. If it doesn’t work out, he can always go back and do a similar job to what he is doig now.

It may also be possible for him to keep his current job and start off in the broking part time and gradually ease into it.

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