Try http://www.strategicwealthmanagement.com.au

Terryw
Discover Home Loans
North Sydney
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Another option. What about hanging on to it and keeping it for capital growth? It must not be negatively geared too much after tax deductions?? You could also probably get a much low interest rate than 7.5%.

If you want to help the tenant, you could also offer vendor finance – lend him the deposit and let him get the loan in his name.

Do you know why can’t he get a loan? on an income of $80,000 he could probably borrow up to about $500,000.

Terryw
Discover Home Loans
North Sydney
[email protected]

This means that you are going to have to lend them the other 50%. Whether it is worth pursuing or not will depend on many other factors such as:
– how soon you need the other 50%
– The price they have offered (should be more for the trouble)
– The security for your 50% – eg second mortgage.
– The interest they will pay you for borrowing your money, and the terms – ie how long, PI or IO etc.

So it may be an option, but then again you may be able to find someone able to pay full price straight away.

Terryw
Discover Home Loans
North Sydney
[email protected]

I think Rob misunderstands my position.

I am a fan of LOCs, but am also a fan of offsets. I think they both work well and I use both myself.

LOCs are good if you want to ‘borrow’ money to pay investment expenses.

Offsets are good if you have spare cash and want to store that for later use while saving interest.

I wouldn’t advocate using a LOC if you are going to have your wages, rents etc paid into the account. Better to use the offset. I like LOCs to be used on unused equity.

With ANZ, the LOC does have a yearly charge, but if you are on hte professional package, it would be the same rate at the term loan with only the package fee.

Terryw
Discover Home Loans
North Sydney
[email protected]

rmittlal1.

I beleive you accountant could be incorrect – with 4). If you move back into your original house, then you could not claim this at the same time as you were claiming the other one – except for a short period (6 months) where you can claim two properties at the same time.

Terryw
Discover Home Loans
North Sydney
[email protected]

of course, if your property has gone up in value, you may not need other security now.

Terryw
Discover Home Loans
North Sydney
[email protected]

Dave

A trust may work, just aware that with trusts losses cannot be distributed. The ATO has also issued a ruling on renting your own house from a unit trust. They don’t like it. But it can be done.

Another option is to sell your existing house to a trust, or you could buy your partner’s share. Either way funds will have to be borrowed and this will make the loan tax deductible. Stamp duty would be payable though.

Terryw
Discover Home Loans
North Sydney
[email protected]

It is the only tax free asset!

A good strategy is to have botha main residence and rent your yourself while renting out your own home.

Terryw
Discover Home Loans
North Sydney
[email protected]

Sounds good if there is potential Capital growth as well as high income.

Terryw
Discover Home Loans
North Sydney
[email protected]

Good work. You can only work within the system, you just have to try to learn how to make it work in your favour. I think you will find that when you get it revalued, after the valuer finds out the purchase price, it may not come in as high as the initial valuation.

Terryw
Discover Home Loans
North Sydney
[email protected]