The middle letter would be for “Discipline”

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

It will be vary costly and messy for her to sell. A 106% loan may be an idea if you qualify. Hopefully you can add value quickly and also get some natural capital growth, allowing you to refinance within a short time at a cheaper rate.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Yes you can give the vendor the offer directly. Just bypass the agent.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Let me get my head around this.
1) Mother in law sell you her house for less than market value.
2) You let her live in it, cheap rent? free rent?
3) If you sell in 10 years, you pay out the loan and give her the proceeds?

Is that what you meant?

My response:
1) that’s ok, but this may effect her pension, if she has one. And will involve payment legal costs, and stamp duty by you.
2) you may be required to pay tax on the market rent. But this shouldn’t matter too much if you have a mortgage to offset it.
3) You will have to pay CGT (if not your residence). Gifting money to her should have no tax consequence, but would effect any pensions.

Sounds like a costly exercise. What about if she just loaned you the money initially, or let you use her property as security.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Rob,

Did you see the ad in SMH on Sat for a BDM position (sounds almost sexual!) with Bank West?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Rob was posting while I was typing (yes it took me 20 min to finish). But I would like to add, if an offset is used, for the purposes of calculating trailing commission, most lenders calculate the trailer based on loan amount less what is in the offset account.

So brokers recomending this strategy are not doing it just to increase commissions.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Clients will also have to pay LMI. I guess you can’t have every thing.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Off the top of my head, Bankwest Lite (low doc) does not have exit fees.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Markus

I have heard an accountant suggest a new structure for short term project like renos. This is because the ATO could class you as a ‘trader’ ad the properties as trading stock. If this happened you could lose access to the 50% CGT discount. You would not want to lose the discount on the buy and holds, so a separate structure would help ensure that doesn’t happen.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Possibly nothing! if you move out of your main residence, for up to 6 years, then you can still treat it as your main residence, even if rented. If you sell wihtin 6 years of moving out, then you can pay no tax.

If you are claiming Brisbane as your main residence, then you have to chose which one you want as your main residence during the cross over perio. You can only have one main residence, except for a 6 month period when you can overlap.

If the above doens’t apply then:
(Value at date you moved out) – (Sale price) = profit.

From this profit you can deduct costs such as stamp duty, agents fees etc. And you must add back any depreciation claimed. = Net profit.

If you have held it more than 12 months, then this net profit is divided into 2 (ie 50% discount).

This is the taxable capital gain.

This taxable gain is then divided into portions as per ownership. Usually 50/50.

So 50% of the CG goes into the husband’s salary and 50% onto the wife salary.

You then pay income tax on your new yearly salary.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]