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Depending on the LVR, Westpac often don’t even order valuations, but do an in-house valuation using comparable sales. Maybe you could dig up some comparable sales, and ask your broker to try for a revaluation, a small increase maybe possible.
Terryw
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There is no amount of time listed in legislation. Do a search on the ATO site and look for “CGT Determination Number 51. Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer’s sole or principal residence?”
This may help.
Terryw
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Nope. Not in Australia anyway.
Terryw
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Yes, you should insure after exchange of contracts.
Terryw
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Deny it was you!
Terryw
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That’s a big thing to leave out!
Terryw
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Not really.
You will have to pay out money in stages, to council, builders etc, so the lender will have to advance you money in stages. Interest will accrue on the money advanced on the daily balance.
The only other way to do it is to capitalise the interest so you will not have to pay anything until completion. But this will result in a much higher interest bill (as you are paying interest on interest) and you must have much more equity in the project for the lender to agreee to this.Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
JLC, Someone else asked this questionr recently. The title is in your name until the wrappee makes their last payment to you. Your loan is securred by the proeprty.
I tend to agree with Calron. I have done 6 warps and would probably not do anymore. The cashflow sounds good in theory, but in reality there is a high opportunity cost as you are not gaining any of the growth and you could possibly be investing elsewhere with much higher returns.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Why do you think this property is bad? Just because it is negatively geared?
Selling will cost money – agents fees, CGT, legals, and then more fees on the property you buy to replace the one you just sold.
Has this property gone up in value? Do you think there are prospects for it to go up in the future? If so, it may not be such a bad investment.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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You don’t need to be employed if you have enough of a deposit – but it would help greatly.
Terryw
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Another option is to sell your property to your trust or spouse. Stamp duty may be payable. But you could take out a loan to buy an investment, and the funds released could go onto your home home.
Terryw
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Billy
There is no easy answer. If you want multiple properties, you need multiple deposits. Getting a large deposit from the wrappee will help.
Terryw
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Landt
I think it depends on what sort of payments you are claiming. There is not much counted for the Family payment, but the are much stricter for everything else.
Terryw
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The good ones should be busy, but I know what your saying.
Terryw
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I don’t think you can claim travel expenses for a property you didn’t own at the time of the expense.
Borrowing expenses can be claimed over 5 years, not all at once.
Terryw
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Also consider what will happen in the future. You may gain some extra money now by saving tax, but in a few years you will be paying extra tax when the property becomes cashflow positive. And even worse, he you were to sell you would have to wear the whole capital gain yourself.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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The only low doc lenders that will not lend to a trust are:
ANZ
ING
SuncorpLow Doc Lenders that will:
Bankwest
Macquarie
Adelaide Bank
Integris
etcThe problem you may be facing is that most low doc loans are mortgage insured and the mortgage insurers are picky about location. Therefore it is probably the area that is the problem.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You probably should have been notified about the default at the time. If not, then the lister may have not followed the correct legal proceedure and you could get it removed. You could go to a solicitor and ask them to draft a letter to the lister threatening to sue if it is not removed. But this may end up costing you more than the default amount.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I just purchased Kevin Young’s book. The chapter on
“Positively Geared is Positively Dangerous” is only 2 pages long!He is basically warning against buying cheap, old, rural properties with no depreciation benefits, and no prospect of growth.
Of course he is in favour of positive cashflow property if it could meet all of their other requirements such as being in a good growth are etc.
Sounds like good advice to me.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I just came back from the Property Expo in Sydney and there was a buyers agent there who offers to find cashflow posiitve property for people for a fee. I can dig thru my bag of info and find the name if you need it.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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