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Hi Felicity. There is another one now! I think they are called “The Mortgage Insurance Company” or TMIC. The cover First Mac’s loans (and others maybe), and First Mac do offer low docs. So that may be another avenue for you!!
Terryw
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That’s it. The title is in the vendor’s name until settlement. This only occurs when the last payment has been made.
Terryw
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What does he mean by renovate?
I would be worried that he may botch something up. Would you insurance cover this sort of thing? If could work out really well if done correctly.
You could get him to sign an longer lease, but that would lock you in as well. You could always kick him out if he breaks the lease.
maybe you should talk to your solicitor about 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
Yes if you have a fixed loan, you can always increase your loan limit (usually would be at a different rate) with your existing lender. But sometimes you may have to go to a new lender unexpectedly. eg. you want to access the equity, but you don’t service with that lender.
Many loans are also portable. so you may be able to take your fixed home with you if you sell and buy a new property.
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
mainly CGT issues.
If you move out of your main home and rent it, you can still class it as your main home and claim the interest and costs etc. And it will still be CGT if you sell within 6 years of moving out. But you can only class one residence as your main one. If you move back in after say 5 years and then move out again, the 6 year period starts again.
I think it is section 118-45 of the ITAA.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Surrey
I recall reading something similar. There is CGT relief on the sale of business assets before retirement. There are limits in amounts and time limits as well. I think it has to be within a few years of retirement.
The concessions are available for commercial properties that are owned as part of a business. eg a hotel.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You never know when you will need to change banks. You may sell the property or you may want to refinance with another another lender in a year or so. I don’t fix any of my own loans anymore – after I sold a property and had a huge break cost of about $4000
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
Why aren’t you concerned with capital growth??? You won’t get very far without it!
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
Furnishing a rental property would greatly restrict the market of potential tenants. Most people would have their own furniture-I imagine. So what happens if you buy all this furniture and then can’t rent it furnished? You may have to move the furniture out into storage.
Actually this could work well, you could store all of these new applicances in your home. You would still claim depreciation etc as they were pruchased for your investment property!
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
State Revenue Office. If you take the deed there, they will stamp it on the spot.
In NSW the tax is $200 for a settled sum of $10.
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 can if they have broken the lease. Being late is probably means they have. CHeck with your agent.
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
check out http://www.strategicwealth.com.au/ for an accountant based in Sydney who is a trust expert.
Search the forum for more info on trusts. Its seems this topic comes up almost daily.
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 must increase the rent and/or decrease the costs.
You could do this by changing to IO (if not already), and adding value, adding another room, wrapping, lease optioning etc,
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 should be able to get a loan on the current value, even if higher than contract price. Hopefully it hasn’t dropped in value.
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
Make them pay for it!
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
And if you have to sell, it may be best to look at selling the one with the lowest potential capital gains tax – as long as this doesn’t leave you short.
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
Hi PA
Yes you have done very well for yourself. But selling will be costly – you have variouse fees and CGT etc.
Do you have any equity in your homes? Could you increase your loan temporarily while you get back on your feet? Please try to keep the payments on your loan up to date in case you wish to refinance. You will have to accept a higher rate if you don’t.
Are all of your loans IO? if not, you should look at switching to reduce the repayments.
Your lender may also be able to extend your loan (if PI) resulting in a lower repayment etc etc.
Good luck
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
Just imagine you had purchased a house in Sydney in 1970 for $20,000. You used an interst only loan of $16,000. If you kept rolling over your IO loan, then you would still owe $16,000. However compared to the current value of about $700,000 this is insignificant. In fact one year’s rent would probably be more than the amount owing.
By using an IO it reduced your repayments and you were able to buy 2 instead of one. You would be looking at about $1.3million in capital growth and equity.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why not. If it is positive cashflow in a good area, it would be a very good buy. usually anyway!
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
If they ATO thinks you are doing it as a business, then technically you would have to pay CGT on the first house!
But realistically you should be able to do a few, and if picked up could always argue your case – had to move due to bad neighbours, work, changing family circumstances etc.
But why sell? Why not keep?
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
