Buy what you think will make you the most money.

If you have $40,000 deposit, then you can’t buy too many. maybe $400,000 worth of property – if you have the income to qualify for 95% loans.

There are not many cashflow positve properties in sydney, but have seen at least 3 different people buy them this year.

Positive cashflow will help you qualify to service the loans, but you will still need to come up with deposits.If your properties are growing, then there will be no equity to leverage off into more properties.

Terryw
Discover Home Loans
North Sydney
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I agree with Scott. In the long run both properties should be good, especially the Abbotsford one. It is a matter of if you can handle the repayments. What can you do to increase the rent? And can you get a 221D to reduce your wekkly tax bill. Have you got depreciation schedules done? All up when these tax deductions are taken into account, it is probably not that bad.

Terryw
Discover Home Loans
North Sydney
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It looks like the small print has you.

Just send a fax advising the former agent you are withdrawing the right to sell your property.

Terryw
Discover Home Loans
North Sydney
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Surely, if you have an income, you could borrow. Even if you are unemployed you could borrow if you had this much equity. As a last resort, you may be able to get ‘private’ type loans. These are around 8%+ interest, but very little questions are asked. For security located in major cities, you should be able to get 70-80% LVRS. It owuld be harder in Tasmania tho.

Terryw
Discover Home Loans
North Sydney
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These aren’t good investments in my opinion. But others disagree and there have been a few thread in the last 2-3 months. Do a search and you should be able to find them.

Terryw
Discover Home Loans
North Sydney
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G7,

With property the ATO considers a sale to occur when contracts go unconditional, I haven’t kept up with CGT and wraps, but my understanding is with a wrap contracts are unconditional when or before the wrappees move in, and therefore CGT may be payable that year. If contracts are not exchanged or unconditional, then the wrapper does not have a contract with the people who will be buying their property, and they could simply walk out anytime.

Michaelk, I know a good way, try using a lease option instead of an installment contract.

Terryw
Discover Home Loans
North Sydney
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Why sell?

What about borrowing against your increased equity so you can keep your house and still buy investment properties?

Terryw
Discover Home Loans
North Sydney
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Hi Richmond,
Actually Hybrid trusts can’t really distribute losses, they work by the trustee borrowing to borrow units in the trust. This borrowing is in their personal name and so they can claim the interest against personal income. But it does work out like the trust is distributing the loss.

Terryw
Discover Home Loans
North Sydney
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I agree that you can make a higher return in business, but you can also lose it very quick. I think it is good to make you money in business and hold your wealth in property for asset stability and good long term growth.

Terryw
Discover Home Loans
North Sydney
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As far as I know this would be illegal in Victoria. Unless you have a written agreement for that peron to be acting on your behalf before they signed the contract, it would be fraud.

To confirm, just ring the state revenue office and ask them over the phone – without names.

I think you would be required to pay stamp duty on the value of the project at the time you sign. The person you are buying from would also have to pay stamp duty on the value at the time they signed.

However if you had a prior written agreement, then yes they may avoid stamp duty and you would save stamp duty. It would be like you were buying instead of them.

Terryw
Discover Home Loans
North Sydney
[email protected]