There will be possibly exit fees, deferred establishment fees and fixed break cost fees to exit. If fixed rates have fallen, then you could be up for huge costs to exit a fixed loan.

eg I had a $80,000 loan, fixed, sold the property and paid nearly $4000 in break costs!

Then there will be new fees for the new loan, application fees etc. and a few small fees such as Title searches etc, maybe even LMI again if you go over 80% LVR. If you increase the loan size, you may have to pay stamp duty on the increase portion as well.

I would just ring up your lender and ask for a estimate of the exit fees if you paid out the loan today.

Terryw
Discover Home Loans
North Sydney
[email protected]

This would only work if the seller had clear title to the property, ie no loan, owning it outright. Otherwise the vendor could not transfer title without paying out their existing loan.

So I would think this situation would be rare, but possible.

Another way to do it, would be to get a loan, and then lease the property to a tenant and sell them an option to purchase as well. The title would stay in the seller’s name. This is legal, and I have done 3 of these in Victoria myself.

Terryw
Discover Home Loans
North Sydney
[email protected]

Section 118-145 of the Income Tax Assessment Act allows the main residence CGT exemption while the taxpayer is temporarily abscent for up to 6 years.

Terryw
Discover Home Loans
North Sydney
[email protected]

Usually if you do not settle on the required date, they will give you a few days, and then issue you a formal notice to complete giving you 14 days in which to settle. So you have some time up your sleeve there.

Terryw
Discover Home Loans
North Sydney
[email protected]

The best way to do renos is to get a LOC on other properties, so you can pay cash for these properties, do them up and sell them – avoiding high discharge fees.

Terryw
Discover Home Loans
North Sydney
[email protected]

louroza, and don’t forget you will need to pass serviceability as well – ie have enough income to qualify.

Terryw
Discover Home Loans
North Sydney
[email protected]

Milk comes from cows, Steve is not a cow. He is a soyabean!

Terryw
Discover Home Loans
North Sydney
[email protected]

I am not an accountant, but ….

1) A discretionary or a hyrbid trust. or a unit trust with units held by a discretionary hybrid trust etc

2) saves tax and for asset proection

3) yes, probably all except your final main residence

4) you?

5) Trust deeds can be pruchased for as little as $175. Some states also charge stamp duty. When doing you tax return, you will have extra expense of doing a return for your trust. This could cost $100+, depending on what assets the trust has.

6) tax savings and assett protection and flexibility.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

What sort of loan you have has no bearing on whether you can claim the interest or not. I would think if you get the FHOG, you could still rent out some rooms and claim a portion of every cost, including interest and depreciation BUT you may end up paying CGT when you sell.

Maybe the perion involved could rent out some rooms for 6 months while living there to legally qualify for the FHOG and to then move out and rent it completely as an IP. But there are also large CGT implications here too, because if he/she lived in it for 6 months intially as their main home and then rented it, they could still calim it as their main home for a period of 6 years while renting it out. So if they sold dduring this period, there should be not CGT. Having only a portion of it as you main residence, may mean only that portion is able to be claimed as their main residence during this period.

Better talk to an accountant about this before you do anything.

Terryw
Discover Home Loans
North Sydney
[email protected]

Off the top of my head, probably the main ones would. Some may even require 6 months if your previous job was in a different industry. Some low doc/no doc loans do not have these requirements though.

Terryw
Discover Home Loans
North Sydney
[email protected]