Some banks will take valuation price for LMI calculation purposes. One of my clients was able to get a 95% loan with no mortgage insurance because the property valued at about 20% more than pp.

Terryw
Discover Home Loans
North Sydney
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There is still plenty of cheap stuff around in Sydney. You can get units in Campbelltown for $150,000.

Terryw
Discover Home Loans
North Sydney
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There’s not much he can do really. If he hasn’t got much of a deposit, then he won’t be able to get a loan. he will need at least 10% (plus costs) for a low doc loan (with a very high rate). I would suggest vendor finance.

Terryw
Discover Home Loans
North Sydney
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It should make a difference on deductibility of interest if you go as your broker suggested (If I have read you posts correctly). As Simon said, if you withdraw equity from you IP, you won’t be able to claim this extra interest as it is for domestic purposes.

It may be a good idea to rent for 6 months anyway. Since your from out of town, it would be good to get to know the area.

Terryw
Discover Home Loans
North Sydney
[email protected]

Found it. please have a look at
http://law.ato.gov.au/atolaw/view.htm?locid='CGD/TD51/NAT/ATO‘

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?

1. Whether a dwelling is a taxpayer’s sole or principal residence is an issue which depends on the facts in each case.

2. Some relevant factors may include, but are not limited to:

(i)
the length of time the taxpayer has lived in the dwelling
(ii)
the place of residence of the taxpayer’s family
(iii)
whether the taxpayer has moved his or her personal belongings into the dwelling
(iv)
the address to which the taxpayer has his or her mail delivered
(v)
the taxpayer’s address on the Electoral Roll
(vi)
the connection of services such as telephone, gas and electricity
(vii)
the taxpayer’s intention in occupying the dwelling
The relevance and weight to be given to each of these or other factors will depend upon the circumstances of each particular case.
3. Mere intention to construct a dwelling or to occupy a dwelling as a sole or principal residence, but without actually doing so, is insufficient to obtain the exemption.

Terryw
Discover Home Loans
North Sydney
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Media beat up? There are heaps of shoky brokers out there, so maybe it is not entirely a beat up. But then again, I have never received an overseas trip! We do get pens and wine openers sometimes.

Terryw
Discover Home Loans
North Sydney
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The loan would need to be in the same names as the title. You could both be on the title and just have an agreement to borrow the money for the deposit off you friend, or you could go on the title alone and then have a side agreement with your friend. – But you would be taking all the risk.

Terryw
Discover Home Loans
North Sydney
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It may be illegal to charge a fee for finding properties in certain states, if you are not a registered RE agent. Just ring the Dept of Fair Trading in your state to find out.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Shirley

I read this too. I don’t know why he would write that-puzzling.

Having a large capital gain in a trust would be the best place to have it. You can still distribute it to yourself if need be, but circumstances change yearly, so it may be best to keep your options open.

I think some financial planners and accountants just frown on mums and dads having trusts.

Terryw
Discover Home Loans
North Sydney
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Dave

That may be so, but the wrapee would not necessarily know until too late. If the wrapper has no other assets, then the wrappee could be in trouble financially.

Terryw
Discover Home Loans
North Sydney
[email protected]