Forum Replies Created
Have you got a 100% offset account linked to the IP loan? that would be another option.
Terryw
Discover Home Loans
North Sydney
[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
If your IP appreciates to $200,000, you cannot borrow $200,000 against it, but only 80 to 90%.
There is nothing stopping you puttting htis extra money into your home loan. However the interest on this portion would be be claimable as it relates to personal expenses.
You could use this money as deposit on another IP, but only the interest portion would be deductible.
Terryw
Discover Home Loans
North Sydney
[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
Hi.
Yes there are lenders that will be able to do that, but there would be exit fees on the loan if paid out in the first 3 years.
Terryw
Discover Home Loans
North Sydney
[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
Sorry, the correct address is http://www.gatherumgoss.com/
This book, and another, can be found under shopping on
http://www.gatherumgoss.com/shopping.htmTerryw
Discover Home Loans
North Sydney
[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
I am not sure about that. If you use a LOC to buy a property OS, then the expense would be here, but the income would be over there. It may depend on the reciprical tax arrangements with that country, and/or if the income is declared in Australia.
Terryw
Discover Home Loans
North Sydney
[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
I have used a buers agent in the past. They can save you a lot of work, but you have to pay for the privilage of course.
An agent will do anything possible to sell a proeprty quick, and that would probably include letting any buyers agents that they know about the property as soon as listed. (They would also probably lie to their own grandmothers if they were in the market for a house.)
Terryw
Discover Home Loans
North Sydney
[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
Of course you can buy overseas.
If you have borrowed against the equity of your home, maybe you have a LOC setup. If you have a LOC, you may be able to pay cash for your overseas property. If no Australian bank will lend you money, try banks in the country where the property is located.
Terryw
Discover Home Loans
North Sydney
[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
What State they are in doesn’t matter.
If it is an investment property, then probably they will have to pay CGT. Also agents fees, legals etc
Terryw
Discover Home Loans
North Sydney
[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
Sure. You could (try to) negotiate that with the selling agent. why not.
Buyers agents do that sometimes. ie they get half of the listing agents commission, and reduce their fee to the buyer accordingly.
Terryw
Discover Home Loans
North Sydney
[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’ll be paying for it either way.
eg you use mum’s house as additional security to the new IP and borrow 100% of the new IP.
or
You take 20% from the LOC and then get an 80% loan, you loan on the IP would be smaller, but you would also be paying interest on the 20% deposit from the LOC. So all up you have still borrowed 100% of the IP.
Personally I beleive the second method is more flexible as it leaves the securities as un-crossed.
Terryw
Discover Home Loans
North Sydney
[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 can get loans wihtout working, but interest rates are higher and LVRs lower, but you could go up to 80% LVR using 1st and 2nd mortgages.
Terryw
Discover Home Loans
North Sydney
[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
Hi
I am actually sharing an office with a Certified Financial Planner (who was recently judged best in the state by IFA and Macquarie Bank). He runs a fee for service practice (which means he rebates any commissions) and therefore has no bias towards any asset class or financial products. His name is Sean and his email address is [email protected]
Terryw
Discover Home Loans
North Sydney
[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
Penguin
For low docs, they generally require 20% deposit and an income declaration. No checking is done to verify your income (usually). You still have to quote an income and if it is not high enough, then you will not pass (and you don’t get a second chance).
But they often require proof of your rental income, and copies of your credit card statements to verify the limits, copies of rates noticies to prove you own other proeprty (if applicable) etc.
Terryw
Discover Home Loans
North Sydney
[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 could always borrow the deposits. you still have to pass serviceability tho.
Terryw
Discover Home Loans
North Sydney
[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
Yep, you better use a lawyer for any contract you do – to protect yourself.
These documents are not given out freely, but aparently some can be found on the net somewhere (I don’t know where).
Terryw
Discover Home Loans
North Sydney
[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
A trust may not work with Centrelink.
They now deem the assets of the trust to be your own personal assets if you control the trust. I think they define control as being the appointer or the trustee.
The same for companies.
I would just give centrelink a call and get some info sent out.
Terryw
Discover Home Loans
North Sydney
[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
I beleive that the ATO gives the tax payer a letter to take to their employer. This letter outlines how much tax is to be taken out.
If the wage is the same then the new employer would be able to work off this letter.
Terryw
Discover Home Loans
North Sydney
[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
Citibank has a good unsecured LOC, called ready credit. rates are high (17% ish), but you don’t get charged until you use the money, so it would be good to get this facility ready just in case. Personal loans are a lower rate, but may have applicaiton fees and other monthly fees (sometimes).
Just be aware that having these loans will affect your serviceability.
Terryw
Discover Home Loans
North Sydney
[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
If you have been doing this for longer than 2 years, then the bank will simply average your income (assuming you have lodged tax returns). You are just self employed just like a carpenter would be. However, If your income is fluctuating a great deal, they may only go on the lower figure. And it may be easier just to go ‘low doc’ as Simon suggested.
Terryw
Discover Home Loans
North Sydney
[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
Steve was buying at $40,000 a few years ago (according to the book), these properties have probably trippled in value to about $150,000 now. Phenomenal growth was occuring during this time.
Terryw
Discover Home Loans
North Sydney
[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
