Mel, that is my understanding and experience too. (I tried to post earlier but couldn’t due to that flodd control thingy)

Terryw
Discover Home Loans
North Sydney
[email protected]

John. Here is a good site regarding depreciation by a quantity surveyor:
http://www.washingtonbrown.com.au/site/depreciation.cfm

Terryw
Discover Home Loans
North Sydney
[email protected]

As Mortgage Hunter said, each bank has different criteria which is not always very trasparent. Brokers have access to banks excel spreadsheet calculators, but unfortunately we cannot give these out.

As a guide, Most banks take 100% of income, 80% of rental income into account, and then a living allowance which varies depending on how many dependents you have, your curretn repayments for exisiting loans and then the repayemnts on the loan you are applying for at an interest rate of about 1.5% above current rates. They may also make this calculation PI even if you are paying IO. And they will take 3% of your credit card limits as a monthly expense-whether you pay them over every month or not.

Terryw
Discover Home Loans
North Sydney
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Yes I purchased it a few years ago. It works ok, but does take a bit of effort entering all the data. I didn’t find any mmistakes on mine, but didn’t end up checking all properties because it takes so long to enter.

The trouble is you need a special code to operate it, and if you re-install it you have to fax away for a new code. I reformated my computer, and just never got around to asking for a new code.

Terryw
Discover Home Loans
North Sydney
[email protected]

Cornel

Since you have been living in your property, you could probably continue to class it as your main residence even tho you are living elsewhere. you can do this for 6 years as long as you do not class any other property as you main residence at the same time.

You could withdraw equity form you property and put it in the bank, but why? You would be lossing out as you will be charged around 7% interest, but will only be getting around 5%. You may be better off to leave it there until you need it. maybe set up a redraw facitlity now to get it all ready. You may also not be able to claim the extra interest on this as a tax deduction-depending on what it is eventually used for.

You will not be charged any tax on the equity that you borrow because it is not income, just borrowings.

Terryw
Discover Home Loans
North Sydney
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No losses can be distributed from a trust, including hybrid trusts. The losses will be calcuated each year and can be rolled over and overset against future income.

With hybrid trusts, there is a way around this by the unit holder borrowing to by the units in the trust. That way the ‘loss’ goes to the person rather than the trust. Since the trust is not paying interest, it would probably make a profit, this could even be distributed to someone other than the unit holder.

In your situation, if you have other investment income outside of the trust, then this can’t be offset against a loss in the trust, but may possibly be reduced by using the hybrid trust. If you only have losses, then these will just be rolled over.

That is my understanding anyway.

Terryw
Discover Home Loans
North Sydney
[email protected]

Any trust can carry losses-I beleive indefinitly until a profit is made.

Troyid, maybe you company shares can be owned by a discretionary trust. All profit could then flow to the trust and from there distributed elsewhere at the trustees discretion. (possibly with franking credits).

Terryw
Discover Home Loans
North Sydney
[email protected]

I beleive GE mortgages offer a 40 yr PI loan.

Terryw
Discover Home Loans
North Sydney
[email protected]

Thanks guys!

Terryw
Discover Home Loans
North Sydney
[email protected]

From the wrappees perspective, I beleive wraps are great. Many people would be paying much higher rates and huge exit fees if they went to a non conforming lender.

From an investors perspective, I have done a few wraps and probably wouldn’t do any more. The returns are not worth the effort and hassle. It also hurts your borrowing capacity by using your resources which could be invested elsewhere for higher returns.

Terryw
Discover Home Loans
North Sydney
[email protected]