It may be difficult to open an account because of the 100 point ID requirement. However, many Aussie banks have branches overseas, so they be able to help. eg ANZ, NAB,

Terryw
Discover Home Loans
North Sydney
[email protected]

I am no accountant (so why am I answering this?), but would think that any expenses currently incurred may be able to be claimed at 50% of cost (as you have a tenant), or it may be better not to claim at all as you may lose your PPOR CGT exemption. But once you move out, then any expense incurred would be 100% deductible.

The air-con would be a depreciatable item, so only the value would be claimable. The labour may be able to be claim against CGT if you ever sell. maybe?

Terryw
Discover Home Loans
North Sydney
[email protected]

I’m with Mel. You could just start out with yourself as trustee. Cost to set up would be around $1000 and running costs not much at all. Maybe $60 extra per year for accounting.

Terryw
Discover Home Loans
North Sydney
[email protected]

Aparently there is a way to do this. Chris Batten is a good account and has some infornation avialable at
http://www.chrisbatten.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

I can recommend: Bruce Whitting of Mint Group. http://www.mintgroup.com.au he is in Sydney.

or

Dale Gatherum Goss in Melbourne, http://www.gatherumgoss.com.au

and there is, Nick ??? of Strategic Management ??? (can’t remember the details, but he knows his stuff).

Terryw
Discover Home Loans
North Sydney
[email protected]

NATS

If your sister has too much property exposure-in terms of loans, then selling half won’t really solve anything because she would still would be liable for the whole debt. ie if you were to stop paying, she would be liable.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t think there is anything wrong with having a mailbox instead of an office. Many people can work at home these days, and don’t have a need for an office if they don’t have walk in customers.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t think you can simply transfer without stamp duty. (If it was between spouses in a divorce settlement, then it may be possible).

To makes things worse, your brother may even have to pay capital gains tax as well. Maybe he should have bought it as trustee for your parents.

It may be better just to leave it as it is?

Terryw
Discover Home Loans
North Sydney
[email protected]

Liberty Finance used to have a 110% and 105% loan available (on the one security), but it had many conditions and was only for high income earners as it required extra repayments in the first few years. But they have scrapped this loan now (maybe due to a perceived lack of growth in commong years).

There are still 100% loans available, but unlikely for a a block of flats.

How many units in the block? if it is 4 to 6 or less, then you may be able to get away with a ‘normal’ loan, any more and it was probably be classed as commerical.

Also location may be a limiting factor, if in the country, for example, the LVR may be lower.

If you could get 80% LVR, you would need $120,000 deposit plus costs. If you have $140,000 equity available you are nearly there. Also, how did you calculate your equity? Did you leave a buffer, as you could only borrow up to 90% of the value. And are you sure about your values? The 2 properties may be worth more than you thought.

So you are nearly there? Do some more negotiations, ask the vendor to leave some money in the deal for example.

Terryw
Discover Home Loans
North Sydney
[email protected]

Credit cards can be very good or very bad, depending on how you use them.

It is a good idea to have access to a card with a large limit for emergencies. I know someone that made some miscalculations with her home loan and was about $10,000 short only days before settlement. She used a credit card for this shortfall. Standard rates for short term money lends are about 6% per month, so 17% for a credit card isn’t too bad.

But beware, credit cards will decrease your borrowing capacity as lenders take into account the card limit whether you pay it off fully every month or not.

Terryw
Discover Home Loans
North Sydney
[email protected]