hwd007

Good try again. You can sell it for $1 if you wish, but you must pay tax and stamp duty at the market value.

Terryw
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Red

I think with a Hybrid trust, the unit holder can borrow to buy the units, and the interest on this is able to be offset against the unit holders other income. check out http://www.chrisbatten.com.au

Terryw
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There are a lot of Mortgage Brokers out there that don’t know what they are doing. There are many lenders that offer 90% loans without genuine savings. And I know of one with 95% LVR with no genuine savings.

Terryw
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i used to work in Japan, and I know the NAB and other Aust banks will actually lend you money for property in Aust in Yen at Japanese interest rates (1 to 2%). But you must be working over in Japan earning yen. I think there are a few people using these Yen loans.
Over the past few years the exchange rate has gone from about $1=60Yen to $1=80Yen.
So if you had taken out a $100,000 loan it would have been 6,000,000 Yen which is worth $75,000 now. I suppose if you are earning Yen it doesn’t matter so much.

Terryw
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Hwd

Sure it is legal to pay off someone else’s debt. But in Australia, you can’t assume someone else’s loan. (I think you can in America).

And it is legal to sell for undermarket value, but you must pay stamp duty and CGT at market rates-otherwise it is fraud.

And I don’t knwo about you example above, I don’t think it would make a difference in cashflow etc.

One good reason to pay off one loan and increase the other would be get completely clear the mortgage on one and get the title deeds back. it give the bank less security.

Terryw
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Janine

Maybe you could buy property thru your own super fund?

Terryw
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Caz

A few years ago I sold a negatively geared property to use the proceeds for wraps. I now regret that as I would have made more money by hanging onto that property.

Once you sell a property you lose any future capital gain. Think what it will be worth in 10 years time. And think of hte costs – CGT, Real Estate agents fees, legals etc.

There are ways to get that $4000 even if you aren’t working. Since it is a small amount and you have paid your loan down a fair bit, some banks will just give you a top up without the need to show proof of income or submitting a new application. A friend of mine, not working, got a $30,000 increase from ANZ recently, all it cost was $300.

Your LVR is now around 66%. BTW if you have been offered $95,000 it is probably worth much more.

BTW, for future reference, With Low Doc loans you can go up to 80% LVR. (or 90% if you are prepared to pay 10.15%). You can self declare your income.

Terryw
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I know how you feel.

If you are going to do it, plan carefully. Some banks require payslips no more than 2 months old, a letter would help (including wage, time there, stating you are full time and not on any probabtion etc). You will be getting your group certificate soon,so that should be ok. But when you fill in the application you will have to declare if you are working or not. Somebanks actually ring your employer to check.

After 6 months when you go back to work will you be going back to the same company (not if it goes good I guess). If it is the same industry, may be ok with a different employer, but if you change industry if may be harder to get a loan for 3 months or so. It would be good if you could take some sort of leave (unpaid leave?).

Good luck and let us know how you go.

Terryw
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They will go on the 8K. But with certain banks there are certain things you can add back such as depreciation on equipment, some interest etc. non recurring expenses may also be disregarded.

You can always go low doc. Generally around 80% LVR max.

Terryw
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hi Stuart

I must disagree with you on this one.

Section 118.145 of the Income Tax Assessments Act 1997 (http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html) allows you to be temporarily absent from your main residence for up to 6 years, and to still claim it as you main residence. You cannot have more than 1 main residence at the same time (except for a period of 6 months while you are in the process of moving – section 118.140).

This works well for people working overseas or for people who rent temporarily somewhere else.

So you can rent out your house and still claim a CGT exemption if you don’t have another main residence at the same time and the period is less than 6 years. The 6 years starts again if you move back intothe house.

Here is an actual example from the link above.
Example: You live in a house for 3 years. You are posted overseas for 5 years
and you rent it out during your absence. On your return you move back into it
for 2 years. You are then posted overseas again for 4 years (again renting it
out), at the end of which you sell the house.

You have not treated any other dwelling as your main residence during your absences.

You may choose to continue to treat the house as your main residence during both absences because each absence is less than 6 years.

You can make this choice when preparing your income tax return for the income year in which you sold the house.

Ps Confirm this with your accountant.

Terryw
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