Yes, souds reasonable.

Why not offer to ‘rent’ the place prior to settlemennt if the tenants were to move out.

You dont actually ‘use’ equity but borrow money so the rate will depend on the bank and loan product.

I agree that costs for others won’t be deductible. I haven’t heard anyone suggest changing ownership just so that a trip could possibly be claimed…

That canberra story doesn’t make sense Banks generally do not care who the seller is, it may be the valuer who wanted to know for valuation reasons. The agent would be clearly on the contract of sale and whether a buyers agent was used or not sure be of no concern to a lender.

I have bought about 1o properties through buyers agents with fees of around 10k. It can be worthwhile on several levels – time, negotiating and knowledge. A very small percentage saved with negotiating can pay their fee for example.

JBC wrote:

Hi guys,

As I understand the tax implications, if I do the work now it would not be considered maintenance and therefore I could not claim it as a tax deduction. A colleague suggested waiting 12 months to do the work and renting it as it is for the time being.

Waiting would not change the items into deductible.

Yes great idea

Check out the duties act vic

TaylorChang wrote:

Thank you for the above,

Just out of my curiosity, currently, I am working in the financial service industry (fund management) and with finance degree. Do you guys think I can get an exemption from doing the certificate or diploma course to get the MFAA or FBAA ?

No. I was in the mortgage broking industry for around 8 years, masters of law, lawyer etc but still have to do a useless cert IV

BFAs are authorised under the family law act. If properly set up they are binding on both parties, but not properly set up would mean they could be set aside. They could also be invalid for a number of reasons. Costs to set up would be around $2000 to $5k

NCCP

Trusts and companies won’t help borrowing capacity unless, perhaps, you have others that can assist with guarantees. And deriving most of your money from PAYE is not really relevant when considering whether to set up a trust/

Foreign income – are you saying you want to make up an income – this would be fraud, offence of obtaining a financial advantage by deception, up to 5 years imprisonment but you would also need to declare any foreign income and pay tax on it.

Buying and trying to sell before settlement is extremely dangerous and you could lose out badly.

Higher rents will help servicing.

I was thinking that if i can demonstrate to the bank that i can mange the cashflow and debt very well. will they think me as a safe person to do business with ? is this the right way of thinking ?
= No, this would not make much difference as you have to fit their policies.

The only way to increase borrowing capacity really is to get more income and/or decrease debt.

But you should consider whether you have really maxed out as each lender has a different policy and works out capacity differently.