Love your work sprunk – that's what negotiating is all about, and you get better at it very quickly. You will get different reactions from different agents and start to get a feel for what price they think the property will go for. I also totally agree with DW and GOM – let them stew over it for a while! The worst that can happen is that they sell…[Read more]

Figures look correct – Again, just remember to take this $22k out as a seperate loan so that claiming the deductible interest will be much simpler at tax time!

I'm still contemplating getting a tax ruling on that one Terry. I ran some numbers and it is a very powerful strategy as you pointed out in a previous post.Have you ever seen someone called up on Part VIA or similar breach of the Taxation Act for it? Thanks

*smirk* Nice one Terry.

Hi Emerald mum, The only way that you can increase the deductible portion of the loan is if it is used for something that adds capital value to the property. As your friend suggested, renovation is a good example of this. eg: Your current loan is $100,000 and you complete $20,000 of renovation – The new loan is $120,000 and this will be fully…[Read more]

I think I just worked it out. 30c tax is on the ENTIRE profit, whereas individual tax rates are on a sliding scale. Is this how you derived the $120k?

Thanks for the response Terry.I thought next year's tax rates resulted in taxable income over $80k paying 38c in each $1 – Am I missing something here with the $120k you mention?

The S/P covers off on any other personal guarantees, but not any other directorships. I suppose the only time this would be an issue is if you had funded through a company and not given a director's guarantee. Uncommon, but not unheard of. S/P for reference -…[Read more]

I agree Richard. And in respect to finding a "lender" who doesn't ask those questions, you probably couldn't. If you looked for specific individuals within those organisations who don't ask the right questions – they are everywhere!In terms of standard application forms, I don't think ours have it written…? Most probably do though. And once…[Read more]

Sorry to hijack your thread kashe, but this question may also help you with yours. Terry – When you distribute from the trust to the company, the company pays only 30% tax rate, so this is great for people above 30 cents in the dollar marginal tax rate. The question is…. then what? How can an individual distribute those funds for their own use…[Read more]

Richard, Just clarifying regarding the up front valuation ordering. If the deal goes ahead, then the client pays for the valuation right? And if it doesn't then the broker pays for it? I think Homeside do that now too

fredo, Some investors will borrow under different companies and specify different directorships with different banks. If the bank asks you what companies you are associated with and all the loans you guarantee, then you have to advise them. In some cases though, the bank will never ask, and therefore occasionally people get away with perhaps more…[Read more]

Nice brief explanation Terry – I'm saving this link for when the question comes up again.

No problems sprunk – Make sure you post back to let us know how it goes!Good Luck!

Adam, Have PM'd you. Let me know if you didnt get my details.

Definitely fair – In the same circumstance I would offer around $250k and see what sort of response you get. Then go to $255k, and ultimately up to $260k if you have to. And if it goes above your budget, let it go! There will always be another opportunity around the corner,and it gives you more time to save money.

Hi Michelle, With the place in Cowra, did you get $170 p.w week rental BEFORE or AFTER renovation?

Hi Natasha, It seems you already have the answer, but just confirming that NAB will not lend under a SMSF for construction either.

Hi CJ, If you plan to buy another PPOR and turn the existing PPOR into an IP then I would stop making payments to it immediately. Your best option is to make the Perth property loan interest only and make all your repayments into an offset accounts against that loan. This has three advantages: – You are still saving interest on the PPOR until you…[Read more]

was only kidding about the stalkers comment dwolfe… all good