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    Do you have a formal investment strategy

    The purchase price would obviously be increased by, say, $20K and then the vendor pays you $20K cash at settlement, so it works out equal. I can't see the difference between this strategy, and simply paying the market price for the property and then borrowing the $20K from the bank. Under...
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    When to get a property revalued?

    Lmi? What would happen if you had a property with, say, 21% equity and a mortgage to the value of 79% of the value. You then had the property valued a year later, its price has dropped and the mortgaged amount is now, say, 85% of the value of the property. Does the lender have any right to...
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    Lease ends in 2 days - Careless PM!

    We've never had an issue with tenants or property managers before...but in the last week two things have cropped up. One has been sorted, but I'm not sure how to handle the other... This is what's happened: 1. There's been a tenant in the property for 4 years. 2. She's been on a 12...
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    First vacating tenant...

    Thanks everyone - I've put a call through to the REA, but still waiting to hear from them. I'll let you know if any complications...
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    First vacating tenant...

    I received a letter for property manager this morning letting me know that a tenant of ours is vacating in 30 days! The lease only expires in December though...so they're breaking the lease. Can somebody let me know what questions I should be asking of the property manager? Particularly...
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    Question - Using Equity

    This is something that has always confused me... If the purpose of taking out the loan is the real test, then shouldn't the interest be deductible if you borrow with the purpose of buying an IP, regardless of whether you later "convert" that IP to a PPOR. The purpose when you took out the...
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    trusts

    A person (or a company) can be a trustee of more than one trust. It's not often done though - generally people want to keep things separate and simple. If you did it, you should ensure that whenever that person or company signs documents or enters transactions, it specifies clearly the capacity...
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    Deduction of Interest on IP when selling

    That's correct - you've already claimed the benefit of those interest payments as deductions. By increasing the cost base, you'd essentially be double-dipping.
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    Borrowings by trust with 3rd party security

    The whole idea isn't primarily to keep assets away from potential creditors - that would hopefully be a useful by product. Here's a summary of the situation I'm thinking of: 1. You own properties in your own name - which are in you own name to take advantage of negative gearing benefits...
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    Borrowings by trust with 3rd party security

    If there's a default on the loan - I wouldn't bother trying to conjure up ways to protect the assets securing it - banks will get there hands on it somehow. But, the asset protection comes into it where the beneficiary has a high risk job and doesn't want assets in their personal name. If...
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    Borrowings by trust with 3rd party security

    Mainly for asset protection purposes - if we followed that suggestion, then the beneficiary would have an asset (being the loan to the trust) which could potentially be called in by creditors.
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    Borrowings by trust with 3rd party security

    Quick question - can a trust borrow money, for instance, to buy shares, with the borrowings secured against property held in the personal name of one of the beneficiaries of the trust?
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    Pepper tree trust strategy .please explain?

    Can't offer anything specific on point, Muffinman - BUT whenever I hear of schemes like this that appear to have no commercial purpose whatsoever and have been concocted by someone to avoid paying tax, I get nervous. I'd pretend you'd never heard of it!
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    Think we've found "The One"...how to set it all up?

    Given it's an investment property, I'd definitely go with an offset account as opposed to a redraw facility because, as Alexlee suggested, it'll be advantageous when/if you ever want to buy a PPOR. One of the key differences, as I understand it, is that with a redraw, when you redraw money...
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    Investing under a trust structure...

    Rollers Something else to think about - there are restrictions on just setting up a trust to receive what is essentially your income from providing contracting services. There is a threshold that you have to overcome before you can effectively alienate your personal services income into a...
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    Trust cloning Q.

    CashflowPlus My understanding is that, IF you can clone a trust in your situation, you can vary the terms of it shortly after the transfer of property is made. Some things to note: 1. The trustee doesn't have to be the same at the time of the transfer. 2. There is no exemption in...
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    My first property purchase......

    Hey! I signed one of those Buyer's Declarations last year too from an agent who subscribes to the Jenman system. One of the important things in the document is that you essentially undertake that the amount you offer is the highest price you are willing to pay for the property - not one...
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    Heard of these guys? Worth a look?

    I've been asked by a mate to come along to a seminar next Monday on "Positive Real Estate" - http://www.positiverealestate.com.au. I'm always very sceptical of these things, but figure it's worth having a look and possibly learning a thing or two. Has anyone dealt with these guys before...
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    Notice to Vacate - Tradesmen

    Hi I've got tenants due to vacate on March 16. They have been given over 2 months notice and sent a notice to vacate via registered mail etc. If they do not vacate their is a VCAT hearing scheduled for the next day. If they don't vacate, i'm pretty sure i don't have the right to kick...
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    "Margin calls" on property

    PT_Bear I haven't got any loan/mortgage documents with me, but I presume this right is built into the contracts? Is that right?
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