Hi!
I've been viewing the forums for quite some time as a guest, but finally decided to create an account!
So here's my position -
I'm 23 yo working as a commercial lawyer in Brisbane with a decent salary. I own an IP (apartment) 50:50 with a relative (acquired June 08, debt 375k, value based on listings 450-475k - slightly positively geared due to it being in short-term corporate letting pool).
I would like to take full ownership of this property, and my brother agrees to this occurring. Is it best to have him gift me the property and for me to take out a new loan for the current debt + half the increase in value? Is that a fair way to do the calculation? or should I buy his share, which would attract an investment rate of stamp duty? Is there a better way?
I have also placed a deposit on an off-the-plan apartment due to be completed late-2011. That deposit is 55k (funded completely through a personal loan (the banks didn't really know/care what I was doing with the money). I've done my budgets and I can and will pay off this loan by September 2011 - albeit not a smart option, I took this path because I got a great deal and had limited cash reserves, plus it was compulsory saving to a worthwhile goal and I figure I can deduct the interest payments (although I will have to talk to a good accountant/financial adviser re this and my situation generally, any recommendations in the Brisbane area? Please pm me or post here if you like).
Worst case scenario, I will sell this property pre-settlement and cop the double stamp duty...reliable estimates plus current pre-sales on a nearby similar development have the apartment already valued at 100k more then I paid for it - it helps that i bargained hard originally. Although, I'm hoping for the preferred scenario where I settle on this 2nd IP - I intend to put both mortgages with the one bank, x-collaterising if need be, in order to negotiate a substantial discount and accelerate towards a 3rd IP, I'd say I'm in a pretty good bargaining position.
My only other debt is a car loan for which I owe 11k - although this will be paid off by mid-year, I'm getting rid of it first as its not tax deductible - Since reading the forums i've realised it was a really dumb mistake buying a new car, but here's to hoping it'll last me 10+ years.
I am serious about getting involved in IP and building my portfolio - I have started assisting with selling off-the-plan IPs around my full-time work, thus building knowledge and contacts. The income I get from this isn't needed to meet my above goals, but it will certainly assist to speed it up!
I would very much appreciate feedback on my approach to date and what I should do going forward - again, happy to take recommendations for a good financial adviser / accountant who can help me long-term (I also want to set up my own SMSF in the next few years) I'm just worried that I'll pick one ad hoc and be wasting money...
I've been viewing the forums for quite some time as a guest, but finally decided to create an account!
So here's my position -
I'm 23 yo working as a commercial lawyer in Brisbane with a decent salary. I own an IP (apartment) 50:50 with a relative (acquired June 08, debt 375k, value based on listings 450-475k - slightly positively geared due to it being in short-term corporate letting pool).
I would like to take full ownership of this property, and my brother agrees to this occurring. Is it best to have him gift me the property and for me to take out a new loan for the current debt + half the increase in value? Is that a fair way to do the calculation? or should I buy his share, which would attract an investment rate of stamp duty? Is there a better way?
Note: Whichever option I take, I will probably do it at the same time as I settle on my 2nd IP in late-2011 as then I won't be liable for any LMI. Ultimately the purpose of acquiring the full property is so the banks don't treat the whole debt as mine while only accounting for 40% of the income!
I have also placed a deposit on an off-the-plan apartment due to be completed late-2011. That deposit is 55k (funded completely through a personal loan (the banks didn't really know/care what I was doing with the money). I've done my budgets and I can and will pay off this loan by September 2011 - albeit not a smart option, I took this path because I got a great deal and had limited cash reserves, plus it was compulsory saving to a worthwhile goal and I figure I can deduct the interest payments (although I will have to talk to a good accountant/financial adviser re this and my situation generally, any recommendations in the Brisbane area? Please pm me or post here if you like).
Worst case scenario, I will sell this property pre-settlement and cop the double stamp duty...reliable estimates plus current pre-sales on a nearby similar development have the apartment already valued at 100k more then I paid for it - it helps that i bargained hard originally. Although, I'm hoping for the preferred scenario where I settle on this 2nd IP - I intend to put both mortgages with the one bank, x-collaterising if need be, in order to negotiate a substantial discount and accelerate towards a 3rd IP, I'd say I'm in a pretty good bargaining position.
My only other debt is a car loan for which I owe 11k - although this will be paid off by mid-year, I'm getting rid of it first as its not tax deductible - Since reading the forums i've realised it was a really dumb mistake buying a new car, but here's to hoping it'll last me 10+ years.
I am serious about getting involved in IP and building my portfolio - I have started assisting with selling off-the-plan IPs around my full-time work, thus building knowledge and contacts. The income I get from this isn't needed to meet my above goals, but it will certainly assist to speed it up!
I would very much appreciate feedback on my approach to date and what I should do going forward - again, happy to take recommendations for a good financial adviser / accountant who can help me long-term (I also want to set up my own SMSF in the next few years) I'm just worried that I'll pick one ad hoc and be wasting money...
Last edited: