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Q: Hi Creative accounts,
I’m looking for a way to reduce my taxable income by $6500 per annum. I currently keep earning to much, and it makes my wife in eligible for family tax benefit B.
I’m on wages and work for a large company that wont let me take a few weeks off without pay.
I Need some creative accounting ideas on how to reduce my income to just squeeze under the 100k threshold. I’m only aware of negativity gearing an investment loan to reduce income.
Any other advice/ideas would be greatly appreciated
A: I am not a financial advisor - but you may be able to pay extra into your super. Check with your accountant.
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Q: Hi
My mum brought a house for around 400k outright but was short 70k so my sister got a loan for the amount and then went onto the house title..we all live together but my sister is now moving out and wants me to take over the loan amd she want to get off the title..
Firstly: what is the cost to just remove her and leave my mum on the title?-is there stamp duty involved?
2nd: if i get on the title what will the costs be?? Will it be calculated only on the 20% my sister put in if i was to do tenant in common or the full market value??..i also work fulltime and have an investment property amd never applied for FHOG and i have a pension card and so does my mother...
Will us both being on a pension card wipe out the stamp duty ?? If i am only being added to the title..
We will have to refinance the 70k borrowed so the loan is in both our names or just mine
A: Hi Amy,
Before doing anything see a broker if you can get a loan on your own for the amount remaining on your sister's loan plus approximate stamp duty costs. You will incur some stamp duty as you are effectively buying your sister out i.e. at 20%. Get a pre-approval home loan in place.
From here : 1. See a conveyancer to find out exactly what the ownership proportion is. 2. A valuation will need to be organised to value the property for stamp duty 4. Draft up a transfer of sale. 5. Take the pre-approval to formal 6. The loan will be transferred into your name and sister will be removed from the title.
Cheers
Peter Pakarinen
Aussie Ramsgate
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Q: We currently owe $682,000 to ANZ and the rate is 4.19%. My income is $130,000 and my wife’s is $95,000. We have 3 kids under 10 but don’t have any other debts. The house would be valued at around $1.3M and we are thinking of refinancing. What’s the best rate could we get?
A: Hi Sam,
As per responses provided you have plenty of income and equity to literally select any lender that you would like. I am feeling that this may be your first time of possibly refinancing away from your current lender. However I would approach ANZ first and see if they will do a better rate. They haven an excellent 2 years fixed at 3.18%. Their will always be a cheaper product on the market. So other than rate you need to be comfortable with the lender and product.
If you would like to discuss your options further always happy to chat.
Cheers
Peter Pakarinen
Aussie Ramsgate
0412 212 152
video
How an Aussie Home Loans Broker can help
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Q: I’m a first home buyer and want to know what deposit I’d need to buy a unit around $900,000 and could I still access the first home buyers grant as it wouldn’t be a brand new unit, Thanks
A: Hi Nathan,
For a 900k purchase there is no stamp or FHO relief. Stamp duty on a 900k purchase NSW is $36,000.
The ideal deposit is 10% plus stamp duty.
Below is an article I wrote a little while ago.
I would always recommend you sit down with a broker such as myself to answer any questions. Our service is always free. From the meeting you will understand your borrowing capacity, funds to complete, process / steps, product, lender and pricing. A broker will also guide you through the whole property buying process.
Article - Ideal Deposit
To purchase property in Australia you will require a deposit or the available equity of another property.
Ideally the bigger the deposit the less you have to borrow which ultimately will reduce your repayments.
Some Terms
LVR - Loan to Value ratio of a property i.e. 810,000 loan / 900,000 property = 90% LVR
LMI - Lender Mortgage Insurance payable to an insurer to protect the lender in the event a lender cannot recover the full cost of a property. Generally payable on loans with less than 20% equity or deposit. LMI is capitalised on the loan and will add to the total LVR.
Stamp Duty - Each state will require you to pay stamp duty on a property. If you are a first home owner you may be exempt or receive a concession.
Deposit Tiers
I have broken the size of your deposit into tiers to assist you with understanding how LMI and Rates are affected. For Residential Owner Occupied it is possible to have 5% deposit + stamp. For an Investment loan at present you will need approximately 12.5% deposit and stamp.
30% + Stamp Duty - No LMI, Best Available Interest Rates
20% + Stamp Duty - No LMI, Good Interest Rates
10% + Stamp duty - LMI Rate Tier 1, Ok / Good interest rates
8% + Stamp duty - LMI Tier 2, Ok / Good interest rates
5% + Stamp duty - LMI Tier 3, Poor interest rates, Not recommend
My tip is if you are trying to find the balance of deposit and property value then a 10% deposit is an ideal target. 8% if you really want to get into a property today. 5% is more of an emergency and need to get a loan as you may forfeit your deposit i.e. soft valuation.
Lenders Deposit Tiers
Some lenders have policy on the minimum deposits size required.
Why having a 10% or bigger deposit is recommended - Soft valuation
A soft valuation occurs when the purchase price is more than the bank values the property.
Original Purchase Price : 900,000
Deposit : 90,000
Loan Required : 810,000
Current LVR 90%
Lender does a valuation and values the property at 870,000
The new LVR is 92%, the client has now been pushed into a higher deposit tier. This means a client will either have to increase their deposit or pay more LMI. If LMI exceeds a lenders policy on minimum deposit required the loan cannot proceed and another lender will need to be found.
Cheers
Peter Pakarinen
Aussie Ramsgate
We service all of Syndey and can come to you.
02 9037 8278
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Q: What happens when one party in a joint home loan dies. Is the estate of the deceased liable or does the loan transfer to the living party.
A: Hi Frank,
Always see a solicitor / lawyer for legal clarification and check with your bank. The loan (some or all) would most likely be required to be refinanced if their is insufficient funds from other proceeds. The advantage of refinancing is the loan can be extended potentially back out to 30 years which may ease servicing. If you do need to refinance see a broker who will provide you with a greater option of lenders that might be better suited.
Cheers
Peter Pakarinen
Aussie Ramsgate
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Q: I have only had my home loan for a couple of months so don’t know much about what happens when interest rates move. My loan is with NAB and I read they are reducing rates by 0.25%, does that mean my repayments will be lower and should I keep making the same repayments I do now?
A: Hi Liz,
Like the other comments repayments are determined by the interest rate unless you have fixed your loan for a period of time. The lender will adjust your repayments accordingly to ensure the loan is paid within your contracted period i.e. 30 years. If you are making extra then you will see these funds in your redraw account.
Example if you make repayments fortnightly it is like a bakers dozen of 13. The extra repayment will be in your redraw. The advantage is you pay of the loan sooner and it helps offset the interest.
Cheers
Peter Pakarinen
Aussie Ramsgate - servicing St George and The Shire.
blog post
Redraw Vs Offset - Do I Need One
By default most home loans come with a redraw facility. Additional payments can be made against the loan which helps to reduce the interest of the loan. A redraw is precisely that any extra paym ...
Peter Pakarinen
5 years ago
blog post
First Home Buyer Are You Lender Ready
The election is over the government has promised a 5% deposit incentive for First Home Owners. So are you Lender Ready?
Don't wait until their policy is announced to see a mortgage broker ...
Peter Pakarinen
5 years ago
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Q: My wife and I are both PAYG employee in the same job for 5 plus years each. Our home loan is with CBA and the rate is 4.39% - loan is $720,000, could we get a better rate and by how much
A: Hi Peter,
As you have probably seen interest rates are now at record lows.
CBA are an excellent lender they have a great product and service.
As per other answers - speak with CBA.
Did you know that generally when you refinance the loan can be increased back out to 30 years. This will also make a significant impact on repayments. Especially if you are in a time in your life where it all helps.
Cheers
Peter
Aussie Ramsgate
0412 212 152
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Q: Hi, my daughter has an Afterpay account and is always coming home with new purchases. Can someone please explain what Afterpay is and what the risks are – should we be concerned?
Thank you
A: Hi Cheryl,
Afterpay is credit just a like a credit card with different conditions. It is a buy now pay later over several fortnightly payments. People like Afterpay because their is no credit application. Like any credit you need to know you can pay the debt off.
From a getting a home loan point off view :- Afterpay debts should be paid off, any outstanding liabilities i.e. repayments no matter how short will reduce the amount you can borrow. Depending on your income this can cause and issue.
Cheers
Peter
Aussie Ramsgate
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Q: CBA and Westpac have announced cuts to their fixed rate home loan options, is know a good time for borrowers to be looking at fixed rates?
A: Really hard question to answer.
However I would recommend you look at long term fixed rates of the lenders and this will give you an idea of where they believe the rates will be.
Similarly the lenders are offering fixed rates lower then then variable offering. This could also be to prevent the refinancing of loans.
Cheers
Peter
Aussie Ramsgate
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Q: Hi, my wife and I are searching for the banks who offer 95% home loan. We are interested in the brand new apartment costing around $660000. We are employed by non-profit Govt organisation and our joint annual income is $147,000 (pre-tax). We have clean credit history (car loan finished, and no existing loan) with two daughters (2y and 8y old). Resident in Kogarah NSW 2217 for 6 years and got our Australian citizenship this year. If we are first time home buyer, what options do we have?
A: Hi Vaibhao,
I am based in Ramsgate / Kogarah - Aussie Ramsgate.
If you would like to sit down and discuss this further you are more than welcome to.
We can navigate all concerns and questions you might have.
At the same time we can also look at your current position and map out a path to get you into your first property.
Cheers
Peter
