Monster's Mum
13-10-2007, 13:05
Hi Andie Pandie,
I'm not sure if you can answer this question but thought I would give it a shot anyway.
To cut a long story short, our current home has only my name on the title. We plan on purchasing a new home and using the current home as an investment but for taxation purposes it is better for the title to be in my husbands name (aparently you can transfer title to a loved one without incurring stamp duty) but how does this affect the existing loans ie do they need be refinanced or is this just administration thing and the loan (in both names) will carry on as normal. Do you know what I mean?
When I spoke with the bank they're like yeah yeah, no problem just to change title over (very vague and brushed my question aside) but when I spoke with the accountant he said that the loan would have to be refinanced. We aren't able to meet with the accountant for another month so won't get clarification from him until then and I'm impatient for the answer now!
Also in a previous thread about investment loans you mentioned that you are unable to change the purpose of the loan ie owner occupied to investment. Our idea and from what I can gather from the accountant the idea would be to have the investment loan the larger one and the new property (our residental home) with the smaller loan. I'm guessing he means to borrow more on the exisiting loan (up to 80% so as not to incur mortage insurance) and use this cash to purchase the next house - applying for another loan to make up the difference? Does this make sense? I'm just confused as I have the impression from accountant the "bigger" loan is possible on the existing house which will become the investment property but in your previous post and in discussions with the bank it doesn't seem possible and it's all doing my head in and I can't sleep at night!
We have finance approved for the new home and the house we are interested in is up for auction next weekend. If we are successful then I am just anxious that we are setting up the loans wrong (ie that they won't be benefitial tax wise). After paying the deposit (and as long as settlement is long ie 60, 90 or 120 days) how long do I have before I go to the bank to finalise the loan ie will I have time to go to the accountant (1month away) to discuss and approach the bank to set up the loans which will be benefitial to us for taxation purposes? And yes I know I should have seen the accounant earlier but well I can't change that now! (Plus the bank has just been so blaze (sp?) about things that I guess I haven't been asking the right questions until now).
Have I made any sense and please tell me to stop being a stress head and be better organised if you feel this is necessary!! :D
Oh and this post is soooo much longer than originally intended so I apologise for that too! :o
Any clarification, suggestions would be greatly appreciated.
I'm not sure if you can answer this question but thought I would give it a shot anyway.
To cut a long story short, our current home has only my name on the title. We plan on purchasing a new home and using the current home as an investment but for taxation purposes it is better for the title to be in my husbands name (aparently you can transfer title to a loved one without incurring stamp duty) but how does this affect the existing loans ie do they need be refinanced or is this just administration thing and the loan (in both names) will carry on as normal. Do you know what I mean?
When I spoke with the bank they're like yeah yeah, no problem just to change title over (very vague and brushed my question aside) but when I spoke with the accountant he said that the loan would have to be refinanced. We aren't able to meet with the accountant for another month so won't get clarification from him until then and I'm impatient for the answer now!
Also in a previous thread about investment loans you mentioned that you are unable to change the purpose of the loan ie owner occupied to investment. Our idea and from what I can gather from the accountant the idea would be to have the investment loan the larger one and the new property (our residental home) with the smaller loan. I'm guessing he means to borrow more on the exisiting loan (up to 80% so as not to incur mortage insurance) and use this cash to purchase the next house - applying for another loan to make up the difference? Does this make sense? I'm just confused as I have the impression from accountant the "bigger" loan is possible on the existing house which will become the investment property but in your previous post and in discussions with the bank it doesn't seem possible and it's all doing my head in and I can't sleep at night!
We have finance approved for the new home and the house we are interested in is up for auction next weekend. If we are successful then I am just anxious that we are setting up the loans wrong (ie that they won't be benefitial tax wise). After paying the deposit (and as long as settlement is long ie 60, 90 or 120 days) how long do I have before I go to the bank to finalise the loan ie will I have time to go to the accountant (1month away) to discuss and approach the bank to set up the loans which will be benefitial to us for taxation purposes? And yes I know I should have seen the accounant earlier but well I can't change that now! (Plus the bank has just been so blaze (sp?) about things that I guess I haven't been asking the right questions until now).
Have I made any sense and please tell me to stop being a stress head and be better organised if you feel this is necessary!! :D
Oh and this post is soooo much longer than originally intended so I apologise for that too! :o
Any clarification, suggestions would be greatly appreciated.