Archives for March 2011

If you are an Australian citizen or permanent resident contracting in the and seeking home loan finance for an Australian purchase, MAP can assist. Contractors in the UK may be working via their limited company and even making use of offshore structures to minimise tax payable in the uk. These sorts of structures are not common in Australia as the operation of the PSI rules essentially makes these structures no more tax effective than just sole contracting in ones own name. As they are not common in Australia many lenders will not lend based on this income unless 2 years overseas financials and tax returns can be provided. If you are using one of these tax effective structures then your taxable income will not reflect your true income and most banks will not lend to you. There is 2-3 lenders however that will see through this structure and essentially follow the money. Providing they can see your employer paying your… Read More

 What is a favourable purchase? As ones parents or grandparents get closer to retirement, they may wish to sell their property to either downsize or move into an aged care facility/retirement living. Many children do not like the idea of mum and dad selling the family home so will look at purchasing the property to keep it in the family. In this case sometimes the parents will agree to sell for under market value to assist their kids financially and also with the view to keeping the home in the family. When a property is sold for under market value to a family member, this is called a favourable purchase. Essentially what is happening is the parents are gifting equity to the child. For example, if the purchase price was $400,000 and the valuation was $500,000, the parents are basically gifting the kids $100,000 in equity.   Can you get a home loan for a favourable purchase? Absolutely, although different… Read More