Though Doesnt the bank normally want to know where the money/deposit was from?

If the loan is from the vendor and IS repayable is that OK, ie. the valuation shouldnt be adjusted down?

I suppose the bank will also want to factor in repayments on this portion in the buyers serviceability would…[Read more]

So assuming trust splitting not used how much stamp duty would we be up for?
Is it based on end valuation of units – but we each own 50% share originally so is stamp duty 50%???

Thanks
Grant

Over 20,000 have been fined for overstating there incomes in Low Doc Loans check the ATO website for more.
http://www.ato.gov.au/corporate/content.asp?doc=/content/mr2004042.htm
http://www.ato.gov.au/corporate/content.asp?doc=/content/76377.htm

I checked the websites Josh and I cant find any…[Read more]

So if your projected income is some capital gain from selling a house the profit might be 100k. But the after tax profit after 50% CG dscnt and all other deductions might be 30k? Or less if a trust involoved.
So on your tax return its 30k.
So is your Lodoc income 100k or 30k???

Thanks
GRAnt

Im often looking for equity partners to, so Im curious what do you look for in a deal before u would put your money in? And what security would you require over your money? Are u just looking for a %return (paid monthly/yearly) or would you only go in if you were a partner on the title of the property being purchased.

Thanks
Grant

Do u have a link to that ATO article? I had a search but the only thing I can find is people being fined for understating thier income in thier tax return or not even submitting thier tax return.
But im not talking about that, rather what can be included in Lodoc income. Especially profit from selling a property.

Thanks
Grant

Grant

Im also in WA and after speaking with OSR they confirm that if properties held in different trusts then land tax is treated separate for each trusts. ie not combined saving lots of land tax.
Are all your properties held in one trust? If so why? Is there any disadvantage Im not seeing in having multiple trusts?

Thanks
Grant

How exactly is it a great deal?
By the end of the 5th year, you’ll be paying (on their $400k example) an extra $500 per month extra as compared to fixing the entire $400k at 6.99% (which is easily doable NOW). Add 30 years of repayments, and that figure comes to almost an additional $170,000 in interest payments,…[Read more]

Carrington is interesting, unfortunately they require 2 yr ABN which I havent quite reached yet.

But has anyone seen this at
http://www.investorsdirect.com.au/newsletters/072006/story1.htm

2. How can you keep borrowing money without an income?

There are mortgage products that will allow investors to borrow 80% of the…[Read more]

Sounds like a great deal to me, id like to sign for 3 or 4, pity they didnt leave any clues on how to apply?? Or the requirements…
Anybody know?
I would attend a seminar but…[Read more]

Dont worry my wifes got list of jobs to keep me busy for a decade or so…

I sort of thought carrying forward losses might justify it so I’ll keep claiming. But at the moment I only have a discretionary trust.
Given my plans would u think it worthwhile setting up a HDT??
Could I use a HDT now but have it work like a ‘normal’ trust,…[Read more]

There would be no fixed contracts involved, just qoutes from contractors. Would that be OK to substantiate costs?
If it was 65% of end value would there be MI involved?
Considerint the low LVR would full financials be required (ie. full income / assets etc…)
Would it be postcode sensitive?

Thanks
Grant

“When determining the deductibility of interest, the key determinant is the use the funds are put to.
If you borrow funds, and park them in an interest bearing savings account from where you immediately purchase an income producing asset, then deductibility will be…[Read more]

What if I borrowed the deposit of my friend, placed it in a savings account then paid it to the settlement agent.
When I pay them back can I just draw down money into a savings account, then transfer it to the friends account.
Have I lost the link, or is that what I need the loan agreement for?
The loan is for like 1 week so I’m not to…[Read more]

OK, what if the savings account is an offset account?
So that when the expense is paid from that account the interest bill that month will increase?

What LVR was the Westpac lodoc loan?
Did you have to put down a ABN number?

Thanks
Grant

I would strongly recommend using a deposit bond rather than cash.
I used one through deposit access recently.
http://www.depositaccess.com.au
donnie@depositaccess.com.au (donnie was helpful)
Its worth shopping around as they charge different fees and have different requirements. Some said I wouldnt qualify while others said I would! They do…[Read more]

Isnt the rams pro-pack a Lodoc not a Nodoc?

Thanks
Grant

first you get a end value of the project in your case 580k then you take 66.79% which is norm not 69% of the 580k which is 387,380.00 thats is the complete lend you have out of this 5% contingency cost 19.37k the lender hold this and interest 27.12k = 340.89k

So are you saying the lender lends 340.9k.…[Read more]

Thanks
Grant

I dont wish to shift the loan, I just want to shift my PPOR to another lender (debt free) and I was wondering do I need some papers or something from the bank releasing it before I can do this.

Thanks
Grant

I would be interested to know if its ANZ policy or just something…[Read more]

Thanks for your comments / input.
My accountant has said that any lender that requires gaurantees from trust beneficiaries is wrong as legally no benficiary can be held liable for the trust debt.
However it seems out of policy some lenders do and some lenders don’t.
The wise old TerryW (broker) has told me to avoid problems it may be best…[Read more]

The beneficiaries are unaware they are beneficiaries as they have recieved no income (yet).
The tax issue is quite simple – they pay tax out of the money they recieve at whatever there tax rate is.

Cheers
Grant

Thanks
Grant

What does ‘A & L 2.5 times loan amount’ mean?
Do they do this loan for residential construction?

Thanks
Grant