The plan would be that the SMSF simply contributes cash to the deal (through buying units in the unit trust). We would personally borrow from the banks in our…[Read more]

On the positive it means there will be less competition for good sites. I think a lot of the developers are in trouble as the banks have changed their appetite for risk. Having a business plan which assumes you…[Read more]

How do you see he mitigates the risk? I assume you mean the risk is reduced for himself as the developer?

Greg

I think my initial post was not very clear. The SMSF will not be buying the property so your point 4 (the second one) should not be applicable.

To clarify – the plan is that the SMSF invests money into a property development that we purchase in a different strucure.

I think the issue is more your…[Read more]

Greg

However, the current goal is to figure out how we can do it considering we are all family members. I assume that adds a level of complexity under the 'related parties' type rules. Can you point me in the direction of any…[Read more]

I am concerned about getting this correct – so if you can suggest any names of people who specialise in structuring investments to be…[Read more]

I agree totally it is a false economy.. You have to think about why the government (Tax Office) allowed normal employees to claim vehicles as tax deductions back in 1996 (I think)..

It has boosted the GDP (making people spend more) and boosted the car industry.. Plus people feel richer..

As I…[Read more]

Since the top marginal tax rate back then was $50,000 it made a lot of sense.. But now the top tax rate kicks in at $150,000 and has been reduced to 45%.. You have to do your numbers and even with after tax contributions for FBT it may be marginal if…[Read more]

Can someone give me an indication of the interest rates I could expect on both a No Doc with a 70% LVR and also one at 80% LVR..

Prefer to stay away from Lo Doc because of the need to state income..

Greg

No matter what price range you are in the fundamentals are similar. Bottom line is you have to purchase the porperty at a good price in the first place. Personally I would consider wrapping below $200k to be a cheap house – especially these days.

Greg

I would wrap a commercial property to you (if I had one!) provided my position was secure. You would need to provide me with sufficent deposit and possibly (depends on circumstances) a personal guarantee or caveat over something else of value (possibly your family home – depends on existing LVR/equity).

Provided my position was…[Read more]

CGT is based on the contract date – NOT the settlement date. So if I know that my income is going to be high this year and lower next year, then if I can choose I would prefer to pay CGT next year.

Often used in commercial and by developers…[Read more]

Despite most peoples belief ‘Title’ and ‘legal ownership’ are not strictly the same thing. When the contracts are signed and accepted you have a interest in the property, as an owner, even though you have not paid yet.

So you can’t sign the contract then run off and set…[Read more]

Thanks for the replies. A question on LVRs..

When you mention 80%.. Is that based on the completed market value of the house and the land or is it based on the actual construction costs of the house plus the land value.

They have borrowed from Westapc to buy the land, but may need to go elsewhere if it will be difficult to owner build.…[Read more]

It has been brought to my attention that it might have been a good idea to let people know where and when this event is being held… Sorry about that! [confused2]

Anyway I still have a couple of tickets left, so if you are interested or know anyone else who might be the get in touch with me by email or PM.

Date…[Read more]

You might get hit up for double stamp duty depending on which state you are in.

Greg

I think the lucky people in NSW get to pay SD within 30 days of signing the contract regardless of when they get the property.

Alternativley you could explore the use of an…[Read more]

You could be liable for CGT, stamp duty and GST when you sell depending on how you go about structuring things and the state you’re…[Read more]

It is difficult for ordinary taxpayers to claim deductions for education expenses, unless they are…[Read more]

Highly regarded:
http://www.gatherumgoss.com/

Cheers,
Greg

Imagine this: You are involved in a motor vehicle collison and another party ‘alleges’ injury and sues you. It is found that the tyres on your car are unroadworthy.

In this case your insurance company will run a mile and tell you that you’re on your own. In this case it doesn’t…[Read more]

Others might disagree…

Cheers,
Greg

I wouldn’t expect a mechanic to charge me relative to the value of the car I drive…

Imagine if solicitors conveyancing was a percentage of the contract price! And, why not the removalists and carpet cleaners..

My point is most people and businesses work for…[Read more]

As Richard pointed out you need to be aware of the Managed Investments Act (either to abide by it or avoid being subject to it). Obviously this is just a start and more legislation applies.

On another note if you buy with multiple investors via a unit trust or otherwise you should consider your asset protection strategy.

What would…[Read more]

In Victoria that is exactly what it says in the Instruments Act. But there was reently a case that went through the courts where they ruled otherwise. After negotiations an agreement was reached and the details jotted down on a bit of paper. Then the seller (If I remember corectly) decided to back out as they realised they could get…[Read more]

http://businessnetwork.smh.com.au/articles/2005/04/22/2089.html

A similar question was aked a while back and, as I recall, people in the finance industy suggested paying back the debt at the minimum amount per week – not as a lump sum. They said paying it back as a lump sum would not necesssarily help you get approval for a loan. (Try doing a search for it).

You can still get a copy of your credit…[Read more]

If the SMSF is buying units in a trust which owns a house, which is rented by your parents then I think you are skating on some mighty thin…[Read more]

So basically they are just taking you details and placing the order on your behalf. So like you said this requires very little training…[Read more]

Also I remember a Residex report on Cairns units about 4 months ago and it was less than glowing. If I remember correctly they predicted the CG for Cairns units to be aound 0% for the next 5yrs.

Maybe they aren’t…[Read more]

Sounds like you intend to skate on some mighty thin ice!

You need to consider the “Sole purpose” tests for SMSFunds. To sumarise this means that the investment must be soley for the purpose of providing for your retirement. If you or a related party/entity also benefits from the investment you have failed the sole purpose test.

An…[Read more]

It is very common for shareholders (and directors) of the trustee comapny…[Read more]

Also, I agree with Terry these departments might have internal policy – it will always be written down and just because they do not publicly announce it does not mean they will not send you a copy if you ask nicely.

For example the Vic FHOG application includes a list…[Read more]

Or if you want to waste time try having a look around on the part of their web site that relates to the FHOG…

Cheers,
Greg

I might leave the good old tax act for another night. Thanks for the link though…

It seems that a lot of people incorrectly treat the terms ‘discretionary trust’ and ‘family trust’ as being interchangable. I had this problem when talking to my (previous) accountant. He kept dropping the term ‘family trust’ when I was talking about…[Read more]

Now these agencies will commonly take a few weeks to process things but most of the delay often…[Read more]

I am not sure I would agree that Ed Burton charges a lot for his trusts. You could probably buy one from ebay for $39, but would you?

My point is that quality is far more important than price. You might think you are saving a hundred dollars by going to your local suburban accountant (who does not specialise) – but when you find…[Read more]

losses incurred by property owned by the trust could not be offset against our personal income but can be offset against any future income made by the trust
Yes, but there are issues with trust losses. To carry forward trust losses the trust has to make a family trust election, which has certain…[Read more]

I have to agree with Foundation that there has been many more forces at work than the infinetly measurable population flows which so many research firms earn big money by producing.

The items in my…[Read more]

Ring up a few PM in your town and tell them you are thinking of moving out there soon due work oppurtunities and tell you need a 4 bedroom house with garage etc (Whatever your house has) and then ask them what they think that you will have to pay in rent for a house like that…

Do the same thing for all the agents and you should have a…[Read more]

A builder had two display homes that he had built and was now selling. The headline on the deal was the builder wanted to lease them back for 3 years and pay a whopping $30,000 pa rent. This area averages more like $12,000pa.

Sounds good until you looked at the…[Read more]

Tony Cordato is a lawyer in Sydney who understands lease options and wraps. I got this number out of the white pages so it should do the trick…(02) 9290 2773

Cheers,
Greg

Tony Cordato is a lawyer in Sydney who understands lease options and wraps and I am guessing it would be worth your time talking to him about assiging contracts also – I got this number out of the white pages so it should do the trick…(02) 9290 2773

Cheers,
Greg

Yeah I forgot I had that name tag on until I arrived home! I thought it was a great night – got some valuable information and had a good chat too. Would have liked to have caught up.

I think Lewis does a great job. I have dealt with other solicitors and he is head and shoulders above the rest, in regards, to knowledge, attitude, and…[Read more]