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Hi guys,
Could someone please elaborate on the Financing issues. Wouldn’t it just be a regular IP loan?
Also, does anyone know where I can get a full list of the consortium’s that sell NRAS properties. I’ve seen a few from doing Google searches but I want to be sure I am aware of all deals available.
And a tax question; if the main part of the NRAS payment is a Tax Offset, in the case the property is purchased in joint names, would that mean 50% of the offset each?
Cheers
Simon
Simon Plummer | SP
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Thanks 5o1
Simon Plummer | SP
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Not too sure mate. I suppose you could ask a moderator or something.
I wouldn't bother about it…
Simon Plummer | SP
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Not spamming?
ryan mclean wrote:You can use a positive cashflow property finding service like CashflowInvestor.com.au It is getting harder and harder to find positive cashflow properties these days, so to have a team of people working to find them for you is a great idea. I don't like property brokers as usually there is an upfront fee of at least $500 and then you can to pay them about 2% of top of the purchase price, which on a $400,000 property can be like $8,000. The site above isn't a broker, its a subscription finder service. Hope some of you will find it useful.And from someone who on the same day mentioned that they were buying their first property!
ryan mclean wrote:Hey, Me and my wife earn a combined income of $40,000/year. We have set up a trust and a company and are currently in final negotiations of buying our first property.Not a service I would be using in a hurry!
Just jokes McLean…
But in all seriousness there is surprisingly few spammers considering. You would think this would be perfect lurking ground for brokers and agents spruiking their wares.
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Richard,
I have had a read through the infamous "Page 174 of Steves Book 0-130 Properties etc" thread and am still a little confused about the whole thing and would really appreciate your opinion as I need to make a decision about this shortly.
Scenario:
I purchase IP1 in Trust A and personally guarantee the negatively geared loan.
I approach a lender and apply for another loan for IP2 in Trust B.
Question:
Generally speaking, will the lender consider the negatively geared loan I guaranteed from IP1 as a personal liability?
I am going to assume you will say yes to this.
Say I proceed with IP1 in the trust structure and wait for it to become positively geared. I then apply for the loan for IP2. Then, when the lender says "What's this guarantee all about?" I will be able to say "It's positively geared!". Generally speaking, will the lender then consider this in my application or disregard it completely?
Sorry to be so long winded!
Plummer
Simon Plummer | SP
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Hi Richard,
Thanks for your comments.
I attended a market update run by Steve McKnight last week and he discussed (not in much detail) that if you hold property in a Trust with a Corporate Trustee, that some lenders (not all) will not consider any financial commitment you have made with the trust as neither the property or the trust will be in your name. So in your experience is this not the case?
Thanks in advance
Plummer
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Hi All,
I am interested in purchasing my next IP in a discretionary trust so as I do not max out my borrowing capacity when I try and purchase future IP's. My broker advised against it as I will not be able to claim the personal tax benefits of negative gearing. This is not of much concern to me as I am not in a very high tax bracket. Apart from the Land Tax differences, is there any other downfalls of purchasing in this structure as opposed to my personal name that I am missing?
Thanks everyone
Plummer
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It definately makes it a lot easier having a high income. No doubt about it. But I guess you just need to have a positive attitude and persevere with your investing. I net less than $40k/year so obviously the rate I acquire property is going to be much slower than those who earn triple my salary.
Everyone has to start somewhere…
Simon Plummer | SP
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Will do, thanks for your response
Simon Plummer | SP
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Hi Richard,
I have not used a broker at this stage, I have just enquired personally. Would you recommend any Brokers in the Sydney City area?
Ideally I am looking for a 95% LVR Loan where the property can be purchased in a Trust Structure.
Thanks in advance
Plummer
Simon Plummer | SP
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Buy 5x $300,000 units at 80% LVR. Or less at a lower LVR so you can prepare for interest rate rises. Have them sit there for 10 years and BAM! Before you know it your $300,000 has turned into $1,800,000 in equity.
You've come into some cash early in life so if you invest it wisely you won't have to work a day after your 35th birthday.
Simon Plummer | SP
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Read plenty of books that will give you an understanding how investing (be it property or otherwise) works. Then do plenty of research on the net about the type of investment and the goals you want to reach. Then write a plan of what you want to acheive. Then break the plan down to figure out what you need to do on a monthly basis. Then stick to it!
I am by no means an accomplished investor but this is how I have started.
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A little off topic… but in purchasing a block of units held under freehold title, would you encounter any problems with attaining future finance considering there will be a bunch of separate tenancy agreements? Or are lenders generally cool with that?
Simon Plummer | SP
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I do not know exactly what I'm doing, but have a general idea as I have read a few books surrounding the topic. It may be best for me to get some advice. Can anyone recommend anyone around Sydney city?
Thanks for your help guys
Simon Plummer | SP
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Excellent
And in setting up a simple trust structure would it be best to use something along the lines of cleardocs.com or actually go to a trust accountant?
Simon Plummer | SP
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Terryw wrote:No, you cannot transfer without stamp duty and CGT would be pyable if the place was a rental property. Also the lender would require you to discharge the loan and reapply for the new loan as the ownership would be changing.Why not keep it as is and claim the main residence CGT exemption. Get future ones in the trust.
Yeah that's what I guess I will have to do. In attaining finance for properties purchased in trusts, are lender's rules similar to if you were purchasing in your name? Like would they still offer the same LVR and have the same borrowing power rules?
Simon Plummer | SP
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Hi All,
Amateur question…
My PPoR is in my and my girldfriends name. I am looking to start a property trust as I plan to purchase some investment properties. As my plan is to rent this one out, is it possible to transfer the property and mortgage into the trust without incurring the cost of CGT and stamp duty? Also, would my lender mind me doing this if I continue to personally guarantee the loan?
Thanks in Advance
Simon Plummer | SP
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