[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 12, 2003 - 2:24 pm

Bill

You name the odds i will accept them.

Cheers Richard
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November 12, 2003 - 2:11 pm

No land tax payable on a PPOR in Qld.

Another good reason to move to the Sunshine Coast.

Cheers Richard
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November 12, 2003 - 1:53 pm

Rodster

Whilst we are Qld based we normally charge $300 for the initial consultation which can be by phone, email and then $220 / hour.

Feel free to email me and i will direct your enquiry onto Steve who looks after all Trust enquiries.

Cheers Richard
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November 12, 2003 - 1:46 pm

Bill

You wanna have a side wager that we don’t get 50 basis points increase on the 3rd December.

Also you guys never heard of fixed rates of interest. Why not take out a LOC upto 80% of the current valuation on a fixed rate basis.

Cheers Richard
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November 12, 2003 - 1:36 pm

Jason

I think after reading your post several times i now understand it.

Firstly may i ask where you would obtain 8.35% return on a short term fixed rate. I assume that you are referring to first mortgage lending or similar investment that carries with it an element of risk.

Lets assume that you can get around this.

You may then fall foul of the ATO’s “purpose test” by using redraw and maybe better to establish a separate line of credit to access your available funds.

After doing this you are right you will be required to pay tax on the profit. Using your example your tax would be payable on the additional $185 of income and would vary depending on your marginal tax bracket.

All in all with possible set up costs i think you would ask yourself the question would you bother for a net amount of around $100.

Cheers Richard
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November 12, 2003 - 7:44 am

Kay

Not sure where you are getting your finance ideas from.

2 major lenders offer 100% loans at only a slightly loaded interest rate.

Several other majors lenders will offer 90% of the purchase price where the deposit can be raised by gift / borrowing or any other method as long as declared.

2 immediately spring to mind that will offer 95% loans without the need for a savings history as long as you qualify for the FHOG.

Mortgage Insurance is payable normally over 80% of the valuation / purchase price and in most cases can be added to the loan.

Cheers Richard
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November 12, 2003 - 5:16 am

David

The normal set up is exactly as you have suggested.

Use a line of credit secured against your own property and then obtain funding on each security to a level of 80% of the purchase price / valuation.

Depending on property valuation and the price of those properties you purchase you maybe limited to the numbers you can do.

We have to date completed 126 and hate to tell you its about putting in hard earned cash and other security when the line of credit on your house is used up.

Cheers Richard
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November 12, 2003 - 4:58 am

To correct Chris you need to actually hold the asset for 1 year and 1 day to benefit from the halving in CGT rate.

Have had many clients who have come a cropper thinking it was 1 year.

Cheers Richard
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November 7, 2003 - 2:15 am

forextrader

With a UK background and still many properties in the SE would like to be of assistance.

We have wrapped over 126 proeprties ourselves and would love to assist some fellow Poms if they are looking at purchasing in Qld.

Feel free to checkout our website.

Cheers Richard
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November 7, 2003 - 1:47 am

Weniksa

As the other posts have mentioned it all depends on what your own personal goals are.

We have wrapped 126 properties with the majority in regional queensland where upto now there has been little or no capital growth.

We didnt want our wrappees to refinance and are now enjoying the very positive cash flow each month.

If you are looking at making a capital gain combined with cash flow then why not consider purchasing a regional located property and then wrap in say 6 / 12 months time.

Cheers Richard
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November 7, 2003 - 1:43 am

Murmur

Why not try St George Bank or Pepper Home Loans both who offer 100% lend.

Cheers Richard
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November 5, 2003 - 6:26 am

Wealth

Perhaps, it could be that your accountant doesn’t receive anything out of you investing in property.

Another thought is to buy in town (even Inter State) whereby the rent will be nearer the repayments. If you chose a good property manager then the property could be anywhere.

Remember it is an investment you don’t want to drive past it each day!

Cheers Richard
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October 31, 2003 - 4:36 am

First Timer

I think the figure Leigh may have given as the cost of setting up a Trust may have been a little high.

You are looking at around $450 for the setup costs for a Trust however maybe another $1000 if you are going to use a Company vehicle as the Trustee.

Feel free to email if you want any other quesions answered.

Cheers Richard
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October 31, 2003 - 4:21 am

Kay

Feel free to email us.

Cheers Richard
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October 31, 2003 - 4:09 am

To all of you to whom we have offered our services to in Rocky what have we been telling you for the last 6 months.

Cheers Richard
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October 23, 2003 - 10:29 pm

Stu

Just wanted to say what a good job i think you did on your API article. Only just read it but fully agree with your comments.

Having 126 wraps under our belt we admit we have run out of deposits and now need to wait for the $7K FHOG to arrive each month to increase out portfolio.

Don’t think the gurus mentioned that.

Cheers Richard
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October 23, 2003 - 10:16 pm

Hi Jackie

Sure Steve won’t mind me answering a question addressed to him from my personal experience.

We have to date completed 126 wraps and have them all arranged on a stand alone basis with 3 seperate Banks.

By avoiding xcollaralising them firstly you are not breaching the Property Act (only applicable if you are reselling them under an Installment Contract) and secondly if your wrappee decides to refinance or sell then it is easier for you to administer.

I guess if you have several -geared properties then you could consider utilising the equity in one property and offering that equity to your financier to purchase other -geared properties. It’s a personal opinion.

You can always arrange to have a property released subject to valuation if you decide to wrap it or sell it later down the track.

Cheers Richard
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October 23, 2003 - 9:52 pm

Uncle

Don’t get me wrong not everyone who wants to borrow money for a home can do so but the number of non conforming lenders is considerably more than there is in Oz.

Due to the overall number of lenders competition is stronger and the rates charged above base rate are generally lower. Also the personal loan market is considerably bigger so a lot cocktailing takes place whereby a client may take out a personal loan and use this as deposit for his home loan.

Vendor finance does exist but not in the same format as over here.

Happy travelling and go the Welsh in the RWC.

Cheers Richard
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October 23, 2003 - 8:14 am

Cheryl

Don’t let the comments abount 65% being the maximum loan you can obtain in rural locations deter you from investing in regional australia.

Whilst, I agree that might be the lending criteria
of a few lenders in the whole depending on the land size most will go upto 80% and often higher.

Just feel free to bounce your ideas off one of myself or one of the other Mortgage Brokers on the site.

Cheers Richard
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October 23, 2003 - 5:34 am

Brent

Trading shares would be acceptable if you can prove what your original objectives where in your initial investment strategy.

Derivatives would be a different matter unless you are licensed and could convince the ATO (if required).

We had our Super Fund audited less than 6 months and trade both shares and derivatives but as a licensed dealer in securities were able to convince the auditors that the level of risk was acceptable.

A Super Fund is however not able to be seen as carrying on a business.

Cheers Richard
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There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender