rc388 wrote:
Hi after reading Steves book on trusts I generally understand the usefulness behind asset protection however am I also missing something? The loan on which the asset is typically paid for is secured by the bank so they have legal right to sell etc if repayments are not made; most land lords take out rental insurance in the event a…[Read more]

Very true!

SHould I sell all my shares in a few weeks??

It would be taxable income and yo would lose the main residence CGT exemption.

Tresbeaus wrote:
I have a question regarding the use of structures to own property.I have been reading so many differing opinions its doing my head in. If you use a Trust structure to own property,do you lose the benefit of being able to claim costs of holding the property ie interest on loan,depreciation,maintenance and so on against your…[Read more]

Consider forming a SMSF with another family member?

Qlds007 wrote:
For what ?

Cheers

Yours in Finance

Administering debt agreements!

What is a debt agreement administrator?

Sounds like your broker has given you what you asked for. It is not wrong, but could have been set up more effectively I think. However, if this property were never to be rented out it won't matter too much. You are only disadvantages in the relatively short time before you move in, and even then probably not much.

But, if there is a slight…[Read more]

Just keep reading, with a critical eye, and you will learn.

jate wrote:
Thanks Terryw and PLC. You guys are always so quick and on the ball on these forums.
Glad that you can provide such helpful hints and advice for us all.

All these new accounts I've suddenly acquired from my mortgage broker after refinancing/restructuring was really confusing me.
Very different to the simple days I used to have…[Read more]

ClintBlakemore wrote:
well i can redraw the money back as i have been to do up the house… i know i stuffed up after i saw my accountant.
the 100k loan is based on my current loan i have at the moment plus what i can add to the loan towards another house
My girlfriend is heavily considering going in with the other property that we want to live…[Read more]

FMS wrote:

Terryw wrote:
You are incorrect here. An offset account is completely different to redraw. You could be creating a very messy and costly situation by using redraw.

I suspect sanasar may have been given incorrect advice at branch level in regards to offset v redraw as they will tell people it is the same thing?

I had a bizarre…[Read more]

Oh dear! You have been paying down a rental property loan. This would cost you thousands of dollars in extra tax and interest over the years.

You should speak to a broker about your borrowing capacity as you may be able to afford both. Get some tax advice too about how to structure things so as to save some tax.

You are incorrect here. An offset account is completely different to redraw. You could be creating a very messy and costly situation by using redraw.

PLC wrote:

Terryw wrote:

jate wrote:
Would anyone ever use a Line of Credit to pay off monthly loan repayment interests instead of taking it out of a normal transaction/savings/offset account? or will the banks somehow not really allowed because it too is 'borrowed' funds?

For example:
Property A – Loan – Monthly interest charges…[Read more]

jate wrote:
Would anyone ever use a Line of Credit to pay off monthly loan repayment interests instead of taking it out of a normal transaction/savings/offset account? or will the banks somehow not really allowed because it too is 'borrowed' funds?

For example:
Property A – Loan – Monthly interest charges $111.11
Property A – LOC – $100,000…[Read more]

A Russell wrote:
My daughter and I want to buy investment properties however to protect my current assets I have been advised to set uo a company. In my situation is it better to Have a company or trust

Best to get proper legal advice on this. Companies or trusts may not protect your current assets to any great extent.

There are lots of other…[Read more]

Be very careful about this. Multiple legal issues involved.

From a tax perspective this could be a rebate. Actually it could even be treated as income.

Paterson00 wrote:

Qlds007 wrote:
Charlotte which lender did your current broker advise and why?

From what you told me by email i have an idea who i would have recommended especially with 100K deposit but always interested to hear what someone else in the industry recommends.

Just ask your Broker do they own a property or two and then…[Read more]