Catalyst wrote:
You don't. They will not sell it to you.

The bank will send it to auction. It is the only way to prove they sold it at market value.

Not true. I recently acting for a client purchasing a mortgagee in possession property for sale by an agent.

The bank will use an agent to sell the property so there is no need to contact the…[Read more]

But if the property is neutral or slightly postively geared how are you going to make a profit out of it? You would need a big back end profit when they cash out the option.

I have done a few of these and the 'tenants' make much more than the buyers.

They only way you make money is if they don't take up the option for some reason.

Neil,Y

ou shoud see a professional. You need to work out the deductibile portion and then you should split the loan. Take the terms of your settlement with you. This is likely to be considered a private expense, but depends.

Taking tax advise from a guy a HR is like taking nutrition advice from a staff member of McDonalds.

I've come to the conclusion that very few professionals know what they are talking about. Including lawyers, doctors, hair dressers and travel agents.

I can't believe the things people do! But it happens. One accountant told me one of his clients purchased a residential house in his SMSF and moved into it!. Accountant refused to have anything to do with him after that.

I'm in Sydney too – Lawyer and Finance broker/

DEVILZ wrote:
hmhm true, because it's cross-collateralised it is ONE BIG LOAN isn't it? and both loans have same interest rate

Not its not – or I hope it is not. You can have separate loans but still cross collateralised. (crossing is a bad thing!)

I think it is safer and easier just to pay the GST and then claim it back later. Otherwise the vendor will want to insert a special condition to make the purchaser liable for it if the commission comes back later and says GST is payable – which it could be if it is not really a going concern.

DEVILZ wrote:
as I stated from the start there is a Split IO loan:  $400 K locked and $47 K variable with offset so I can put money there.

but $47 K loan and Unit loan $170 K they have same interest rate @ 5.79

If the owners of both properties are the same then it doesn't matter which offset you use as the effect will be the same.

There is a possibility this will be income tax not CGT.

If it is CG then you may get the 50% discount and that figure is then added to your other taxable income and you pay tax at the marginal rate.

It could be true in some circumstances. No GST if it is a going concern with a few conditions.
You need to be very careful with the contract of sale.

I have a lender that would lend to a bankrutp person 6 months out of bankruptcy. Up to 80% LVR, rate is a bit high at 9.35% at the moment, but it is possible to borrow.

dvestate wrote:
The house will be generating income, my mortgage on the property is 200K, it is worth about 340K and will bring in rent at $400pw

In terms of asset growth I would expect it to be modest over the next 5 years

I

f you were to sell this house that would mean approx $120k cash you release could be paid off the new main residence…[Read more]

Todd Giles wrote:
I have a similar question with regards to the original post and thought I'd chuck it in here instead of starting a new topic.

My question,

Assuming they owe around $170000 ( a guess), i'm also guessing that the property would be valued at around $400,000, would it be possible to purchase the property from them for around…[Read more]

theycallmeBruce wrote:
Haha yes, that's right They Call Me Bruce was a comedy / action movie!

Terry – Great to hear your a CTA, and everything else, all the important skills you have to buy and sell properties, so I guess you save on every transaction? So do you have clients you work with remotely, ie use internet comms 100% without need for…[Read more]

What country ?

Cannot be done in Australia.

Sounds like the bank is selling it. They are not going to want to get involved in any vendor finance arrangement or an option.

Just take it into the LTO and they will register it. It remains in force unless revoked, or is contingent on something.

If it had been revoked then it would be an offense for the attorney to use it and there would be civil penalties and perhaps criminal.

bb2000 wrote:
thanks shahin ill just wait till my credit file is 100% CLEARED and then ill start investing in property, in the mean time i might invest in a business.

It may take 7 years until your credit file is cleared, but having entered bankruptcy will always haunt you.

I would suggest you not hold back, but just plan things carefully.

theycallmeBruce wrote:
Ralph yes very important to get good legal advice to structure your portfolio, and that I would imagine would be best done 1 on 1

Terry, just added 'uses a lawyer' for Active Investor and.. I went to your website, saw your qualifications it looks like you're a Broker, Accountant and Lawyer and can speak Japanese?? That's…[Read more]