Unpaid present entitlements are monies that have been distributed to you but haven't been paid. So this is essentially a loan. If you were to go bankrupt, for example, they would be payable to your bankruptcy trustee – so it is probably not a good idea to have too much outstanding. Your probably could buy more units in the trust – but I am not…[Read more]

jacqui_03 wrote:
I am in the same position as I am wondering when is the necessary time to change financial structure into a company/trust set up. I own 2 IPs, one in my name and the other in joint names with my partner. My current accountant does not think it is beneficial at this stage to form a company and discretionary family trust. When is…[Read more]

gavsam wrote:
I have a sit down meeting with my new accountant in the coming days, and want to have an idea prior to the meeting regarding his quick trust option proposal: ie: borrow loan from bank in my name which I can offset against the investment property and claim neg gearing?,  but then placing the loan amount borrowed into/against the…[Read more]

Nearmap is excellent. Thanks for the recommendation.

niyiaw wrote:

Terryw wrote:
There will be two tax issues (at least):1) By using redraw you are mixing one loan – business and personal. When you claim interest it must be apportioned, which is relatively straight forward. But if you are making loan repayments you cannot chose to repay the personal debt first. Both must be repaid in proportion…[Read more]

Say you have a loss of $10,000 this year (1st), then next year you have a $5,000 loss, the third year you will start off with a loss of $15,000.You then sell a house and have a capital gain. say $100,000 capital gain. I think the loss is applied first – though actually it probably wouldn't apply first as your loses would be income tax losses, not…[Read more]

There will be two tax issues (at least):1) By using redraw you are mixing one loan – business and personal. When you claim interest it must be apportioned, which is relatively straight forward. But if you are making loan repayments you cannot chose to repay the personal debt first. Both must be repaid in proportion to the loan.eg. $98,000 loan…[Read more]

I personally would prefer houses rather than a unit.Units have low land content. It is difficult to add extensions to a unit and the body corporate can be expensive. You also have to deal with body corporate issues and lose control to a certain extent.

jordanmatthew wrote:
Hi, We bought our 1st  sight unseen IP in regional Victoria  while being mentored by Destiny .  Did all due diligence, had pest & building inspections done , read reports thoroughly – building inspector reported no significant problems.  Soon after completion air conditioning installer noticed missing beams in roof struc…[Read more]

If you are employed then using a trust to receive the wages won't really mean much as the individual doing the work will still be taxed – this is known as the alienation of personal services income. Nevertheless, it may still be possible to do it, or have it structured so that part of the work is attributed to a business run by a trust. There are…[Read more]

Pre-approvals are essentially meaningless.I remember when I was a broker, it was possible to produce a homeside pre-approval from a serviceability assessment without it even being seen by the lender – don't know if this is still the case.I would be surprised that a lender is willing to lend you when you yourself are unsure if you can service.…[Read more]

Depends on the risk and type of investment and if it is leveraged etc.Something like bridging finance for a development is extremely risky, so I guess around 20% over 12 months.

It will be pretty hard to get a loan without income these days. It may still be possible with the private type lenders though -rates around 10% +.If you have redraw, it may not be good from a tax point of view to use without establishing a separate account, but they may be a way to proceed on with your project.

Trust accounts don't pay interest. However it is possible to have the deposit invested in an interest bearing account – needs to be negotiated via settlement – and is generally not worth the hassle unless a large amount and extended settlement.

jxf wrote:
Greetings All,  I am interested to know how one can improve serviceability to be able to purchase more properties.   I have some equity (min $100K) in one of the properties I hold & some cash savings ($60K) which either will be able to cover a deposit on a new place, but since I already have other properties with LVRs up around 80 I w…[Read more]

Its a great method of advertising. say something irrelevant bt make sure there is a link to your website (also largely irrelevant as relates to a different country), then to prevent too much suspicion you just keep creating new user IDs and repeat the process.

Your sort of correct.If you use a house as security and default on the loan the lender can take repossession and then sell the house to cover the loan taken out. However, if you default on a loan and the bank repossess the house and sell it and there is still a shortfall the bank will then sue you and if they win they can still go after any house…[Read more]

It can be done, but with great difficulty and danger.If you want to use the property as security for a new property the second owner will need to guarantee the loan as his security is being used.orA better way would be to set up 2 LOCs on the first property and you use one and he uses one solely. Both names would be on both LOCs – or you could…[Read more]

Just think of the parents as Bank A and now you are financing with bank B.(Can't see how the above post by Galeel is relevant)

If there is a loss built up and he never comes back and later sells the house here this loss should be able to offset the capitals gains.