BTW, the guarantee is not just a phone call, but a legal document with most lenders requiring the guarantor to go and see a lawyer to get legal advice. The lawyer must sit down and explain that if the person on the loan cannot pay then the guarantor will be required to pay the loan, if they don't they can be sued etc. There are added costs for…[Read more]

Not really.Say you are earning $30,000 pa as a chimney cleaner. You set up trust A and buy a $100,000 property in this. The bank takes your income into account and the rent into account and approves the loan with you guaranteeing the loan.You then go back to the bank and they say no more lending, your $30k income is not enough to support a second…[Read more]

Hi SteveThanks for the reply.  I think the issue may be that you are dealing with the business banking sections which may have different rules for high net worth clients. I don't deal with BW or NAB much anymore so am not aware of their current policies (I am getting out of broking in the near future). Maybe someone who has used them lately could…[Read more]

Land tax is the major pain with Trusts, especially in NSW. It is still possible to use a unit trust and get the threshold, but if you do this you will lose too much flexibility.Hopefully the future tax savings will out weigh the extra land tax – but there is no guarantee, especially in flat markets.There is also the possibility of future changes…[Read more]

You shouldn't get getting this sort of advice from accountants Jack. Its legal advice.There are a number of reasons why a person could be sued. Many are business related or even investment related. eg say you bought some houses and then you set up a trust and bought a few more. Things go bad, you lose you job etc and the bank starts recovery…[Read more]

One of my clients has just found out he has cancer. Approached the banks and they are willing to defer the interest payments on all his loans and credit cards for a few months. They don't waive the interest, but just let it capitalise for this period.I doubt you would get it for less than serious reasons.

Chris, its not where the 30% goes, but how the remaining 70% is borrowed that is the problem. With hyrbid trusts the owner of the property is usually not the same as the borrower and this is what creates the problems.

Hi SteveThat is not my understanding.Even many years ago the lenders used to check all companies that appear on someone's craa. They often do, and did, craa checks on those companies to check borrowings and defaults/court judgments etc. They also used to ask for financial statements for all companies that an applicant was director of. This is not…[Read more]

yep, a pdf version.

It certainly helps, but it still may not be enough as banks tend to only count 70 to 80% of the rent and often assess the loans with a buffer interest rate of 2% more than current variable rates – and sometimes at PI too.

Fancy names for basic proceedures. Just go and see a good lawyer. for the second, what you do is set up another trust and place a second mortgage over existing property. There are no stamp duty or CGT consequences as there is no transfer.Incidently there was a Federal court case in the last few weeks favourable to hybrid trusts (forrester from memory).

Deeds also need to be constantly updated as legislation changes too and circumstances change.

Just ask one of the banks if you need to declare personal guarantees and see what they say.

Most properties have problems, especially 50 year old ones.I would try to withdraw your offer and then make a lower offer – work out approx how much it would cost to fix.

Don't sign anything without running it by your solicitor.Personally I would amended it slightly by specifying  a bank and the loan amount. If they don't accept it you can say you will find someone else.

YEah, no need to cross collateralise.

Try Michael

I've been a broker for 10 years and don't believe it is possible to do as described. I am surprised that it is being promoted again.

I am reluctant to say anything more as this is Steve's forum. Its a good marketing concept – unlimited finance!

Gifting = same as selling for GCT and stamp duty