You/your company would need the full real estate licence to do that – only takes a 3 month course these days.

trakka wrote:
Thanks, Karen, for your completely reasonable response. Thank you also for assuming that I'm raising this issue in good faith – because I am! I guess I like accounting sheets to balance. Let's say I have a $1M asset with an $800K debt in a Trust for which I am Trustee and a beneficiary (so I can gain control of the asset), and I…[Read more]

http://www.mycreditfile.com.au get a copy of your file to see what you are up against. Many banks will still consider the small defaults and teleco type stuff. But if you have anything listed as unpaid they generally won't. It may also be possible to remove certain listings such as defaults.

Hi KHave a look at the PDF booklets on http://www.bantacs.com.au . There is one where this question is answered, but I can't remember the answer atm.

I would look again at using a DT. These days any losses will be small and future gains in income and capital should make up for this.Using a HDT would be only slightly better than using your husbands name. It won't allow can tax savings later on, but I guess it would allow the trust to redeem units later on and convert to a DT without stamp duty -…[Read more]

It is getting hard to access equity as the lenders will want to know what you are using the cash for – and if you say living expenses they are unlikely to live.Getting a full time permanent job (until you get the loan) may work.

neilvs wrote:

Terryw wrote:
There is nothing hard about financing properties. If you can keep coming up with the deposits, you can keep getting finance.

Hi TerrySo let's say I want to buy a $200K investment property. I have $40K deposit, but that's pretty much all i have.I can also show (the bank) that the property pays for itself in that it…[Read more]

You will certainly need a good income to keep on borrowing in this sort of climate.

based on the title. Can't usually have other people on the loan unless on title, one exception is spouse – married and defacto. Guarantors should have no effect on the grant.

Nil to 0.5% seems the deal these days. Probably get nothing on the Mezz so you would have to charge the client

You could sell to your DT and then use the funds to pay a very large deposit on the new PPOR in Perth – but work out the tax savings v the stamp duty and remember that any loss in a DT cannot be used to offset your personal income.Also consider that you are only in Perth for a short time and what will happen if you buy and then move out in 2 …[Read more]

There are a range of tax issues there. Companies pay a flat rate of 30% and no CGT discount etc etc. But there are also Fringe Benefits Tax issues if the company you are a director of provides accomodation etc.You could reside in one property which you rent from a company you own and pay market rent and you are paid a wage by your trading company.

If your accountant is recomending hybrid trusts then be careful. They may not have a good understanding of taxation. Purchasing in your own names or doing 99/1 will save you a little bit of tax now but may create a tax time bomb. What happens when your property starts making a profit? = you will be paying more tax than you otherwise would. Turning…[Read more]

If its an investment property you may be able to deduct the whole of the fee in the year it is incurred. This plus other borrowing expenses and tax deductions could bring your income way down and save you a heap of tax which will take a little bit of the hurt out of it.

I would recomend setting up a discretionary trust too. Do some research on these.Setting up an ABN for property investing has no effect on tax claims. You only need an ABN if you are running a business. GST only applies to businesses turning over more than $75k pa. residential property is not affected by GST either.

A buyers agent finds you the property whereas a Mortgage Broker finds you the loan. They are separate. If you are going to look for a property, then it may be better to approach the mortgage broker first and get your pre-approval. otherwise you may not know what price range you can afford.I am in Sydney but am not taking any more clients on, but I…[Read more]

Good in theory, but extremely difficult to actually do.You can put down any deposit if the vendor agrees to it. You will also need special conditions in the contract to make sure the vendor agrees to let you show the property to prospective purchasers too. Once you have found one you need to make sure they can settle by the date you need to…[Read more]

Why not just go to a bank and purchase outright?One more point, if you want to build on the land, you won't be able to get a loan unless the title is in your name – unless the vendor funds this too.

maybe you just need some find someone who could help with the 20% deposit and borrow 80% of the purchase price – assuming you can demonstrate serviceability. Banks are running extremely slow atm, settlement is just over 2 weeks away so even that won't be easy.

But Richard, it done correctly it can still be good in a stagnant market as you can pay off non-deductible debt faster and get bigger deductions – so overall loan is the same size – of course it can't look like a scheme to reduce tax though!