One advantage – maybe the only one – is that if you have one loan on two properties then you may avoid deferred establishment fees on the sale of one property.

You need to consider the ATO's recent view on hybrid trusts:https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4324208You maybe able to negative gear in the trust if it is set up to be commercially viable – the negative gearing recipient will probably have to get all the capital gain without any flexibility. It will be…[Read more]

Same in NSW, company title is not popular at all and hard to get finance for. I have heard that one expensive block in the city was actually make company title so as to control who could buy in the building – other shareholders had to approve who you could sell your unit to.

lordoftheundead wrote:
Could someone please verify my understanding of discretionary trusts with a compay as trustee?1) set up a company that will hold no assets of its own2)set up a trust with the company as trustee and a couple of people as beneficiaries (the company can also be a trustee and therefore have a max 30% tax rate)3)funding hmmm,…[Read more]

This means if the bank knows you are wrapping, they will not lend at all. If they don't know you may still be able to do it, but you would be breaching the loan agreement with the bank.

If you get it for $160,000no stamp duty etc,say $1000 for legals$20,000 for renototal cost base is about $181,000 – forgot LMI, that will be up to 3% (maybe less) = $4800total cost base of $185,500Add to this holding costs of interest on all loans, rates, insuranceThen sell for say $200,000. You will have agents fees of about 2.5% = $5,000Legals…[Read more]

Not possible to get FHOG if the property is owned as trustee.Even if you could the Stamp duty payable on the transfer from her name to both names would eat up a large portion of it.

for NSW look at thishttp://www.maddocks.com.au/download/property-june-2005.pdf

One of my friends has gotten himself into a bit of trouble by cross collateralising. He had 2 properties crossed. he then got into a bit of financial trouble and tried desparately to sell one property, but the market had dropped and he had to reduce the price. He eventually sold it, but then the bank wanted to do another valuation on the existing…[Read more]

Lenders do not like wraps for a variety of reasons and are unlikely to lend if they know about it. Some larger wrappers have gotten around this by having relationships with branch managers of larger banks who may be able to bend policy.Lease options would be easier to get finance for, but even then if you tell the lender that you will be selling…[Read more]

You can strata duplexes and they will then have separate titles and can be sold separately. Otherwise you would have to subdivide the block again and have each property within the boundaries.

JosephThat sounds cheap. I remember at one stage Bluestone, another non-conforming lender (now gone) was charging up to 4% DEF in the first year.!!!

HiThese are options. An option is a contract to purchase or sell an item at a certain date in the future. The option quality of the contract means you have the option to take up the purchase or the sale, but not the obligation. There is usally a option fee involved with entering the contract – but this is totally negatiable as are other terms of…[Read more]

Hi DomInteresting question.I don't know the answer, but would think it would be the same as the income received is rental income. It is just the security that is different – shares in a company basically.

JosephThat sounds cheap. I remember at one stage Bluestone, another non-conforming lender (now gone) was charging up to 4% DEF in the first year.!!!

Hi KenzalThat would be messy! But i think many people are in this boat. I think what happens is the expenses should be worked out on a percentage. eg if the balance is $100,000 and you have used $30,000 for investment/business then only 30% of the interest is deductible.But it gets even messier. If you were to deposit money into the account over…[Read more]

Hi SimonI can't understand how it could take so long, unless documents were missing etc. Lenders do run slow sometimes, maybe a week to look at non-urgent deals etc. 2 months is a long time!!!!

This is a good reason why you should never use a conveyancer. They cannot provide legal advice, but just do the transfer. If some problem comes up they are useless.

phungu wrote:
Hi All,I'm looking at transferring my parents house into my name. Any ideas on how I can pay the lowest possible stamp duty? I am in VIC and know that you are required to pay the higher of the sale price or market price.However, any ideas on how the SRO measures "market price" will it be a look at similiar properties and recent…[Read more]

Yes, having a company will not help servicing if you have problems getting loans in your own name. The lenders will be relying on the guarantor's income.A possible way around it is to get a friend/family to be involved and get them to be director of the company – it is a big ask though.