80% low docs are available at rates lower than many normal loans. 95% Low docs are very high in rates, 9.5ish.Either way you will be borrowing 100%, with the deposit coming from the LOC, so it won't really help to make a property cashflow positive by putting in more deposit (as this is borrowed too). If it was me, I would be inclined to stick to…[Read more]

I also would suggest it is not wise to buy an appreciating asset in a company as you lose the 50% CGT reduction for assets held over 12 months – which could cap your tax at half of the top marginal rate of 46%. 23% is less than the company rate of 30%.And you certainly should not buy in the same company you trade with. Businesses are often sued,…[Read more]

In some states (or all?) it is possible to transfer shares in a company without stamp duty, unless the company is land rich. ie holding more than a certain value of land. in NSW this limit is about $1mil.

EveSydney wrote:
Thanks for your input. Is it possible then to fix a price taking into account the projected capital growth? How do sellers work out the selling price?

yes, it would be possible. eg. You could offer the tenant an option to purchase the house at a discount of X% against a sworn valuation – or the average of a valuation requested…[Read more]

Ask about exit fees and mortgage insurance, for low docs. These are the biggest worries for low docs. Maybe try to get a large LOC to help with the deposits on further properties.

Tax benefits of a trust result from the streaming abilities – you can usually distribute (with a discretionary trust) to the lowest income earner of a wide range of beneficiaries, this results in lower tax being paid.Trustees have a fiduciary duty to the beneficiaries of the trust. that means they must act in the best interest of the…[Read more]

Hi BoshieLow Docs are generally only 80% LVR. There are some at 85%, some at 90% and even some at 95%, but rates are rather high at the high end.So assuming your property is worth $750,000, 80% of this is $600,000. But you currently have a loan of $505,000. So that is potentially $95,000 in usuable equity.You can stay with your current lender,…[Read more]

Yes, you would just have to apply like normal though. They would need proof of income and a new valuation etc.

I wouldn't be signing up with RAMS normally, their exit fees are too high, though they can be good for low docs in some situations. Now I would be even more wary.

fact.Banks would not let someone take over without making sure they could pay the loan. What would happen if you took over and then stopped paying? The bank would be in the same position. 

If you are buying to take advantage of rising prices, then you may make less profit with by doing a lease option. This is because you (usually anyway) sell an option to the tenant at a certain amount. Later the property values can increase over this amount, but the tenant will still be able to purchase from you at this lower amount. This can…[Read more]

it will still depend on the clients background to a large degree. 1) ANZ or St George2) ANZ or St George3) I like St George as they have their own LMI and they are good with trusts. But they are fussy with wanting to see lots of documents (eg credit card statements). But they charge LMI.Citibank is very cheap at the moment, no LMI, but they only…[Read more]

HiNot sure what you mean by reinstate their loan? If you mean take over their loan, like they do in america, then this is not possible in Australia. You will need to apply and qualify on your own.

Hi LisaI was going to suggest something similar to Richard and Simon. Using IO for all loans, even PPOR, and put all spare cash, including rents, into a 100% offset account against the PPOR, not into a LOC. You can have a LOC attached to the PPOR, but this should only be used for deposits and investment costs. As the funds in the offset increase,…[Read more]

If you could find these people that are about to have their properties repossessed, then you could make them an offer. It is just a matter of finding them. possible sources are mortgage brokers, lawyers, debt collection agencies etc. But be ncareful of the privacy issues.

Trust names don't appear on titles. Just the trustee. The ATO knows because you will submit a tax return in the name of the trust and have other documents backing up the ownership being in the trust name in case this is ever disputed. eg. minute, contract of sale etc Trusts have names, but these are not really registered. You can register it when…[Read more]

Its going to be very messy with 8 people. How are you going to agree on things? (maybe good to have an odd number?).I would probably look at using a unit trust too. But who will be the trustee? Having 8 trustees could complicate things – you will need 8 people to sign eveything!Lenders will usually require guarantees from each director if a…[Read more]

At least with IO you have the choice of paying extra when you have the money (like a PI loan) and can then reduce your repayments if need be. With a PI loan you are stuck in paying PI.

That is a very interesting question.I don't really know, but I suspect the 1st mortgage holder would have stronger rights than the new owner.WIth Bankruptcy, the Bankruptcy trustee can claw back sales of assets up to 5 years after they occur, if they are done to defeat creditors. SO I guess it is possible, and would depend on the circumstances.

CrashyYou could on sell the house, but unless you have a option, you would need to pay stamp duty.