Lets hope your solicitor has heard of these.

Solicitors are like accountants most do not know about trusts, although it is a subject of their law degrees. I had a solicitor as a client who had 4 investment properties in his own name. I asked him why he didn’t use a trust and he just didn’t understand it all.

Terryw
Discover Home…[Read more]

Originally posted by DaveA:

As for accountants a lot of them are simply USELESS and know very little about trusts. Ask them what a “Hybrid Discretionary Trust” is and most of them won’t know the answer.

i very much agree to this, i am actually a unversity undergrad studying accounting in my final 6 months, nothing we have done have covered…[Read more]

Yes, Trust Magic is the best book on trusts for the average person. It is written in a very easy to understand way. Well worth the money.
http://www.gatherumgoss.com

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by tom1000000:
Originally posted by Terryw:
yes, there are many different deeds so the accountant can help decide if you need a unit or discretionary or hybrid etc. Also the accountant can help decide who does what role. eg if you put your son as appointor you will never be able to distribute to him = one of my clients did…[Read more]

very interesting Andkoz, please keep us informed how you go.

Terryw
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Maybe you need to sue the body corporate. Probably best to talk to the department of Fair Trading. I think they handle these sorts of problems.

Terryw
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You can borrow the equity and on lend it to your trust. You will need a loan agreement in place.

Or your trust could use your home has additional security = Cross collateralising. The first option is more flexible.

Terryw
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As Michael would say, by selling your are getting rid of the goose that lays the golden eggs.

What about keeping half and selling half?

you are not really investing if you build and sell, you just have a business. What happens if you cannot work, your income will stop.

Terryw
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Terry@discoverhomeloans.com.au
Send an email to…[Read more]

Whats the purpose of the loan?

eg.
$100,000 loan on your $300,000 home
$100,000 loan on your $300,000 investment property.

If you were to increase the loan on the investment property to $200,000 you could pay out your home loan. You’re IP loan will then really be two loans of $100,000 each.

Deductibility depends on the purpose not the security.…[Read more]

I agree

Terryw
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Oh, and how many deposits you can get will depend on your equity and the size of the purchases.

Terryw
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You may be able to get a 100% loan, but generally you will need at least 5% deposit. You will also need around 5% of the price for costs such as stamp duty etc.

Terryw
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Originally posted by Nobleone:
Here’s one for forumites to get their collective teeth into…

Aus PPOR valued at $375k – Owe $220K – $135k personal LOC plus $85K investment LOC…

Investment LOC currently has $48k sitting in it being slowly eaten away by monthly interest…

4 x CF+ IP’s in NZ owned through Aus company & trust set up – Cannot…[Read more]

I agree that the 100% offset account is the best option. Sounds like you know what you are doing.

If you were to use a LOC it would not work the same way.

When you pay money into a LOC it is considered a repayment. And when you take money out it is considered new borrowings. So if you were to pay down your LOC to nil, and then redraw the money…[Read more]

Really, what can go wrong? If you have landlords insurance and 12 months in advance.

But she may ask for some of those chrome poles to be installed.

Terryw
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yes, there are many different deeds so the accountant can help decide if you need a unit or discretionary or hybrid etc. Also the accountant can help decide who does what role. eg if you put your son as appointor you will never be able to distribute to him = one of my clients did this!

Terryw
Discover Home…[Read more]

Maybe she was just embarrassed to tell you she was a stripper. If you have landlord’s insurance, then what could go wrong. Getting the rent up from would be great for you to dump into the offset account against your home loan, but it may also mean you have a higher than usual income for this financial year followed by a lower income…[Read more]

Wayne

Look at the link to the actual legislation, it has an example there too.

It sounds like you may be exempt from CGT, on your former PPOR. There was a period when you had two PPORs from July to Dec 05, but this should be ok as the 6 month overlap rule could apply.

I would have thought your accountant would know this stuff.

Terryw
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Its a complex area with many accountants not even understanding things. I don’t use a hybrid, so have not really looked into these closely.

I think many will fail because there are some crap deeds out there, and some people or their advisors are not using them in an acceptable manner. eg all the tax deductions claimed by the individual on the…[Read more]

Hi Have a talk to a financial planner regarding which funds. I would be reluctant to name them in case they bomb out. There various sites where you can search past returns. one is http://www.morningstar.com.au I think.

Terryw
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