There are a few that lend to casuals who have been in the one job for 12months, so you are nearly there.

A Low Doc loan is one where you do not have to provide evidence of an income. Generally still have to have been employed for 2 years tho.

Terryw
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Your friend sounds correct. If you are living in the house, and have no other, then when you sell you should be free of CGT. But if you are doing it with the intention to make a profit, ie a business, the ATO could assess the profit as income.

Also, if you have another place, you can only claim one as your main residence at any one time (except…[Read more]

Hi Pos

With a hybrid you will own the income producing units. The trust owns the asset and distributes the income to you so you can pay the interest on your loan. There may be a shortfall, so this can be offset against other income (negative gearing).

You get the loan in your name, but the trust buys the property – it all happens simultaneously.…[Read more]

Hi Elka, yes, sounds like you are self employed!

Terryw
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In my opinion Discretionary trusts are much more suited to owning property (and other assets) because of the asset protection issues and the great flexibility in profit distribution (=tax minimisation).

Companies do not get the 50% CGT reduction and profits must be distributed to shareholders in accordance with ownership %.

Terryw
Discover Home…[Read more]

Bridgebiff, I am not sure what you are saying here??

On any loan you should only have one security – otherwise your loans will be cross collatoralised (= no good). This does not mean that you need to have each property with a different lender.

Terryw
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Silly really isn’t it. But most low docs are only available for self employed. One way of proving self employment is having an ABN, hence most lenders ask for the ABN number so they can check on how long the person has been self employed.

Terryw
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If it is in NSW, send me the address and I can look it up on RP data. Otherwise go to the website of the Landtitles office and you can do a search for around $10.

Terryw
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Originally posted by Dean and Kristy:
Thanks for all the feedback, especially you Steve.

I’m still a little confused as to why you just couldn’t register a ABN and run it like any business. This would be a lot cheaper than setting up a company or trust and would it be possible to claim all the renovations as expenses. Also you or your partner…[Read more]

Originally posted by Bootlace:
Originally posted by Terryw:
Trusts can help cap tax at 30% as they can distribute to a company as a last resort. Company tax rate is a flat 30%.

While certainly theoretically possible, wouldn’t that defeat the purpose of a trust entirely?

Although i certainly don’t profess to be an expert in this area, if someone…[Read more]

Originally posted by ftareen:
I am new to the forum, would like to know if anyone can recommend a good accountant in Sydney Hills district around Cherrybrook or Castle Hill?

A friend of mine, John Vincent accountant is in castlehill I think. He is in the whitepages.

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

Generally lenders will want to see a good history of income for casual workers. ie about 2 years. This is because the hours can vary so much.

Another option is a Low Doc or a No Doc. 70-80% LVR.

Terryw
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Sometimes it is worthwhile paying stamp duty and transferring existing properties into a trust. eg. you have a large home loan and lots of equity in an investment property. You need to do the calculation to see how many years of tax savings it will take to save the cost of the transfer.

You can get your salary into the trust by becoming a…[Read more]

Both are correct. Sometimes you can save, sometimes you can be paying more. I think it depends on the project and the developer.

Terryw
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My understanding is that CGT does not apply if you are classed as a trader. A trader is someone that makes money by buying and selling. In this case there would still be tax to pay, but it would be all income tax – no 50% discount.

Whichever way you go, I think a trust of some sort is certainly worth looking at. It will still allow tax…[Read more]

You’ve posted the same question 3 times, see my anwer here
https://www.propertyinvesting.com/forum/topic/26291.html

Terryw
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Terry@discoverhomeloans.com.au
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https://www.propertyinvesting.com/forum/topic/26291.html

Terryw
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Terry@discoverhomeloans.com.au
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one more thing, some lenders charge a bit more for the LOC, around 0.10% extra. Sometimes a standard loan with a redraw can work similar, but have a lower rate.

Terryw
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Its all to do with taxation.

If you take money from on offset, it is not borrowings, so the extra interest incurred if used for investments is not deductible (unless the original loan was).

Taking money from a LOC would mean the extra interest is deductible.

Which do you need will depend on your circumstances.

If you have a home loan,…[Read more]

Disadvantages over normal loans are generally higher rates and higher fees – especially exit fees. But the major disadvantage is that most low doc loans are mortgage insured. This means restrictions on property type, location and maximum loan amounts and overall maximum lending.

And to add to this, the ATO could audit you or your bank and assess…[Read more]