a business is not a separate legal entity, so they cannot own property. The only options for owning property are via a personal name or a company, or either as trustee for a trust.

A Trust is well worth looking at.

Transfering properties over to a company or trust will result in stamp duty, and possibly CGT.

Terryw
Discover Home…[Read more]

It is interesting the ATO has not withdraw another similar ID issued close of the other one:

ATO ID 2006/297
Income Tax
Deductibility of compound interest» on a split loan f…[Read more]

Sometimes it can be costly to bring the standards up for strata titling. – eg meeting requirements for fire exits etc.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

And don’t forget, tax can be minimised even further by using trust structures.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Maybe the value has increased? If so, you can probably sell before settlement, or maybe get a loan based on the value. If it has risen enough, you may not even need a deposit. I have had a few clients recently who are settling off the plan. prices in Sydney and Brisbane have increased slightly above the contract prices.

Not settling could be…[Read more]

Originally posted by BreakEven:
Im interested to know what u mean by ” planning so you can get many more loans down the track”?

How can a good broker help here?

[blink]

Ask yourself “Do I have the COURAGE to be free….?”

Hi Breakeven

Most people don’t realise that there are various restrictions out there, especially with LMI companies and…[Read more]

Dee dee, Its a bit hard to say when you don’t mention who the bank is. Usually offset accounts cannot be on fixed loans, but can be on IO loans.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

There are some funny brokers out there.

Its not just about getting the best product, but about planning so you can get many more loans down the track.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I’ve bought out a partner before.

It is just like buying a new property, you will probably need a solicitor, titles have to be changed, stamp duty paid etc.

With the loan, basically a whole new applicaiton will have to be done. The lender will need to know if you can service the loan on your own, and new mortgage documents etc will have to be…[Read more]

Hi Bernstar

RAMS don’t like ‘developers’, strictly for residental property.
If no ABN, you would need to provide proof of being self employed for 2 years.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Richard is correct in that RAMS don’t lend for construction loans on a No Doc or Low Doc. There are a few lenders out there that can lend up to 75% LVR based on the end value of the project based on a No Doc with 1 day ABN. This should be enough to cover the costs of construction.

But the best way forward would probably be as Richard suggested to…[Read more]

Trajik

Thats a great idea. Munchwood, you may also move over there and find out you don’t like it too. At least give it some time to see if you settle in before purchasing.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

MAcquarie have no problems with hybrids, RAMS tend to if the trustee is different to the unit holder.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I beleive that would work, ie you can negative gear against your personal income and distribute the capital gain to any beneficiary including a company, but remember the companies do not get the 50% discount on CGT.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with…[Read more]

Mathew,

Since the offset is not a loan, paying money in and out will not affect the deductibility of interest of the loan.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Mathew

Why transfer to the LOC at all? I have a 100% offset account which i keep spare cash in. If you pay down the LOC, you cannot claim the interest on the portion of withdrawals if it is not used for investment purposes.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank…[Read more]

If you are going to use a LOC, St G have one of the best products – called the Portfolio. It can have many sub accounts (maybe one for each property), and these can even be in different names.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Hi Mat

Maybe you are thinking of a big LOC type loan. But this is probably not the best way to go. It can get messy, like you are experiencing now.

I think it is far better to keep each loan/property separate as it is easier to
– increase the loan (only need to value one security)
– leave the bank (no need to apply to uncross the loans)
– know…[Read more]

Originally posted by Quantum Leap:
Hey There,

I have just refinanced with the view to gearing up for a round of investing. This is the first time I have used a Line of Credit (LOC) facility.

I plan to direct all income (PAYG income and rental income) through the LOC. I also plan to use the account for all bill payments to essentially make it…[Read more]

Get some professional advice. You need to worry about things like asset protection – what happens if you buy jointly and your mate goes bankrupt? You could end up owning a property with his creditors. Or worse, he gets divorced.

And borrowing capacity, it you have a joint loan, you will be assessed on the full amount for your next purchase.

Then…[Read more]