And, I should add, if there is a profit, then this would go to the owner of the property after all loans, interest and legal expenses etc had been paid.

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If a mortgagee takes possesion of a property and sells it, and there is a shortfall, they will go after the person who borrowed or guarranteed the loan for this shortfall. They will be taken to court if necessary and a judgement may be issued.

Once they get a judgement, then they have to enforce the judgement. they can do this by getting court…[Read more]

Originally posted by Property WA:
Thanks Cata,

But does that mean that income and/or losses will be trapped in the company as opposed to being passed to the HDT for distribution?

Don’t forget, losses cannot be distributed from a trust. Only income can.

(Hybrids enable the borrowings to be done through an individual who claims the…[Read more]

Elka

Just reading through that new trust book now, it seems trusts are fairly safe in family law situations. Though they may not be 100% safe better off with one than not.

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The owner would be the company, so XYZ Pty Ltd as trustee for the Smith Investment Trust (check with your solicitor)

But the loan should be in the unit holder’s name, not the company. Who this is would depend on your situation, but would probably be the higher tax payer in your family.

Terryw
Discover Home…[Read more]

Originally posted by elkam:
Is it readable for the layman or do you need some accounting / legal background. [grad]

Can I get the ISBN number from you please?

Thanks
Elka

Hi Elka

The book is $250!!!!!!. It is fairly easy to read, I think, much easier reading than Chris Batten’s stuff, but a bit more advanced than Dale Gatherum…[Read more]

Hi Cata

Thanks. No bad experiences yet, but you never know. I am just interested in structuring for some strange reason!

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He could argue that you purchased his share as trustee for himself. A lawyer should be able to draw up something to document this.

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This is probably aimed at preventing the onwers from selling to anyone else and/or increasing the loan. How long is settlment? It does seem to be unusual!

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When I went to the intro seminar, I (and many others) got the impression that the 4 day seminar was on investing. Well, the first 3 days were on mental development/motivation type stuff. This is fine if you know what you are signing up for. The forth day was on investing, but I found it a bit general, and some things similar to what I had read in…[Read more]

There is a great book on trusts which I am just reading:

Trust Structure Guide 2005. By Harwood Andrews Lawyers and the Taxation Institute Australia.

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Xenia

I agree. But Super is complusory, so why not set up your own fund so you can control it yourself.

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Elka

Sorry, cannot think of a for instance off hand. Not all trust deeds are properly drafted, so some may leave out things that you may want to do, like run a business, or may not include a wide enough definition of beneficiaries, eg. step children if you were to remarry etc.

I think with a hyrbid, the trustee still has the option of not…[Read more]

If you sell, you can increase the loan and claim the interest. The released funds then can be used to pay down the home loan, and you can still claim the interest – as the purpose of the loan was to buy an investment. May not work in all cases.

Anotehr option is to sell to your trust.

Another way to channel equity into your home loan is to…[Read more]

Police will probably not be too keen, but ASIC will.

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Hasn’t it already burst?

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Unless you are buying the whole building like Dazzling’s friend, then I agree with Nigel that car parks are a waste of time and money.

What sort of LVR can you get? Probably something like 60%. There are substantial risks such as govt taxes increasing, competition springing up and probable low capital growth.

If you are only getting 6% yield,…[Read more]

Why not give your bank another option. Ask them to increase the loan on your investment (separate account) and then use this as deposit on the new home loan – maybe even with a different bank.

That way you can keep the 2 loans separate and not cross collateralised. This will give you more flexibility in future and create less…[Read more]

two weeks is a lot of time, many people only see their broker a few days before the auction!

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Snowflake

ANZ let the brokers order valuations direct, so just get your broker to order the full valuation. If that doesn’t work maybe consider another bank.

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