Hi Lesia

Yes that brings back memories. There was a lot of dancing and jumping around – probably 10-15 min per hour at least. Lots of video watching (We watched Titanic and another movie with Kevin Costner and baseball). Supposed to be inspirational. HAd to take off shoes at the door, and Roy did squirt people with a watergun (for coming back…[Read more]

Discretionary Trust is kind of class of trust. There can be many different discretionary trusts because each deed can be worded differently.

A hybrid discretionary trust is a mixture of a discretionary trust and a unit trust. It can act as a discretionary trust until you need to issue units, then it can act as a hybrid, so it can be good to set…[Read more]

The title is in the name of the trustee. There is no mention of the trust anywhere on the title. Some then place a caveat on the title on behalf of the trust to make sure it can be easily proven to be trust property, if need be.

The trustee owns the property on behalf of the beneficiaries. If the trust does not make its mortgage repayments, the…[Read more]

I did the course many years ago. They had a money back guarrantee then. I was not impressed and asked for my money back.

Do they still offer the money back guarrantee?

Terryw
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Ni hao Anson

I am a mortgage broker based in Sydney!

Terryw
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Depending on equity, end value etc, you may be able to capitalise the interest in the loan.

Terryw
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You may be able to do it in NSW if you are getting a divorce and have a court order.

Terryw
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Depending on which bank, you could probably get a portion of the June settlement back, but not the others as they are too old.

Terryw
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There are two ways to own an asset:

1) Legally
2) Beneficially

In a trust, the assets are owned by the trustee legally, but a owned by the beneficiaries beneficially.

eg. Say I buy a proeprty in your name. Maybe the house next door is forsale and I don’t want them to know it is me negotiating. I buy it in your name. You are the legal owner, but…[Read more]

Yes, just approach them about it. Some may not be too keen, but others may not ahve much choice in this sort of market. I know of one developer in Sydney doing it. I think he offers 10 years interest free. ie repay the principal (of the 20% deposit he lends) over 10 years.

Terryw
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Just think what could happen, the market drops, you lose your job, the lender forcloses on your property, but there is a shortfall of, say $50,000. The bank will also have a mortgage over the proeprty of your parents. This means they could foreclose on their property too.

Maybe a slim chance of this happening, but you never know.

Terryw
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Audrey

I thinkk it may work in some states, but not in others. If the trust was not in existance on the date of exchange, then it may not be able to be nominated – without paying stamp duty again. Better check this with your solicitor before trying.

Terryw
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This doesn’t seem to be a owner builder type situation. Carl needs a loan for a straight out purchase which he will renovate. The trouble is his income. Carl, you would need around $55,000 pa income assuming no other debts and $350 rental income, to service something like this.

Maybe the best way around this is as Josh suggests, get someone else…[Read more]

I owuld think you have to look at other properties in the area – ones similar to what your’s would look like when finished. Then compare what these are selling for to what your total project will end up costing, ie valuation now plus extensions.

Terryw
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Yes it can. But if not done properly the ATO can disallow the deductibility of interest.

Have a look at:
TR 2002-18 – “Income tax: home loan unit trust arrangement”

Available from:
http://law.ato.gov.au/pdf/tr02-018.pdf

Terryw
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You wouldn’t be the only beneficiary. What about your parents, grandparents, spouse, future spouse, mistress, children, future children, future step children, future in laws etc.

Even if you have no one now, you don’t know what the future will hold.

Plus there are other benefits including estate planning – I suppose this won’t matter if you have…[Read more]

Better seek some good advice. Companies are generally not favoured for holding property as they do not get the 50% CGT concession. Look into Trusts.

Terryw
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Don’t know what else you can do.

If something did happen after you had pointed all this out, there would be some serious suing going on!

Councils have duty of care, if they are aware of a prolem and do not take steps to rectify the problem, they are in breach of the duty, and could be liable for damages if someone is injured.

Terryw
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I think the LVR would depend on the shares. Some shares are considered more stable that others. Probably 70% LVR would be the max, so aim a bit lower, maybe 50% to help you not worry too much about margin calls.

Tax deductibility would depend on the use of the funds, not the security.

Terryw
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We used to use “Hodder Rook” a lot, located in North Sydney.

Terryw
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