Well, it would depend on what the funds were used for. If for personal expenditure, then you would be creating a mess. If for the property or other business related stuff you should still be able to claim the interest, but you may have to apportion the amounts in your tax return.

Terryw
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Yes before some lenders didn’t want to lend for low doc loans where a trust was involved. But this has changed.

ps. I make some terrible spelling and grammatical mistakes don’t I!

Terryw
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Most No Doc lenders will lend up to 70% LVR to people who have been self employed for a min of 1 day. eg. Macquarie, Rams etc

Terryw
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Bankwest recently announced they can lend up to 95% for large acreage properties, but no working farms, up to 100 acres from memory. But there will be limits at high LVRs. Probably 95% LVR would be up to $750,000 max.

Terryw
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You will have a hard time getting a loan. Low/No docs are generally around 80% LVR, but there are some that go to 95% with rates around 9% pa. However, for a $200,000 ppty, 5% would be $10,000 plus there are costs on top of this. Also these loans generally are only available to people who have been self employed for 2 years or more.

How much…[Read more]

Hang on, maybe the units are worth more than you purcahsed them for? In that case you can possibly sell before settlement.

Terryw
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Speak to a solicitor. You may be able to get out of the contract. If not you will be sued for the 10% deposit and possibly more.

Terryw
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Not really. Banks and valuers are aware of these things. Rent does effect valuations, but it is not the only thing. But every little bit helps.

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I beleive things go on as before. The executor of the estate takes the deceased’s place.

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What about something like this:

“in the event that the lease agreement has been terminated prior to the exercise of the option, then the option is deemed to have lapsed and the option fee foreited.”

Then cover in the lease agreement things that can cause the lease to terminate.

Terryw
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Hi Robbo

Not sure about the super side of things, but why have a unit trust? With a unit trust, all the income is fixed in accordance to % of unit holdings. Its like holding shares in a company. So at tax time you will have no choice in where the income goes. ie no flexibility at all.

But if you had a discretionary trust or a hybrid trust, (or…[Read more]

Carlin

Off the top of my head, I cannot think of one lender that won’t lend for trusts.

Terryw
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What does your contract say? Probably says the vendor can charge your pentaly interest if you do not settle on time, but not the other way around.

These days nearly all banks offer a rate lock in facility for fixed loans. If you think the rates are likely to rise before settlement, you can pay a fee and they will hold the rate for…[Read more]

You must be very familiar with the country you are living in, must know the relevent laws and proceedures – eg. eviction of tenants, tax, lending etc.

For most people, I would say why bother. There are plenty of opportunities here is Australia, so why take the extra risk and/or complicate things.

Terryw
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You must be very familiar with the country you are living in, must know the relevent laws and proceedures – eg. eviction of tenants, tax, lending etc.

For most people, I would say why bother. There are plenty of opportunities here is Australia, so why take the extra risk and/or complicate things.

Terryw
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Cosmocom, this could mean more tax. With the profit being classed as a capital gain you are entitled to the 50% discount. If it is not classed as a capital gain, then you don’t get the discount.

Terryw
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You should talk to a good accountant about operating through a company and or trust structure. There are various rules now preventing people doing this, but it may still be possible.

Also maybe consider using a service trust. This will help divert income into a discretionary trust. eg. the trust could employ you and rent your services out to your…[Read more]

I can’t see what all the fuss is about. You can set up a trust from as little as $275 – a good trust. Land tax may be a little bit extra, a $1000 or so per year. You can do your own tax return, so why not set up a trust??

Worse case scenario is you pay a bit more land tax, but this is offset by income tax savings, CGT savings, asset protection,…[Read more]

If property is growing stongly then it would be best to hold as much as youcan a quickly as you can. The net worth will come automatically.

But in reality, you have to be comfortable servicing the loans and also need to allow a buffer for interest rate increases etc.

Terryw
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Hi Carlin

Seems like you have been thinking about structures for ages!

I haven’t read any of Margaret Lomas’ books, but from what I have heard and seen, her company targets mum and dad investors. ie the average investor. If you want to be an average investor, then follow her advice, if you want to be rich, you had better do your own research…[Read more]