The only trouble with personal loans is, they can be harder to get than the home loan! I have seen a few use credit cards for deposits.

Terryw
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Keep em coming Peter!

Terryw
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Ptn,

No they haven’t! Will send again.

Someone else here mentioned a 6 month settlement with BW because they were slow. Now I can beleive it.

Terryw
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Let me elaborate.

IO = Interest Only

100% offset account is a savings account linked to the loan. Money in the savings account is offset against the loan saving you interest.

eg. if you had a loan of $100,000 and $10,000 in the savings account, you would only be paying interest on $90,000 of the loan.

So having a 100% offset account and paying…[Read more]

I’ve made many mistakes.

– One was buying a property off the plan, assuming/hoping it would go up in value before completion.

– Another was lending money to people.

– not buying as much property as it could afford.

– getting my first loan application rejected, and giving up, not applying elsewhere

– beleiving what a real estate agent…[Read more]

You shouldn’t have any named beneficiaries in a trust, or the lenders may want a guarrantee from them. Seen this happen this week with RAMS. Man set up a trust, then changed the trustee to his mum, but he was a named beneficiary so the lender has asked for guarrantees from him as well as the mum.

From what I have seen, it is easier to just buy a…[Read more]

Why not use IO? Your payments will be lower, and allow you to invest elsewhere. If you have spare cash, you can always put it into the loan at your own discretion.

Couple this IO loan with a 100% offset account and it will be even better.

Terryw
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What about keeping a certain amount in your account. If they want to see deposit (usually don’t these days), then show them this, but you can still borrow money from elsewhere. This may be hard to do if you want to use all your money for deposits, but it will also act as a buffer if things go wrong.

What about increasing the loan on your PPOR…[Read more]

How much will the reno cost? If you increase the loan to 90%, you may be paying a lot in LMI.

You don’t know the valuation will come in low. Why not risk $100 and take it from there?

Terryw
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Don’t worry too much Anita. A hybrid may have saved you a little in tax however. Still better in the long run than holding them in your own name.

Terryw
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Yes you would need a ABN.

You can probably convert your trust to a hybrid, but would probably not be able to borrow to buy units for these proeprties as they are already owned, but check this with a good accountant.

Terryw
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Hi MJ

This is a complex area which I do not understand. The area I was thinking of is Division 7A loan agreements. See http://www.lawcentral.com.au

Froma brief look, it may be only problematic if your company lends money to the trust and this trust later lends money to an individual.

Without these agreements, any money lent may be deemed a dividend,…[Read more]

You pay stamp duty on the transfer amount. Where there is a house or not is irelevant.

Terryw
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Thanks Forlift. Will look for that.

C2, am building in Thailand soon. Wife is building in Japan soon also.

Terryw
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My understanding is, the trust pays no tax if money is distributed. Any gain is usually passed on to either a person or a company. The money passed on retains its character, so a gain passed on remains a gain in the hands of the receiver. If a person gets it, then the 50% discount can apply, if the CG goes to a company, then it won’t…[Read more]

If you have no other benefificaries with lower tax rates, then you can distribute to a company which will pay tax at 30%. Company can then hold the money and distrbute it to shareholders, or lend it out to the turst. But there are a whole series of rules relating to this, so you had better discuss it with your accountant.

With most trust deeds,…[Read more]

http://www.bantacs.com.au in up there somewhere.

Terryw
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Still waiting for that reply from Bankwest!

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The bank shouldn’t have an issue. The security has increased in value, so the loan can increase. They don’t know about the units etc. That is an accounting entry.

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Yes again. I suppose i should clarify. Fees for the preparation of your tax return should be deductible.

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