Hi
I am based in Sydney, but am currently in Thailand for a another week or so.

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.

Very good, but where can you buy land that cheap!?

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.

How big will your loan be?

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.

No, there is no difference. Don’t know what you mean by being charged on home owner mode. I don’t think there are many lenders out there these days that charge differently for owners and investors.

What the ATO looks at is the interest charged.

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

Hi CATA

Yes, a company is safer, but costlier. Each person would have to weigh up the risks of the trustee being sued verses the establishment and annuals costs of having a company.

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.

If you add someone to the title, it is the same as selling. Stamp duty will be payable on the percentage sold, and CGT would apply. Even if no money changes hands, the ATO would require you to pay CGT as if the property had been sold at market rates. Same with stamp duty.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign…[Read more]

A trustee can be a beneficiary.

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 Toni

Yes, can buy shares in a trust. Though there are special rules with regards to dividends (family tax elective).

If you are buying a property, the trust must be set up first. Otherwise you will have to pay stamp duty again when transferring it to the trust.

The title goes in the name of the trustee – which may be an individual or a…[Read more]

Another cost is accounting fees. Hybrid trusts tend to cost more as most accountants do not understand them. I have a client with one property who was paying his accountant $1500 per year to do his and the trust tax return – ( and he discovered the accountant had made a mistake on the last 2 years trust returns).

Terryw
Discover Home…[Read more]

You do not need a company set up as trustee, but this adds additional expenses. Cost of company is about $1000. Having yourself as trustee is free with no yearly asic fees, but offers slightly less protection.

Cost of discretionary trust is about $200+ online or $1000+ with an accountant.

Hybrids are generally not available online, but I think…[Read more]

nope

that’s why it is not good to use a company to purchase property and other appreciating assets.

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.

Any other opinions on this topic?

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.

See this recent discussion
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=23104

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.

Without equity or deposit it will be hard.

Some options include:
-100% loan (eg St george)
– Find a vendor willing to lend you the deposit
– Borrow a deposit

If you rent out your own home, it may have CGT implications – you can only claim one home as your main residence at one time (except for a 6 month overlap period).

Terryw
Discover Home…[Read more]

Originally posted by redspida:
Transferring the property now will incur stamp duty. It may be a way for them to get the pension, but at $420 per fortnight is it worth the hassle and expense – Capital Gains Tax as well.

Hi Terryw,
is stamp duty payable even for transfers to family members without any money involved, just change of name on the…[Read more]

Most low doc loans require the applicant to be self employed for a period of 2 years or more. Evidence of this is the registration of an ABN. So the sooner you get one hte better!

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 am not an accountant, and haven’t looked that the ATO site mentioned above, but I have understood the 6 year exemption is lost totally if you are away from the property for more than 6 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.

Maybe take the tenant to the residential tenancy tribunal and get a judgment against him for the repairs and cleaning. You can then chase him for the money -using a debt collector if necessary.

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.

They have been around for many years – which is not too common in the property industry, so they must not be too bad. But you can probably go it alone and save some money.

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.

http://www.truststructuresguide.com.au/

is another book – lists 13 different types of trusts.

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.