There are some great resources out there.
check out
http://www.lawcentral.com.au
http://www.chrisbatten.com.au
for starters.

Then there are the books, Dale gatherum goss’ is “trust magic”, very easy to read and understand. There are a few new ones on the market too.

Terryw
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Bankwest will lend up to 90% on rural land.

Terryw
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Thank you Steve. I am in Bangkok at the moment, but will email you when i get back.

Terryw
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My understanding of trusts and asset protection is this (I am not a solicitor or accountant).

Assets owned via a trust are not owned by the trustees or beneficiaries. So if a trustee is sued personally, their assets in the trust are relatively safe. If they get a judgment against them, their personal assets can be seized by creditors, but the…[Read more]

Construction loans are readily available these days, and a duplex shouldn’t be a problem – even with a no doc/ low doc.

Depending on the value of the land, you could also just borrow against this.

Terryw
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Many people use trusts. There are plenty of reasons, positive being:
– Asset protection
– Estate Planning
– Tax savings

I cannot think of many disadvantages, but one is property in a trust does not get any land tax threshold (so you may pay a bit more land tax).

Terryw
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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.

Also with trusts, Centrelink, will still deem them to own the land if they are involved in a trust or company that owns the land.

One thing they should do is…[Read more]

Even if you offer to put them up in a the best hotel in town for a few weeks, it may be worth it. Or buy them a car! (wonder if you could claim this)

Terryw
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I think you will have a hard time finding a business type loan. You can get a investment loan based on the security (rather than the buisness idea), but you will need to prove serviceability – which will be hard if not working.

Probably you will have to settle on some sort of No Doc loan, with a deposit of 20-30% needed.

Get an ABN now if you do…[Read more]

A lot of these types of investments go bust with investors losing all of their money. Just have a look at the asic website, http://www.asic.gov.au

Terryw
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None will lend 100%. One or two lend up to 95%, but the rates are high, around 9%+.

Terryw
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Don’t worry Mal. They will fix it up and it will look better than before – so you can put up the rent!

Terryw
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LOCs generally have higher interest rates. Costs are also generally a bit higher, or same as normal loans.

If you have lousy cshflow, then maybe a No Doc loan is for you. It is possible to get a LOC with a No Doc or a standard loan – sometimes these canbe used like LOCs if they have free unlimited redraw (eg. Macquarie Mortgages)

Terryw
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Thanks Derek, but I was thinking more like reserving a certain % of profit to be shared by all staff.

Finally finished reading that book about the flight centre, and one of the ideas they have is “what gets rewarded gets done”, which makes sense.

So you might be giving away some profit, but the extra results will more than make up for…[Read more]

Hi Carl

I am not an accountant, but have approached various acountants about similar questions over the years. Some say you can capitalise interest and claim this – this is standard practice in many businesses. However thers say it cannot be done.

One idea is to get a Investment Property IO loan with bank A. You own home loan is with Bank B, and…[Read more]

I suppose it depends on how much and how fast you withdraw the equity. If your portfolio is growing at $100,000 per year, and you only take $80,000 you should be right. But have to plan for years with no growth too.

Do a search on Steve Navra for his ideas on this topic.

One potential problem is if you are withdrawing from an investment to fund…[Read more]

Yes, you are heading in the right direction. Possibly start off with a trust, and as you progress you can add more layers.

Just read everything you can get your hands on concerning this topic.

Terryw
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Hi

Have you considered trying to market to investors who will rent the property out, or sandwich lease it?

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RAMS will do up to 80% on No Docs, and Maquarie up to 70%. Macquarie have reduced their rates as well for loans over $200K – now 6.98% with No LMI payable.

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Hi Grevs

If you have been self employed for less than 1 year of business, you will find it difficult to get a standard loan. Most lenders will want to see 2 years financials.

There are other options such as No Doc, but these are limited to 80% of the value of the property. So you would have to come up wtih 20% deposit and costs.

You could…[Read more]