The trouble with using a company is that you lose the 50% CGT reduction and you can only distribute profits to shareholders in accordance with their percentage ownership. The shares could be owned by a trust thought, but you would still lose the discount of CGT.

So you had better look into trusts. At least do some preliminary…[Read more]

try http://www.banctacs.com.au

Terryw
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No reason for the properties to be cross collateralised.

Terryw
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You can see a sample loan agreement on
http://www.lawcentral.com.au

Terryw
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RAMS also have another mortgage insurer, in addition to PMI and Genworth, the 3rd one being Prime.

Terryw
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It can also depend on your personality. Some people like to take PI on investments as they feel secure knowing the debt is decreasing. But for me, I would take IO, as then you have the option of paying a bit extra off the principle if or when you can afford it. Look for a IO loan with a 100% offset account.

Terryw
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I think it would work like this:

Capital gain = $1000. This is distributed, if to an individual, then the person will get the 50% reduction in CGT, and this will become $500.

The remaining $1000 will be an asset of the trust, but it still has the $1000 loan, so it could pay this back, or keep the money, and pay the loan back later.

For a unit…[Read more]

Cata, the link no longer works. I’ve searched the site with no luck, what was it about?

Terryw
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I have Dale’s book, which is very easy to read and understand.

Terryw
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They are the same.

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Homeside used to go up high without LMI – 85% to 90% i have heard.

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A lot of the ANZ managers do their own valutions for ppty in country towns. He probably used the letter from the agent to help him ‘determine’ what the value was.

Terryw
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There are still $50,000 propoerties out there, so it is more than enough to get started.

Terryw
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Yes, it will be hard for you to get finance initially. You will need a deposit, probably at least 15% plus closing costs, and the rates will be very high – discharge costs will also be high.

Possibly a better option would be to look at vendor finance – ie someone wrapping a property to you. This will get you started, back on your feet, and then a…[Read more]

Hi Mulder

I am based in Sydney, as is my company, but am currently living in Thaialnd for 3 months. However, if you need finance, someone from my office should be able to assist – or feel free to email me (it may take me a while to reply)

Terryw
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Setting up a trust wil not cost you much. running costs are virtually nothing, but you have extra land tax to pay. So worst case scenario, if you set up a trust and buy just one property – it may not cost you much more, but when you sell this proeprty, it could save you thousands of dollars in tax. Not to mention the asset protection side of…[Read more]

If you ever lived in that unit, you pay be able to claim it as your main residence and, hence, sell it CGT free. Section 118-145 of the ITAA (I think).

If not, it may still be worth selling. You have to add up all the costs – agents fees, CGT etc. and then you will eventually be replacing the investment with another prperty so you should included…[Read more]

Most often the small defaults – under $500 can be disregarded by the lenders. They may want to know what happened, and a divorce is a common reason for this to happen.

Terryw
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He is probably locked in.

The fact that the proeprty was pass in at the auction is irrelevant. He then negotiated with the vendor and signed a contract (did he actually sign?). If finance was not listed as a condition, then no luck there either – it is not part of the contract.

Maybe he could talk to the vendor who may let him out. If not, he…[Read more]

Only when it is growing at a rate faster than the loss.

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