You would need an annual income of around $1,000,000 to service a loan of this size.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Hi guys

I think the problem with the mojibake/funny characters on the site is probably due to the encoding. If you try to change your settings in the view menu, then encoding to Japanese, it may work. Most of the articles are actually in English, but are from people with a Japanese OS.

Terryw
Discover Home Loans
North…[Read more]

Chinapower. Nihao.

I think that is only possible for properties purchased before a certain time. Those purchased later cannot opt for the indexing method.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Yep. date of contracts is what the ATO goes on.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Hi Bruce

You say that a trust give no added protection. But what if someone is pursued by ASIC for corporations offences and is basically sued? Having their personal assets owned by a trust would surely add extra protection in this case.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Just think of it this way, the wrapper has pruchased the proeprty, it the eyes of the ATO, this is a sale as contracts have been exchanged. Therefore I would assume they could claim everyhting that a ‘normal’ owner could claim the wrappee could claim.

But I an not an accountant so this may be wrong.

Terryw
Discover Home Loans
North…[Read more]

This is a problem that pops up every now and then.

It can be overcome, possibly, by showing the statements proving you transferred the money into your brother’s account and then him transferring it back.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I think legally they would still be the same person so there shouldn’t be any problem.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Tom

If you loan the money, then it is an asset to you. you still own it. I think you have to weigh up the tax benefits of lending vs the asset protection benefits of gifting.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

If the trustee was the husband, renting the house to the wife would put a bit more distance between the two. Renting your house to your brother etc would be even better. He could always let you stay there with him.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Hi Ken

Not only that you will be paying more tax on the postive rents, the large mortgage on the new proeprty won’t be deductible.

Maybe you could sell you property to your spouse and free up money to put into your new loan. This would also increase your tax deductions dramatically. Weigh this up against the costs of stamp duty to do it, and…[Read more]

Hi Crashy

Some lenders charge you for their legal fees. These are usually the smaller non bank lenders. This is because they outsource. The larger banks usually have their own legal departments, and include it all in one application fee. Sounds like you paid about $464 in legals and the rest was govt charges which you just cannot…[Read more]

The trust would get all the rent either directly or from the proeprty manager. You would claim the deduction of interest against all of your personal income, and the trust would make distributions of the profit to you. The trust should be making a profit as the major expense, interest, is being paid by you personally.

If you pay yourself a wage,…[Read more]

Why Redwing?

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Found the book i was referring to:

Sham : How the Self-Help Movement Made America Helpless
by Steve Salerno
# Hardcover: 288 pages
# Publisher: Crown (June 21, 2005)
# ISBN: 1400054095

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I’ve done a quick search on amazon.com and am unable to identify that book I mentioned. Would anyone else know the correct title?

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Yes, I beleive that, generally, you cannot claim the trip if you are only looking at purchasing. It would be a capital expense, and could be claimed, possibly, against any capital gain on the sale.

However, if you have a few proeprties already and are in the business of property investing, then there may be possibilities.

If you had existing…[Read more]

A few weeks ago I was looking for a book to read while stuck at Melbourne airport, and I came across an AMerican one on the gurus. I think it was called something like ‘guru busters’. There was a whole chapter on Anthony RObbins in there. I ended up buying a different book, so didn’t read it, but it was critical of the whole industry and may be…[Read more]

Watchout for the taxman. Have you considered putting some distance between yourselves and the trust by having someone else rent the property from the trust (and you live in it)?

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

There was a case last year where someone in VIC was ivestigated and found not to have lived in the property for which he claimed the FHOG. He appealed against the decision and lost. He was ordered to repay the FHOG, but nothing was mentioned about the stamp duty discounts.

I think I made a post about this on this site somewhere.

Terryw
Discover…[Read more]