Rather than a company, look at discretionary trusts instead.

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

They are out there, you just have to look.

Just this week I heard of someone who just purchased and is getting a 19% yield (in outer Sydney).

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

There are loans out there which do not require genuine savings. These are usually 90% LVR, but I think there are a few at 95%.

Keep in mind that it doesn’t have ot be cash savings, it could be shares, or managed funds etc too.

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

Originally posted by Cata:
He broke his back doing a seminar in sydney.
The info is still flowing as per normal.

Cata, how did break his back? Is he alright now?

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

From an interest calculation angle, and offset and a LOC will be exactly the same.

But from other angles they will be different.

eg. by using an IO loan with an offset (as suggested by Steven) you would not be paying down the loan, but would be saving interest as if you were paying the loan down by the amount deposite into the offset. This may…[Read more]

Hi Jen

These should keep your busy:

Freehills Lawyers
http://www.freehills.com.au/tax_2772.asp

Moores Legal
http://www.mooreslegal.com.au/expertise_notforprofit.htm

Brett Davies Lawyers
http://www.taxlawyers.com.au/manuals/Charity.htm

Philanthropy Australia
http://www.philanthropy.org.au/advocacy/draft.htm

Charitable Fundraising in…[Read more]

You settle on the property or lose your deposit and risk being sued.

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

Allan

I think you should probably fight for your fair share of things, but that will come later.

My parents were divorced when I was young. My dad married another divorcese with 3 children,set up a new home etc, and then he was killed in a accident (nearly 20 years ago). Before he died they talked about this topic and it was decided that if…[Read more]

Ben

You could move out and rent, but you could also stay put and buy another property. If you rented your home and it was positive geared, you may have to pay more tax, but this could be offset if you are renting cheaply eslewhere.

Also, under section 118-145 of the ITAA you may be able to rent out your home and to claim an exemption from CGT…[Read more]

The other day I was pondering living off equity and had a thought. What would happen if one was to continue to increase the loan on an investment property year after year and then died. The person’s estate would have to pay CGT on the property, but with the loan up high, there could be a shortfall after paying CGT and the loan back. ie you could…[Read more]

Cata

Here is a quote from a well known accountant on another forum, dated July 2003:

“I would be very interested to see any stautory law or cases that require a cheque be deposited in the trust account within 28 days on behalf of the settlor.
The problem with depositing money in a bank account is that if the balance falls below $10 then there is…[Read more]

Cata

I will try to find out more. I suppose you could become unstuck here is it turned out the $10 note was manufactured well after the trust deed stamped (eg from serial number).

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

There is also the ‘Bare Trust’ method.

This involves sitting around with no clothes on and signing contracts.

Oh no, it doesn’t, my mistake.

It is when a trust is formed between two people – the trustee and the beneficiary. The contract is signed in the trustee’s name, and then after settlement title is transfered to the beneficiary’s name. The…[Read more]

It looks like you maybe locked in, but you may be able to get out if the seller agrees. You had better contact your solicitor.

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

It could be done if you had about $6,400,000 in useable equity in other property.

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

Cata

Whats the difference? I use the two terms interchangeably.

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

If included you could claim them as a tax deductions, whereas tenants couldn’t if paid themselves. Therefore if your paying $100 it may only cost you $80 after tax.

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

Cata

I’ve been advised never to use a cheque for the settled sum. I think it had something to do with causing problems if the account was ever closed. Have you heard of that? I staple $10 notes to my trust deeds.

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

I enquired with ANZ before about this and they stated could only do 95% to bring the loan upto the original level – can not borrow more. (I have had conflicting advice from them more than once however).

I’ve also heard Royal Guardian can do refinance up to 95%, tho not used them. And also the new First Mac products may also allow…[Read more]

Originally posted by pasandbec:
Originally posted by Terryw:
80% of your IP value is $224,000. That means you can borrow an additional $39,000 securred against this property.

To avoid cross collateralising the two loans, you could take an extra loan with your existing lender separate (ie split) to the current loan. Then you could go to another…[Read more]