You can also get low docs for NZ property. So I would say your chances are good.

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

1) Yes
2) yes, have to pay CGT even if you reinvest.

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

If you friend want to pay more interest send him my way. I can fix him up on a 10% pa interest rate. He will be able to claim a fortune!

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

My understanding is that tax losses cannot actually flow through a trust. Not even a hybrid can distribute losses. The only way around this is for the interest to be claimed personally as the above describes.

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

I think most aggregators need at least 2 years experience before they will take people on. Maybe Lawfund will be ok??

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

Section 118-145 of the ITAA (1997) says you can claim your main property as your main residence even if it is rented, for a maximum of 6 years.

There is another section of the act which states you can actually have 2 main residences for a period of 6 months to allow for cross over periods.

So you should be able to buy, then sell without CGT if…[Read more]

It would be possible to onsell. Whether you should do this or not would be up to you. You still would not get the ‘profit’ until the property settles though.

BTW, you may be able to sell now and still claim the 50% CGT discount. The ATO class a sale to occur on exchange of contracts – which you probably did in 2003.

Terryw
Discover Home…[Read more]

I think there is a free booklet concerning this on the following accountant website:
http://www.bantacs.com.au

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

Yes you can enter into an option to purchase contract. Find someone else willing to buy and then assign the option to them for a fee. Can save lots of stamp duty by using options.

Have a look in the API magazine. There is a QLD solicitor called Rob Balanda who is selling some books or CDs concerning options.

Terryw
Discover Home Loans
North…[Read more]

There are low doc loans with higher LVRs – up to 95%. But the interest rates can be high – very high on some. So it is not the ideal loan to get.

Rates can be fixed on most low doc loans. The fixed rates can also be rather high on these.

Are you sure you cannot obtain a ‘normal’ loan? When factoring in rent from the new purchase, you may…[Read more]

If someone had a large enough property base, then if they were only to use a portion of the growth (after it happens), as Jeff has shown, then I cannot see how this could not be viable.

In reality, most people at this level would have a few sources of income (which would also be growing), and would only be drawing equity to supplement their…[Read more]

Lynn

That may not necessarily be true. A minor can actually enter into a legally enforceable contract in a number of instances. One is when they stand to benefit from the contract. This could be the case with the purchase of property.

Another example: There are many young people employed in fast food restaurants and they are covered by…[Read more]

Do a search here as there have been a few lenghty posts already.

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

What about starting out in shares?

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

BTW, there was an article about getting out of contracts in a recent API magazine.

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

It may be enough for your friend to cancel the contract or sale – if that is what he wants. It would depend on the wording of the contract. Really this is an off the plan type purchase (it is a subdivision) so the vendor would likely have covered for delays in the contract.

You friend may have to seek the advice of a better…[Read more]

Originally posted by Marisa:
Hi Terry, do you now use Steve’s strategy, or will you be in the future?

IT would be great to hear from people who are actually using Steve’s strategy for some time.

Regards, M

I haven’t used this strategy exclusively, but have used ‘bits’. I wish I had focused more on Navra’s ideas as I would be better off…[Read more]

Originally posted by ssab:
You have said that you wont make much money on a outback property so why are bothering.

That’s it in a nutshell!

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

You don’t have to go overseas or to outback towns. Last year 2 of my clients purchased positive geared properties in Sydney – without wrapping or lease optioning.

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

Section 118-145 of the ITAA (1997) – you can rent your PPOR out for up to 6 years and still class it as your PPOR. But you can only claim one property as your main residence at one time (except for 6 months overlap).

Check with an accountant.

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