Rob

I have never known anyone to be audited. What was the experience like?

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

By ‘retired’ I don’t mean living on a pension.

Having a large property portfolio would mean one would be a professional investor. There are various loans that would suit an investor. Including the many No Doc loans. A person self employed for one day could also qualify.

Hopefully the overall LVR would not be that high, so getting loans should…[Read more]

I am a fan of living off equity. I am not doing it, and haven’t done it, but it sounds good in theory.

They way I would suggest you look at is to build up a large portfolio of property while working, then after a few years you could ‘retire’ by living off a percentage of your capital growth.

Terryw
Discover Home Loans
North…[Read more]

Originally posted by Stuart Wemyss:
Yes, you could have a loan in the trusts name and a security in your personal name.

However, it wouldn’t make much sense from a tax perspective. Run this past your accountant.

Cheers

Stu

Stu

What about if a person had a unencumbered property. He then started up a trust and got a loan secured against this…[Read more]

Yes. I trust can run a business. However, asset protection will depend on who is being sued. eg. if the trust is running the business and the business is sued, then having a trust won’t protect other assets in that trust.

But if you are personally sued, then your trust assets may be safe.

A trust can also help minimise tax with property…[Read more]

You could possibly claim the seminar (or part of it) if it was related to your current earning capacity.

see also this post:
https://www.propertyinvesting.com/forum/topic/17506.html

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

Yes Kay, that’s a fair point!

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

Another spin to the idea.

What would happen if the investment property were to be owned by a trust? How would things differ?

I would imagine it would make things easier to justify to a certain extent. The trust is a different entity to the person.

So if there were expenses such as rates, insurance and interest, then the trust would be able to…[Read more]

Yes. I would be doing this for reasons other than to save tax. I am just not sure on what these reasons are at the moment! Probably cashflow reasons.

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

Thankas again Coastymike for your kind words.

Collie you shoulod probably get a copy of the book “Trust Magic” if you haven’t already. Heaps of good info about trusts, including a bit on Hybrid’s. and it is written in a very easy to udnerstand way.

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

Imagine being ripped off for $36,000 and then consoling yourself saying, well at least I will get $18,000 back on tax. And then this!

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

I agree that this is not wrapping.

It seems that the organisers were real estate agents and were inflating property prices and selling properties to unsuspecting victims. They gave misinformation to the bank and used the bank’s policies on valuations to obtain loans greater than the property value.

Terryw
Discover Home Loans
North…[Read more]

Bob

Yes that could be correct. If you rent out your home you could still claim it as your main home for up to 6 years – as long as you are only claiming one main home.

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

Clay

He “live in Bathurst and work in sydney”

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

If it is your PPOR, then there should be no CGT issues – unless the place is rented out at some stage, or used to produce income.

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

It depends on which state you are in. In Victoria I beleive it is payable at settlement. In NSW it is within 3 months of signing a contract (expect maybe for land?? I purchased land off the plan and did not pay it until settlement).

If you chose not to pay it, interest will accrue at around 13%pa. So it won’t cost you too much to delay…[Read more]

Many lenders will be able to finance up to 4 units on one title as residential. I was just talking to Heritage Building society about his on Friday and I think they will do up to 6 on one title.

You probably would be able to get over 80% LVR though.

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

Good points there Mike.

Yes it is possible to do it all yourself, but it may work out better by going to an accountant – especially for your first one. However, those sites have some very good information, and even if you do not intend to use them, you should register and read their material on tursts.

On going costs would depend on what sort of…[Read more]

Thank you for that Julia. So in summary, I think Julia is saying it could work to a certain extent as long as it was not a scheme and as long as the dominant purpose was not to increase tax deductions. But maybe Julia was referring here to capitalising interest only.

Would paying interest with an LOC (ie borrowing) be classed as capitalising…[Read more]

In that case, if you use a trust, all income will be able to be distributed to various beneficiaries each year at the trustee’s discretion. The class of beneficiaries is usually very wide and would include most of your relatives (even those yet to be born).

So if the trust has income, then there is no need to employ people.

A trust could employ…[Read more]