If you are planning on buying a few properties, then it might be worthwhile setting up a trust to start. Any accountant could set one up, but there are many out there who do not have a clue. Try http://www.gatherumgoss.com for a good accountant who also has a book on trusts for sale.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Excellent idea Derek!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Stamp duty would be marginally higher, but CGT wouldn’t be any different if done correctly.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I use a LOC on my PPOR. But I do not deposit incomes etc in there. I use it merely for investment expenses and deposits.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Many investors use trusts, but there are some out there with a fair few properties who only use their personal names. It seems some accountants do not understand trusts at all.

I would keep on doing research on trusts – it takes a long time before the ‘penny drops’.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Yes, I was suggesting 20% above what you pay for it. But you can vary this as you please. Some people believe you should not be making a profit when onselling a property. But you have to account for costs such as stamp duty and make a profit or it would be pointless.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Sounds good in theory. I have examined the ‘throery’ of writing covered calls, but in practice I have heard that it is hard to make that much money as expected.

Just make sure you get a loan agreement drawn up. This will help you claim the interest and also clearly outline the terms of the borrowings from your dad.

Terryw
Discover Home…[Read more]

Maybe get a professional in. That way if something happens, their insurance should cover it,.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

OK Richard. They seem so close from here!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

No.

What is someone sues you for farting in an elevator, and you go bankrupt. Your trust assets will probably be safe.

If you decide to stop paying the trust loan, then the bank will come after it, and then the guarrantor if there is not enough. This is expected, and fair.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I am sure they will change, but you can’t sit about worry about things that haven’t happened. Trusts are still an excellent way to hold assets and will probably continue to be.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Hybrid trusts are a mixture of discretionary and unit trusts. They work well because the unit holder can borrow to buy the units in the trust and claim the interest against their own personal income. This effectively allows negative gearing using a trust. This is not normally possible as trusts cannot distribute losses.

Terryw
Discover Home…[Read more]

In that case, put it in an offset account against your exsting loan. Keep saving to add to the deposit on your next one. Maybe you can increase the existing loan to access equity to get the deposit faster.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Asset protection is due to you not owning the asset. You are holding it on behalf of the beneficiaries. If you were to be sued, the trust assets would (probably) be safe. So even if you went bankrrupt, you may not lose these assets.

Tax advantages are due tot he fact that the trustee can choose who to pay the income to each year. eg. one year a…[Read more]

They probably would be interested. But what does that mean?? You still have to apply for finance, and everybody’s circumstances are different, so they may still not be able to lend on that property. At least it may give you an idea on where to start.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Steven

Thats the First Mac one. I think notabrokeranymore may have been referring to another 95% low doc?????

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

look at this site
http://www.bantacs.com.au

They are up around there somewhere!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Probably not. Mainly for taxation reasons.

See you accountant about this. But basically you should buy you house, and then use this as security to borrow more money to buy the investment.

If you do it the other way, you will be paying interest on your home loan which you can’t deduct.

Terryw
Discover Home Loans
Mortgage Broker
North…[Read more]

Good work.

Councils are no longer allowed to take a moral stand and discriminate against brothels!

Do you own a pink cadelac?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Depends on your situation.

I would put it into my home loan, if I had one. Or a 100% offset account. dpending on what sort of properties you are after, it is probably not enough for a deposit.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au