Up to 90% with LMI from Australia. Not sure about over there.

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

Usually Trust deeds are worded so the trustee is automatically a beneficiary, and any company to which a beneificary holds shares or directship etc is also automatically a beneficary.

Becareful with signing. Some states may allow a trust to be established after signing, but others (eg. QLD?) don’t. SO get professional advice.

Terryw
Discover…[Read more]

In NSW, I beleive it must be paid at settlment or within 3 months of exchange of contracts.

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

It will be very hard to borrow 100% finance for an investment property. Even harder if the property is located in outside a city area.

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

Originally posted by zen1:

If an IP is purchase by a trustee under his name not trust name what stops the trustee from selling the IP outside the trust?

Nothing I guess except the law!

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

alwayscurious

Another pro: You could rent the house to yourself furnished and then claim decpreciation on your big screen TV etc.

Another Con is Land tax, and you would have to pay your trust market rent, so over time it would become cashflow positive.

It may be a good idea if you only intend to live there for a while, but if you intend the…[Read more]

In 6 years it could be worth $300,000. You have to ask yourself, is getting a $100 pw extra (or whatever) worth giving up $150,000 +/- in caputal gains.

Of course, it may not go up at all, or it may even be worth much more.

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

Calvin

Yes you are there!

In actual fact, the bank will not lend you money to buy units in the trust. They will only lend to buy property. They will, but they probably don’t realise they will!

The banks just give you a loan, secured by the property. You then simualtaneously buy units, and the trust buys the property. The bank is not actually…[Read more]

Redhaven

Unfortunately with farms, I beleive that they are not totally CGT free, even if your main residence. You main residence and the surrounding 5 acres is all you can claim the exemption for. There are various concessions etc for farms which are very confusing, so I suggest you talk to a CGT specialist accountant about this. It may cost you…[Read more]

Hi Zen

I think with hybrids, some of the income must be distributed to the unit holder. If not, then there is no relationship to the interest being claimed. ie for interest to be claimed, the funds must have been used for income producing purposes. I don’t use hybrids myself, so am not actually sure.

If you own a property as trustee, then this…[Read more]

banks will want to see evidence of all income from your trusts and/or companies – unless you are using low doc loans.

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

Calvin

You post has confused me a bit!

let me try to explain.

When the trust buys a property, the name on the title is the trustee’s name. If you are the trustee, it is your name. If a company is trustee, it is the company. Its the same whether a hybrid or discretionary trust etc.

With a Hybrid, you then apply to the bank for a loan, but you…[Read more]

Terry

I dodn’t think so. I never paid it on mine, and remember my contracts had a clause that if it ever was applicable the wrappee had to wear it.

Should apply on cashout either as the property won’t be new.

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

Apparently the ATO doens’t consider ‘boarders’ paying money to be income. (According to the 2004 Taxpayers guide, and a friend who rang the ATO). You culd possibly declare the income and then claim other expenses such as interest etc, but then you would have CGT problems.

I have had exchange students in my place in Sydney, and charge them $250…[Read more]

Might be a good move.

She will possibly be able to save a little bit of tax by negative gearing (inc claiming depreciation etc). She could do this for up to 6 years and still claim it as her main residence for tax purposes (no CGT if she sells).

She will also get more centrelink payments (rental assistance?).

Terryw
Discover Home Loans
Mortgage…[Read more]

Have a look at http://www.chrisbatten.com.au
If may be hard to do.

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

It seems that some govt departments can have internal guidelines which the public are not aware of. I don’t know how you can get around these. You had better talk to your solicitor.

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

Are you sure you are doing the right thing? Selling a property will cost you as you know. This is money down the drain. then when you buy again, there is more stamp duty etc to pay.

I am concerned that a number of people are reading Steve’s books and then thinking they have done ‘it’ incorrectly. They sell their property in good locations and…[Read more]

From a taxation view point, it would be better to put any cash you get off your PPOR and then redraw it for investments, rather than just paying it straight into the investments. You want to reduce non deductible debt asap.

But if the PPOR is not going to be your PPOR (or are you intending on mvoing back?) you should then put it off the new one’s…[Read more]

Intro rates are often followed by high deferred establishment fees in the first 5 years or so.

The answer would depend on how long you intend to stay with the lender. And just remember, things change so you may want to move sooner than expected.

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