Greg

yes very good point. You must get a good trust deed or they can be worthless.

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

Yes. but get legal advice. Each state differs in their rules. In some states the entity must be set up before you sign the contract, or you must pay stamp duty twice – this is the case in QLD I think.

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

Anna, Good idea, but if ratherbfishin has been declined for credit, he may not be able to get this appoved.

Under the UCCC (Uniform Consumer Credit Code – for your PPOR), you can approach your lender and tell them you have a temporary problem due to your employer not paying etc. They may be able to give you breathing space by increasing your…[Read more]

Tell her to be careful and to watch out for high interest rates and high charges. Most brokers would be able to set up something similar for free with possibly a lower interest rate. This sounds like it is a line of credit type loan, and the rates for these start at around 6.72% (thats after the 0.25% rise), depending on loan…[Read more]

John

Nope, unless the loan was in your personal name, I don’t think you can. The trust is a separate entity and losses can’t be transferred.

But talk to your accountant who may have some ideas. Its not such a large loss, so don’t worry too much.

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

You should probably look a getting one property in your name, see how you go and then if you intend to keep going, set up a trust at that stage.

Trusts are cheap to setup. from $137!

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

Hard to finance and hard to sell, with no capital growth over a long period (generally). Unilodge?

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

Just be careful, these are usually hard to finance and hard to sell and can have management problems.

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

Hi Renee

80% of your property price is $252,000. It may have gone up since Dec, but probably not much.

That means you have about $12,000 equity which you can use without going through mortgage insurance. So if you were able to use your property as additional security, then your boy friend could buy a property up to about $60,000 – if he had…[Read more]

Trusts cannot distribute losses. Even Hybrids can’t do this. Also none of the above expenses would be claimable against your own income. The trust would be able to claim them against its income. I don’t know about travelling costs though.

With a hyrbid, only the interest expenses would possibly be claimable against your peronal…[Read more]

Ed Burton does seem to charge a lot for his trusts.

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

I have done two refinances. The first went through ok, with the lender and mortgage insurer treating it as a normal refinance. A few months later I tried again, with the same lender, but the mortgage insurer (PMI) had changed their opinion on wraps and would not treat it as a refinance. They would only lend based on contract – depsite around 2…[Read more]

I imagine it will be very hard for a temp visa holder to get finance especially for a construction project with a major lender – (but I am only guessing a I haven’t looked into this).

There are small funders that will fund on end value, gross realisation lending. The LVRs are usally around 65% with interest rates of around 12%pa. These lenders…[Read more]

A lot of people interstate even use Dale Gatherum Goss who is located in Melbourne. It is best to use someone who specialises in Hybrids as some accountants are not worth their money.

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

Ed Burton is offering a free DVD and CD etc on trusts at the moment. One of my clients has given me a copy, not sure where you can get them, but it would be worthwhile looking at even if you do not use his services.

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

$200 per year should do it, plus maybe extra per property, CGT etc. If you have a company, then annual ASIC fees etc about $350 extra. A Hybrid may be a bit more complicated, and hence cost more.

Good luck with it.

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

Off the top of my head, have you tried Latrobe? They probably couldn’t go that high though.

Can you let me know who could do 70% – it might come in handy?

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

I have used Goldmine (not sure of the version) and don’t really like it much. There are various filed you can add etc, but don’t know if it could do financial type reports.

We are now using a web based software called Symmetry which can be integrated with MS Outlook and can handle financial details of clients and borrowing capacities…[Read more]

Hi

I am no lawyer either,

I think from the bank’s point of view, the money has been lend to buy the property, not the units. So there is no mortgage or security over the units.

If the unit holder goes bankrupt, and if the units are seized by creditors, then the trustee would still have the discretion on where to distribute the income. If the…[Read more]

Hi Zen

I’m not sure I understand what you are saying.

With a hybrid trust, you borrow money to buy units in the trust. Since you are borrowing the interest will be able to be offset against your own income.

With a discretionary trust, the interest will be claimable by the trust only. The trust, or trustee, is borrowing to buy the property. If…[Read more]