Cruiser, with a hybrid trust, you would be the unit holder and you would borrow the money so could claim the interest against you own personal income. The trust would then make a nice profit as it no longer has to pay the major expense of interest. This profit can be offset against building and fitting depreciation. The remander of the profit…[Read more]

I supppose if they have a valid lease and you want to break that lease, you would have to pay penalites. Otherwise, I would suspect you could just give them the required notice to vacate the property.

Terryw
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I think there have been a few posts about this before.

8% yield is not very impressive. Some things to think of:
– possible low capital growth
– hard to finance
– high management fees?
– hard to sell
– hard to add value
etc

Compare this to buying $50,000 worth of share for example.

Terryw
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Hello Sheva

It is generally not a good idea to buy a property in a company as you will loes the 50% CGT discount. a trust is a great idea though. Maybe a unit and discretionary trust in this situation.

Terryw
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Probably a good structure would be a unit trust, with each partner holding equal units. The trust should possibly have a company as trustee with all three directors (or one to reduce risk, if others will agree to this).

Because personal assets can be at risk if you get into problems, each person should set up a discretionary trust to hold their…[Read more]

False.

get get away with 10%. Just ask “PropertyGuru”, a NZ investor and Aussie mortgage broker on this forum.

Terryw
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You will need to talk to your solicitor about this, mortgage documents will have to be drawn up. You need to decide on the term, the method of their loan (IO, PO, PI or a balloon payment etc), and the interest rate.

I have spoken to a few lenders about this, and they have expressed that they have no problems with it, but I have never see it done…[Read more]

Generally you should probably buy one property in your own name and then use a trust. You’re own home will be exempt from CGT, but a property purcahsed through a trust won’t be.

Do a search and you will find heaps of info.

Terryw
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This sort of thing happens all the time. Lenders are very slow when you you want to discharge. They seemt o try and drag things out as long as possible.

Terryw
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If you have a good income, stable employment, you could get a non secured LOC. But the interest rate would be high – maybe 17% and the amounts generally less than $30,000.

Terryw
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Don’t worry about postcodes too much. You can get 95% loans down there on the westcoast for amounts up to $150,000.

Only one mortgage insurer will approve loans down there, and they will generally only approve a few loans per client to reduce their risk.

Even without LMI, you will be able to get 80% loans.

Terryw
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Mortgage…[Read more]

You just need to talk your solicitor. You will need a loan agreement and should take about a second mortgage.

Work out the terms you want to give. eg. how long will the buyer pay you back, what interest rate. Will the loan be interest only, PI or no payment until the date he pays you out etc.

Terryw
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Cruiser

Yes, discretionary trusts cannot distribute losses. Sounds like you should have used a Hybrid Discretionary Trust.

For full doc loans, I can’t think of a lender that will not lend to trusts.

Terryw
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Crusier

probably half of my clients use trusts, and I rarely encounter any problems with lenders.

And trusts can claim depreciation, just like an individual. The only difference is losses cannot be distributed.

Terryw
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Originally posted by foundation:
Originally posted by Qlds007:
You sign the contract in your name and receive a letter dated prior to the actual contract date with permission from the eventual owner appointing you to sign on their behalf.

Would this not constitute fraudulent evasion of duty?[worried]

Foundation

It would depend when the letter…[Read more]

Landt

Its the same as signing in your own name, except that you can nomination someone/entity before settlement if you want to.

Terryw
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Things to consider:
– look at using a discretionary trust, so income can be attributed to your wife, if and when you require
-Is your wife working? If not how will she get finance? In some situations spouses can go on the loan without being on the title.
-Land tax is progressive. So the more you own, the more % you will have to pay.
– If you get a…[Read more]

What state are you in?

You could also get the vendor to cancell their contract with you and issue a new one to the new purchaser with you collecting a fee from them. But this may be illegal, and the vendor would not do it for free.

Terryw
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If your living at home, and wish to buy a rental property firstly, you will be able to include potential rent as well – boosting how much you can borrow.

Terryw
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Yes it is theoretically possible here, but nobody is going to lend your on a second mortgage over 80% LVR – except maybe a desparate vendor.

BTW, commercial second mortgages up to 80-85% maybe possible with rates from 12-26%.

Terryw
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