You could simply set up another account. But I think there is a way around it, by getting different deposit books that are coded. So each will appear differently on your statements. Let the bank know your problem and see if they can help.

Terryw
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Its not illegal if the broker asks the client and gets the client to ring the wrapper.

Terryw
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Originally posted by The Mortgage Adviser:
Can someone explain hybrid trusts please. I would prefer not to go look it up as I have heaps to do!

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Like writing endless posts[biggrin]

A unit trust will not effect distributions. The unit holder would be the discretionary trust, so all profits could be moved around at the…[Read more]

I used them in the past, with good results!

Terryw
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If you move out and rent your PPOR, the interest would be claimable, but if you increased the loan, the extra interest on this portion would only be claimable if the money was borrowed for business/investment purposes.

Terryw
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you can setup a trust online in 5 mins for $137! But you had better understand them before you do that.

You can have an unlimited number of assets in a trust, but for protection reasons, you would be better setting up new ones every now and again. Usually the trustee is a company, and you control the company – in case the trustee is sued. But a…[Read more]

Looks good, but why not a unit trust with the units held by the discretionary (or hybrid discretionary). This many come in handy in transfering property to your SMSF in future without stampduty.

Terryw
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Maybe you should look at a unit trust and/or partnership of discretionary trusts. You would need a partnership agreement either way, http://www.lawcentral.com.au for an example.

Terryw
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Switched on investors mainly use trusts to hold their assets. Very common.

Banks can and do lend money to ‘trusts’. It is really no different to individuals, same rates, same LVRs etc.

Terryw
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Its not that old, 3 years! And I beleive that other wrapper had his loans called in approx 12 months ago.

Brokers can even lose their accreditations with certain banks for doing non disclosed loans.

Terryw
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A lease option is really just renting with an option. So it would not be classed as a refinance. They won’t even class a wrap as a refinance. But lenders will treat these favourably, and you may be able to get the loan based on value rather than contract price (which could be much lower), generally it would have to be an 80% LVR to do this to…[Read more]

If there is a boom on, why sell? You will probably make more money negatively gearing than with a cashflow positive place (unless it too is in a booming place!).

Terryw
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You could get a mortgage on the current property, using a no doc loan – no questions concerning income are asked. You could get $344,000 and use this as cash for the deposit for the second. You would then get another No Doc loan for the second one for 65% of the value, $475,000 = a total of $819,000 which should be enough to cover your expenses as…[Read more]

An option doesn’t have to have a fixed strike price. You could have, for example:
a) market price, determined by 3 independent valuers, including one from an ANZ panel valuer, less 10%.
b) market price, determined by 3 independent valuers, including one from an ANZ panel valuer, less 40% of all rent paid during the term.
c) a fixed price (eg. 20%…[Read more]

You haven’t factored in costs such as rates, repairs, agents fees, accounting etc.

These would be claimable, as would borrowing costs (over 5 years) and depreciation on fixtures and fittings and building (depending on age).

this would probably be negative cashflow even after tax breaks.

Are the capital growth prospects high? If not, why…[Read more]

Talk to your accountant. I would suggest a trust of somesort.

And watchout, you can’t just setup a LOC and use the money for the trust/company. Loan agreements need to be drawn up so that the interest can be claimed – as they will be different entitites.

Terryw
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I think Steve and Dave setup trusts where both were directors or the trustee companies.

Terryw
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Lucifer, Centrelink know all about trusts now. If you control one they will treat the trust assets as your own. They treat ‘control’ very broadly. So they generally do not work in this way anymore, even if you are a beneficiary, it will affetc your pension.

Kez, Just give centrelink a call and they will be able to tell you. My grandfather is…[Read more]

Originally posted by The Mortgage Adviser:
Terry,

I think most people would find it pretty hard finding a second mortgage that exceeds 80% LVR.

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Rob, Yes for commercial second mortgages, but we’re talking vendor financing here. ie where the vendor lends the deposit to the purchaser and takes a second mortgage as…[Read more]

Flipping is onselling before settlement. Of course, you can do that, no govt is going to stop you selling!

Terryw
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