Hi there

I have done a few lease options like this and have come tot he conclusion that I shouldn’t have!

1) I think to make it worthwhile for yourself, you should base the rent on PI payments on the strike price less the option fee. ie about $393 per week. adjusted quarterly in line with the CPI. This does not always work for properties in…[Read more]

Partnerships are not a good idea – in my opinion. You are best buying in one persons name, with a separate agreement drawn up. That way you can get the FHOG 4 times, and increase your borrowing capacity while decreasing risk.

Once you buy one each, you could then set up 4 different trusts – discretionary or Hybrid discretionary. Have one person…[Read more]

I had an investment property where the sewer was put on in the town, and connecting was compulsory. From memory is was about $5000 to connect, with the pipes comming in very near the back fence. Just a few years before I had connected one of those biocycles whihc cost me about $8000!. But apparently having sewarage connected adds a lot of value to…[Read more]

And another point, most variable loans allow you to pay extra without penalty, so you may as well get IO and pay the principle if and when you chose.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

You could sell tax free to your trust, this would release your money. Use this money to buy your new home, and the trust could borrow to buy the house from you making the trust loan much larger than your new home loan. You will have to pay stamp duty tho.

Another way, if owned jointly with spouse, sell you share or buy your spouses share. To do…[Read more]

Hi

I think you mean Interest Only loan??

With IO loans, you pay off the interest monthly over 5 years (usually) and then after 5 years, you can either, take another period of IO or the loan will convert to principle and interest (PI) over 25 years.

The interest is calculated by the interest rate x the loan amount, divide by 12 to get a monthly…[Read more]

Hi

Doesn’t sound very attactive. You may make a bit of cashflow, and then 5% on the purchase price after 3 years. It could be worth 20% more by this stage. And when you take into acocunt your costs like stamp duty etc, you will make hardly anything. Most LOs have a 20% margin on the price and a 3% margin on the interest rate.

Terryw
Discover…[Read more]

I think it is http://www.businesslawyer.com.au

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Hi Asiababy

I don’t think you could claim this as your mainresidence as you have not lived in it. see CGT Determination Number 51
Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer’s sole or principal residence?
http://law.ato.gov.au/atolaw/view.htm?locid='CGD/TD51/NAT/ATO‘

But since you…[Read more]

Yep. Nearly all lenders frown on wraps, with similar clauses in the loan contracts. Most wrappers get around this by not disclosing to the lenders. As long as things go smoothly, it is unlikely to come to notice.

Similar with lease options, most banks require their permission to be given if you are writing an option on a property that is being…[Read more]

Sounds risky to me. But, these sorts of towns do turn around and can come good again.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Originally posted by yack:

You can compare Steve Mcknight – ve+ low growth rural properties to Peter Spann – ve- high growth, renovate, city properties.

Me I prefer the Peter Spann strategy with a few Mcknight type properties.

Hi Yack, I haven’t read Steve’s new book yet, but don’t think he promotes low growth rural properties. From his last…[Read more]

maybe.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I heard of one case where prices had rsien substantially since contrustion began, so the company deliberately slowed down things so that they went over the sunset clause, enabling them to cancel the original contracts and resell the properties at a much higher price.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Steve’s is very basic and covers, different structures, Dale’s is much more detailed but only covers trusts.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Steven

That http://www.sjq.com.au/sjq/site.cfm is a good site. thanks.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

try also:
http://www.taxlawyers.com.au
http://www.lawcentral.com.au
http://www.chrisbatten.com.au

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Many accountants have little knowledge of trusts and do not recommend them. Then again, many people have good intentions of buying many properties, but end up only getting one and then move onto something different. So I think your accountant may be suggesting you buy one or two and see how you go, if you still think you will buy more, then set up…[Read more]

fixed rates have been dropping for a while, which means banks are not expecting a rate rise in the near future. I am locked into one loan at 7.10%!

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

My guess is by offering a high strike price. If a place is worth $600,000 as is, and you have the foresight to see it could be worth $1mil if you do x do it, then by offerinng $800,000 you are offering to pay more than market value you can probably get a cheaper option fee, and still go and make a huge profit.

Terryw
Discover Home Loans
North…[Read more]