I think the builders will be paying GST on all materails etc used in construction and this should reflect in the higher price of new property. established property wouldn’t be effected. I think

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

Set

Sorry I didn’t really tell you much there!!

I am not 100% sure, but think NZ finance applications will still appear on your CRAA over here. Baycorp is a global company (ouch) so be careful.

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

All of your details are made public when using a company. Trusts are very private.

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

Thanks for that Niki and good luck with it all.

I agree that some of these properties that are cashflow positive are still bad investments and I would only ever (now) buy a property that had potential for capital growth. Without growth, cashflow is useless.

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

There are a few new tax rulings on vendor financing that came out early this year. Julia from Bantacs has made a few postings on these, and it seems the rules are different if the property has been rented out for a period before wrapping it.

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

There are various credit card promotions happening such as transferring you balance and receiving a 5.99% interest rate for the first 6 months (Amex). Maybe this is an option, but just be wary of having too many hits on your credit file – evry time you apply for credit a note is made on your file, and this does not look too good when later…[Read more]

I agree with Steven who agrees with Simon.

Geo I doubt that Dave is the same Dave as Steve’s Dave.

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

Hi Gavin

This is a specialised area of lending. I will ask around for some rough idea on LVR etc, but it is generally rather low at around 50-60% LVR for these. IO should not be too much of a problem, but getting it based on valuation of $1mil (not contract price) will probably be hard.

Usually the applicaiton fees for these are also high at…[Read more]

I don’t know. But think that any property held under a trust is not really ‘owned’ by you, so it is better to hold this way than not.

But if just walk away and they sell the property with still money left owing, they will come after you. Being ina different country will make it alot more difficult though.

It will be hard for you to buy anymore…[Read more]

Ausprop

Good idea. I beleive that you can find all of this sort of information ont he ATO site. The rules have tightened considerably in recent years, but it is very easy to set up a religious association – which could be classed as a charity under most trust deeds. But these would jsut be companies and would have to pay 30% tax unless they get…[Read more]

Tracey

I think I claimed the intial option fee as a capital gain, and then when excerised, the sale price less the purchase price is the gain. The sale price will already have taken into account the reduction due to the option fee coming off, so it wouldn’t be included twice. I don’t see why tax returns would need amending??

Terryw
Discover Home…[Read more]

One bad thing about companies is ASIC regulations and you details (DOB, country of birth, address etc) become avaialable to the public to see. Trusts aren’t regulated by ASIC so everything is private!!

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

Hi Pete

If it were me, I would change all of my loans to IO, and save all of the extra money into a 100% offset account rather than pay off Principle – this gives you the option of paying extra when you like, or if you like.

If your properties are not cross securitised, then you could probably take the first one, and borrow up to 80% of the…[Read more]

Yes if you can get a second mortgage of about 20% of the value you may be able to completely avoid mortgage insurance.

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

One yar is a long time. Why don’t you write a letter, asking for the payout figure and exit fees and say it is because you have decide to move banks as they won’t give you an increase. I bet they quickly change their minds!

It is better in writing as it can’t get brushed aside by some nobody like on the phone.

Terryw
Discover Home Loans
North…[Read more]

Westan

Good point. I just checked one of my trust deeds and it has any charity as being a beneficiary and it classes a charity broadly including any church, religious institution etc. So even if it is not a registered charity, it can still be a beneficiary.

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

I beleive that you can use an existing property as additional security for your wrap proeprty, but once you have onsold a property under a terms contract, you cannot then use that property as additional security for another loan – afterall you do not own the equity, it belongs to the wrapees. LOs can avoid this drama.

Terryw
Discover Home…[Read more]

hi Westan

It might actually be better to distribute the money to yourself and then make a donation to charity – remember you can only claim a deduction to a registered charity. This is because you may have a higher tax rate than the average tax that is paid by the trust.

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

If they can get the grant and are working part time, then they may be able to qualify for finance themselves??

Maybe you could lend them 20% deposit instead and take a second mortgage (say 20%) and they could get the finance in their names. You could then avoid paying stamp duty twice and still make a profit and still help…[Read more]

I am confused too.

In the above example, you have a capital gain, so it would mean you have to pay more tax, not get a reduction. But I am not really sure on how the tax on wraps works.

BTW Capital gains losses cannot be used to offset income tax.

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