Just talk to your solicitor and tell him you are going to offer vendor finance by lending the deposit to the purchaser. The solicitor can draw up the neccessary paperwork such as second mortgage.

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

You can generally borrow up to 95% in most areas of Australia if the loan is under $150,000. One mortgage insurer (PMI) approves these.

Check the postcode at:
http://www.pmigroup.com.au/LocationWizard.asp

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

I think Dale was worried that if you were buying and selling lots of properties quickly, as happens with wraps, then the ATO could class you as a trader and the properties as trading stock, and you would therefore lose the 50% CGT discount. For this reason, I think, he recommended you keep the buy and holds in a different structure – as you…[Read more]

Sue,

Those figures would be on the amount ‘evaded’.

The trouble with the ATO is that you are basically guilty until you can prove otherwise. So the commissioner could issue someone an amended assessment based on you low doc declared income and you would have to prove you did not actually earn this much.

Terryw
Discover Home Loans
North…[Read more]

Interesting.

often the ATO only imposes a 5% penalty for making voluntary disclosures. If they catch you making a false return, then it is around 70% and they can prosecute.

If is possible that the could issue assessments based on the figure declared in the low doc declaration (where it is higher than on the tax return). It would then be up to…[Read more]

I think pre nup is the way to go, but then again these can be challenged easily. Using a trust as well can help, but I have heard the family court can ‘get at’ assets in a trust if not done propertly.

It is not only marriage, but defacto relationships too.

(best to live alone!)

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

G7

These days you need to become an AMC (accredited mortgage broker). see http://www.miaa.com.au for more info. I think you will need to do a course unless you have two years relevant experience (eg working in a bank etc). Once you are an AMC, you can then get accredited with the individual banks.

You can join an existing company, buy a franchise or…[Read more]

There used to be a short course on property development at the University of Western Sydney.

There is also a new book on its way which may be of interest:
“An Intelligent Guide to Australian Property Development”
by Ron Forlee
0 731401 31 X RRP: $29.95

This book offers a sound approach to property development in Australia in both rising and…[Read more]

With only 20 people, there won’t be much profit!

Ps. I am not involved in this anyway, just reporting a course that is on.

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

The tax ruling on renting from your unit trust is:
TR 2002-18 – “Income tax: home loan unit trust arrangement”

Available from:
http://law.ato.gov.au/pdf/tr02-018.pdf

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

Probably true. You have to at least have the property on the market looker for renters to be able to claim. As far as I am aware.

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

Yes, pretty much all lenders will look at company/trusts on full doc.

On low doc, things are a bit different. ANZ, ING, Suncorp all seem to have problems in lending to companyies/trusts on low doc loans.

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

I agree with GP on the CGT.

Check out http://www.lawcentral.com.au for cheap trust deeds ($275).

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

Hi Delboy

It used to be easy to get wrap finance, but with recent changes in bank policies (probably due, in part at least, to bad publicity) it has become very difficult.

In theory, having positive cashflow will help your serviceability. But you will still have to come up with deposits for your purchases and you cannot using any of the equity…[Read more]

Interesting

Here is an example from 6packs link:

Example
Choosing to claim exemption for the land from the date of construction
Grant bought vacant land on which to build a new home under a contract that was settled on 3 September 1997. He bought his previous home under a contract that was settled on 3 November 1991.

Grant finished building his…[Read more]

Hi Jbro

By double stamp duty, I think Matt means once on the initial purchase and then again when transfering to the trust.

If you buy under the fresholds, then you would be saving stamp duty on the intial purchase, but will pay it on the transfer to the trust – the benefits cancelling each other out. The upside is you would be getting the…[Read more]

I am not sure, but would think you would have to pay fringe benefits tax on food.

In certain circumstances you can give meal allowances to the workers. They can buy their own meals, but can fully deduct the allowance if spent.

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

What happened to Rob’s post?

I think it is OK too. I know of people who have purchased properties for cash with the money coming from o/s and they did not need to go thru the FIRB.

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

Ez Rent

can you tell use more on ‘hui’. I remember one of my friends purchased his car using money form a hui.

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

I would say yes.

If you borrow money to fund income producing activity, then the interest should be deductible. So if you borrow money (ie redraw) to fund repairs on an investment property, it should be ok.

(I’m not an accountant).

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