I can answer 2.

The bank will want to know your income to see if you can service the full limit of the LOC.

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

Here I am.

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

Sometimes, it may be better to take a year off work if you are getting a large tax bill.

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

And what about when those ‘minors’ become ‘majors’ and maybe going to uni and not earning any money = good beneficiaries.

You can also distribute approx $650 each year to minors without them paying tax. It helps if you have lots of kids!

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

I don’t see there is an easier way for them to do it without you losing out. You could use a lease option and have them pay say $100 pw extra, then have all the extra repayments come off their purchase price – based on market price at the time they want to buy it. eg in two years time it may be worth $350,000, so they could get a $10,400 discount…[Read more]

brahms. I got this from a solicitor’s newsletter. I beleive it applies to any sort of mortgage and you could probably find out more from the office of state revenue.

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

Zedz

You should not hold assets in your company for asset protection reasons (possibly could be sued due to work) and tax reasons (no CGT discount etc). You could probably set up a trust and use the income from your business to gift or distribute to the trust.

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

Trust Magic is the only one you need.

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

Bid

I just asked my accountant this (ex ATO). He said it would be considered a disposal of an asset by the husband and he would have to pay CGT based on the market value. If the ATO disagrees with yout valuation the commissioner can issue his own.

So the wife’s cost base would be $350,00 and the husband would have to pay CGT as above.

Depending…[Read more]

Marc

I think you have confused yourself somewhere. No credit cards are needed, just you borrow a portion of the growth to use for living expenses. Keeping it low allows for periods of low growth. It is nothing like selling your real estate and then renting it back, but the opposite. Where as you wuld otherwise has to sell, you instead keep the…[Read more]

Just sell the options? ie assign it over to the new purchaser. Even if you have to settle, you would do a simualtaeneous settlement, so you would not need finance.

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

Hi Dolly

Lenders don’t really like taking into account incomes from pensions.

Depending on the locations of the properties, you may be able to get an asset loan at 65% LVR – no income declaration required. eg using your partners cash, you could probably buy something around the $360,000 mark – leaving your loan as it is. Intrest rates are higher…[Read more]

Aceyducey

Good idea, but you would have to transfer at market value, or at least pay tax on the market value. But you could reduce the CGT by seeking a few low valuations so if you are audited by the ATO, you could back up your case.

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

Bardon

I think it is better than that. You borrow money to buy the income producing units in a unit trust, so all interest is claimable against your personal income. As the trust is not paying any interest, it makes a large profit which can then be distributed at the trustees discretion. I am not sure if there is any requirement to distribute all…[Read more]

I do not use a corporate trustee on any of my trusts. But everyone is different, so better to get some professional advice.

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

To learn more about setting up trusts, go to http://www.lawcentral.com.au and register, then go thru the process of designing your own discretionary trust (all for free). If you actually go to the end and pay $275 you will get your trust deed on the spot – via a PDF file. Print it out and take it to the office of state revenue and pay your stamp duty -…[Read more]

I am having this problem too!!! Just threaten them with eviction. It is working on my tenant – for now anyway. I also have my LOs managed by a property manager which helps a lot.

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

Hi High

It is a good strategy. If you have say, 10 properties, you could increase the LOC on one property per year, so in year 11, you go back to IP one and do again – they would have hopefully more than doubled in this time.

Just don’t go taking too much. Maybe 80% of any growth would do. eg IP valued at $300,000 grew at 10% last year = $30,000…[Read more]

I beleive it is possible that the bank or lender could ask the borrower to lower the LVR (ie reduce the loan – a margin call). But this is an extreme case and I have never seen it happen.

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

I agree with Stu. It is best to get a pre approval in writing before even looking for a property.

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