I am not too sure on financial planners. Beleive there are CFPs = Certified Financial Planners who must be members of the FPA (financial planners association of Australia) and then there are just Financial Planners who are not necessarily a member of the FPA, but have done a course to meet ASIC requirements (PS 146?), they may be to be licenced by…[Read more]

Pisces

You also need to take into account CGT on your small profit.

I think what you have described is actually a re-sale. A flip would be substituting another buyer before going unconditional -saving you $12,500 (in some states anyway). Eitherway it will be hard to make a profit in a falling market unless you can resell or flip quickly. Maybe…[Read more]

the problems with wrapping and LOs is the double stamp duty. ie when you buy it and then again when they buy it from you.

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

Lucifer

Why not use a trust with wraps or LOs (I do for both). This adds another layer of protection (your shares in the comany are exposed to creditors) and also allows the income (and capital gains if any) to be distributed at your discretion.

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

If you are borrowing $50,000 to purchase another property, then the interest on this loan to be attributed to the new property. But in the end, the overall figure would be the same.

ps I’m no accountant.

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

Have a look at this site:
http://www.diysuperfund.com.au/

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

Before you go to an accountant, I think you should spent $99 and buy the book “Trust Magic”. It will be better to get an idea about how trusts operate first and it will save you money by shortening your meeting with the accountant.

BTW, there is no need to list all family members or charities as beneficiaries as they are automatically…[Read more]

Lucifer,

There are many Financial Planners that charge an upfront fee for there services (and rebate any commissions received). I share any office with one, but he has not heard of wraps.

I also know another financial planner who is a property ‘guru’ (ie retired young using property), but he did not know what a wrap was and didn’t think much of…[Read more]

Jaffa

You just do a book entry, ie give them the money and they give it back to you. But they have to agree to it of course.

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

Bid, you can’t get the FHOG if purchased via a trust.

for individuals, I think there is no requirement to live in the property for a minimum set period, the legislation states you must live in it at some stage during the first 12 months.

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

I had a tenant do a runner owing money, VCAT ordered in my favour stating that they owned me the money and had abandoned the property. I put the matter with a private collection agency and they are hunting down the offender.

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

Lozza

The tenants on my lease options are responsible for all maintenance, repairs, rates and building insurance.

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

I think you will find it very difficult to find a FP that understands wraps. you might want to just ask your questions here or even on the Vendor Finance Assn Website: http://www.financewraps.asn.au

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

I have written goals and review then every month on a fixed day. I also to asset and liability statements on the same day every month.

For a long time I thought I had goals, but didn’t actually write them down – or just did something on a excel spreadsheet. But I have found actually writitng them on paper helps more.

Terryw
Discover Home…[Read more]

Bearhunter

With capital growth, the tenant in a LO may not need to come up with anymore downpayment to cash you out. Even if there is no capital growth, the rent credits may enable them to cash you out – but would take much longer.

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

Terence

Centrelink has ‘cracked down’ on trusts in recent years. If you control a trust they deem you to be ‘owning’ the assets and income of the trust. They define controlling as being a trustee or appointor, (and even maybe a beneficiary in some instances – altho you would not know if you are a beneficiary of some trusts).

Michael. If you had…[Read more]

It is also good to run a business thru a trust. So if you are going to be renting out your houseboat, then it would be an idea to have all the rent diverting into the trust.

Then if you earn, say $10,000 per year profit you culd distribute that to tow beneficiaries on low incomes and pay no tax at all.

Terryw
Discover Home Loans
North…[Read more]

It really depends on your strategy, etc. Both positive and negative gearing has worked in the past.

I wouldn’t be too concerned about minimisng tax. If you set up using a trust structure, it leave lots of opportunites to do this – now and later. Look more at the deal itself.

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

Yep. There is a tax ruling out there (somewhere??) on a family home being held via a trust. For tax purposes it cannot be classed as your main residence and will therefore be liable for CGT and land tax. You would also be required to pay market rent to the trust/company which in turn may have to pay tax on this.

If it is your tempory main…[Read more]

Don’t you tink they could drop even further? Esp when the new stamp duty rules kick in.

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