There are a large number of ways you could structure LOs.

eg charge them $50 pw week extra rent and then give the tenant a discount onmarket value whne they purchase. it could be a dollar value ie double teh extra rent they paid as a discount, or a percentage value discount.

There are other examples in Steve’s book.

Terryw
Discover Home…[Read more]

I have it too and it is very technical, you probably do not need it!

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

Bid, it is allowable as you are borrowing money to buy income producing units in the hybrid trust. So you can claim the interest on this money against your personal tax return.

see http://www.chrisbatten.com.au for some details.

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

These days everything can be done online (most of the time). If all the boxes are ticked and everything ok, then it will give an instanteous response. But these pre approvals will be subject to verfication of everything (income, etc).

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

Mortgage brokers often come across clients about to be foreclosen upon (ie the owners looking for a way out). If you get in quick you could make an offer to the owner before they are foreclosed on. Once the bank gets hold of the property, they usually go to auction – as their can be no (or less) arguements about them selling it at a fair market…[Read more]

FM

A sandwich lease option. Yes, it sounds very good if you could do it. It is a way to get into the market without much money.

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

I would start the eviction process asap. Read up on the rules and process for your state (look for the tenants union site – some good info for tenants, but you will also find this useful). Maybe you could get your agent to send them a notice to vacate (do it all properly), this may shock them enough to bring them up to date.

Terryw
Discover Home…[Read more]

You could do it, but if you are selling at a price other than market value you would legally be required to pay stamp duty and taxes etc at the market value.

If you get audited you would have to justofy your prices. Maybe you could get some valuations done and ask the valuer to make them as high as possible.

Terryw
Discover Home Loans
North…[Read more]

Hi

I don’t really understand what you mean by ‘wholesale’. If you do as described how will the origianl owner make any money?

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

Yes, the value must be huge. besides the various church buildings, there are also many houses and commerical building (ie normal investment stuff) owned by religions. And they don’t pay taxes!!

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

Do you have a mortgage on your home? If so, maybe you should consider selling and paying profit into your home mortgage and then borrowing against that to invest.

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

Java

Trust Magic has the best explanation that I have seen so far. It is worth getting.

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

Hi Yack

Yes, Just off the top of my head, nearly all low docs have high exit fees – except maybe ANZ (60% LVR tho).

The exit fees on RAMS would have been approx 1.5% of the original loan amount in first 2 years plus $295. eg on a $200,000 loan this would be $3295.

It is best to ask up the broker up front what the fees will be. generally the low…[Read more]

It may be useful if you are on a high income this year (eg capital gain) and so could use the extra dedcutions to reduce tax.

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

Have a look at these two sites:
http://www.chrisbatten.com.au
http://www.mintgroup.com.au

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

This happens sometimes. Ask the vendors 9thru your solicitor)to extend the period. If they don’t, walk away from the deal. it owuld be too risky to go unconditional on a purchase without full approval.

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

Hi

In myst situation, I have just lend money to the trust at the same interest rate that the LOC charges me. So they cancel each other out. ie the trust is paying me $6000 interest on a loan and I am paying $6000 interest to the bank – net positon is nil.

You should draw up a legal contract for this, in case the ATO comes looking.

Also be aware…[Read more]

unfortunately most low docs have high exit fees. Did he ask the broker what the fees were? Also many low docs now revert to standard interesr rates after a few years.

If he thinks $1000 is high, he is lucky he didn’t go with RAMS then!!

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

Hi Andrew
It would work (as in do-able), but you would end up paying tax on your rent, CGT if you ever sell your ‘home’ and stamp duty on the sale. If you were only going to live there for another few years and buy a new house, then it may work out better. Have you done any sums?

I don’t think any accountants would recommend this unless you were…[Read more]

Depends. Some LOCs allow interest to be capitalised up to your limit, others require monthly payments of at least the interest.

Myydral, it is not that bad is it? She would have had to pay the interest anyway. I don’t think there is anything you can legally do, as the terms of the loan would be in the orignal loan contract. Just remember, don’t…[Read more]