Thanks JMN. I have laid low for a while now – they will think I have gone away. Now might be the time to retry.

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

Lookup Lewis O’Brien.

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

You really only need one, but when it runs out you would need to increase it again (assuming growth), or start a new LOC on another property.

You don’t have to refinance to increase the LOC.

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

Banks generally want to see 5% genuine savings for your first property. genuine savings means money buliding up in a bank acocunt for about 6 months.

Buying a cheaper investment property is probably the best way to get a foot in the door. If you keep saving for a Sydney property deposit, it could grow faster than you could save.

Terryw
Discover…[Read more]

If the wrappee’s loan ever gets less than the wrapper’s loan, then the wrappee may be in trouble. I think the wrappe should monitor the wrappers loan levels (eg reeceive copies of statements) to make sure this doesn’t happen. If the bank were to foreclose, the wrappe could end up with nothing.

Terryw
Discover Home Loans
North…[Read more]

Hi

This is a difficult one. The B&B thing would be a commercial loan. You wouldn’t get 80%, probably 70% or less. There may be other difficulties due to location. You would probably have to show you can service the loan on existing income.

If you want to buy land and construct, it is also difficult. Some banks will lend you money based on the…[Read more]

Banks do allow your to borrow the deposit in some circumstances. But you will need a good income as you would have to show you can service the repayments on both loans, and personal loans are at high rates over short periods, so the repayments can be very high.

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

It is not compulsory, but a good idea. If things go bad, the wrappee may end up saying they didn’t know what they were getting into, having legal advice means they can’t.

I think what you described happens a lot. Most solicitors don’t even know what a wrap is. To overcome this, you could send your clients to a solicitor that knows what they are…[Read more]

I agree with James. Deposit bond applications are just as difficult as loan applicaitons. So if you can only afford one, then probably you wouldn’t qualify anyway.

And beware of the so called ‘discounts’. Usually it is all crap.

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

Yes I think James is correct. With a hybrid, you borrow to buy the units in the trust, so you are not really lending to the trust.

If it was a standard discretionary trust, you may be able to do it, but it would in effect be diverting income from the trust to yourself. So you may end up paying more tax that you would otherwise. ie You would be…[Read more]

Zimonya

Yes the trustee can be a beneficiary. If you use your father as trustee, he will have to guarrantee all loans, but you could still access teh income via the distributions.

Corporate trustee makes it more secure. There may be times when the trustee can be sued, so having a company with no assets as trustee is safer in this…[Read more]

I owuld really look at a trust structure if I were you.
have a look at http://www.chrisbatten.com.au and watch all the free videos etc.

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

Depends on your situation. I would think if you are already wrapping, then ‘yes’ for the wrap kit. If investing in property already, then ‘yes’ for wealth guardian and ‘maybe’ for the wrap kit. I am not an accountant.

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

Beware of fixing rates with LOs. I did this on one of mine, then the tenant cashed me out earlier than expected, and I had very high breakcosts – which I couldn’t pass on.

With a LO you could do either PI or IO, and you could access the equity while using either of these, but becareful you don’t take your loan over what the tenant can cash you…[Read more]

Hi There!

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

Anubus

What if your were at fault and the insurance didn’t cover you. eg you may have done some electrical repairs without being a licenced electrician – and the tenant is electricuted. Or any of a number of possiblities.

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

In this situation, I would live in the first inv property for a short time period to establish it as my PPOR. Setup an IO loan with a 100% offset on this and others. Make sure they were all stand alone loans (not cross securitised). Pay IO and extra money into an offset account to save interest. Probably get the first proeprty in personal name and…[Read more]

If he is bankrupt, he cannot get a loan. If he is a discharged bankrupt, it will still be very hard to get a loan for a number of years. There will also be lvr restrictions and higher interest rates as lenders percieve a high risk in these sorts of loans.

Whatever structure you setup, you will have problems getting finance if the other party is…[Read more]

Hi Gordon

I think you can distribute to a newly formed trust. eg. in one of my deeds it states that a general benficary can be the trustee of any eligible trust. An eligible trust means any trust under which a beneficariary has any interest.
But I do not know all the tax rules regarding this issue – but would be interested to find out.

Ian,…[Read more]

One more thing to consider is, your wife will probably have to pay CGT on market value of her share sold.

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