Andrew, good strategy which should be OK as you are purchasing another 49% of the property, so can borrow the money to do this. You wife can then use the proceeds to pay off your PPOR or other.

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

From memory, Stuart (of this forum) has a good article on loan structuring in one of the recent issues of the API magazine. In the article, he demonstrates why it is not a good idea to cross securitise.

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

My advice is to not rely on accountants entirely. They get it wrong, and some do not specialise in this area so don’t really understand.

It is best to read as much as you can on this forum and others, but read critically as you don’t really know if you can trust the information given. Then read up on the various papers on trusts and structures…[Read more]

You are limited to one bank – which can be a pain in the arse when they won’t lend you any more!

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

You need to list your purchase price.

Asa rough rule of thumb, selling price less purchase price gives the gain, you then get a 50% discount, then divide into 2 and this amount goes ontop of your other income.

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

Mel. They all should, but I know some loan application forms are not worded very well>

But it would appear on your CRAA anyway.

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

In NSW, Stamp duty is payable within 3 months of exchange of contracts. Even on wraps.

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

I agree with Simon. There are plenty of banks out there, just try another.

Another option is to threaten to leave your current bank and to refinance everything. This works sometimes.

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

At such high fixed rates, the exit fees for your current loan could be enornmous. Have your inquired what these will be? It may still be worth leaving.

I agree with Steven, it is better to get money release and use that as deposit for further property. Taking your values as given, this could give you an extra $104,000 to play with, enabling you…[Read more]

FW

Have a look at Adelaide bank.

I think the problem may be with the way the cotnract was structured, as Lucifer has said. May be too late now??

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

Hi Ian

It is still worthwhile considering using a trust. You never know when your situation will change. eg you could get married tomorrow, then your new spouse and her relatives would automatically become beneficiaries.

You also have the option of forming a company later on and having that as beneificary too (or even another…[Read more]

Also bear in mind, if you were to sell the property or to refinance within the fixed period, there could be very high exit fees, depending on the rates at the time.

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

Ni Hao

A friend of mine purchased an new apartment in Shanghai city a few years ago. She is Chinese, but no longer a citizen, but was still able to get 70% finance. It was positively geared from the start, and has since more than doubled in value.

I think China is good value, but maybe you have missed the boat? Beijing is also booming because of…[Read more]

The deed is usually worded so that any of your relatives can be beneficiaries.

Non residents can be beneficiaries, but there are special tax rules for non residents so they may be charged higher tax – about 30% I think.

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

Cia

Trusts cannot distribute losses, but they can be retained and offset against future profits.

Have a look at Hybrid Trusts. You may be able to get around this buy using a hybrid trust and borrowing the money in your own name (not the trust) so you can claim the interest on your personal income.

Terryw
Discover Home Loans
North…[Read more]

Wrappack. It would be about 10 to 12%

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

You can wrap any property. including highly priced Sydney property.

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

Hi

I agree, it is capital growth that will make you rich. Even getting $70pw cashflow from a property is not much if it doesn’t increase in value.

It would be great if you could get both, and sometimes you can.

And you may not have to wait 10 years for growth. I know a few people who’s properties have doubled in 12 months.

Terryw
Discover Home…[Read more]

Cannot be done.

you could consider selling the IP, using the proceeds to pay down the PPOR, and then borrowing against this to buy another IP. But then you have all the associated costs: Stamp duty, CGT, RE fees etc. (Or you could sell to your trust).

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

Hi Scott

There is no reason you have to change title just to refinance. It is up to you as a personal decision.

Changing title means you a actually selling half of the house to your partner. SO you may need a solicitor, and will have to pay stamp duty on the value of the share transferred. If it is not your main residence, then you may also have…[Read more]