If you buy the property (ie transfer title) you will have to pay stamp duty. In Vic it may be possible to sign the contract ‘and/or nominee’, and then to nominate another party before settlement. If you already have the nominee and have a written agreement in place before you sign, then you may be able to avoid stamp duty.

If it is a friend,…[Read more]

Suze

Why would it be better to buy in a company name? Companies do not get the 50% discount on CGT, so when you were to later transfer them to a trust, you would be charged 30% tax on the CG.

If something goes wrong, the bank may still be able to take your PPOR as you will be giving a personal guarrantee as Director, therefore your personal…[Read more]

Why limit yourself to the North Shore?

There is a really good accountant in the city,
http://www.strategicwealthmanagement.com.au/

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

A bird in the hand is worth two in the bush.

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

I just did some searching.

ID 2004/58 can be found at:
http://law.ato.gov.au/atolaw/view.htm?find=%222004%2F58%22&docid=AID/AID200458/00001

and

Also see:
ID 2004/59 Capital gains tax: sale of house – instalment sales contract – consequences of sale not proceeding
http://law.ato.gov.au/atolaw/view.htm?locid='AID/AID200459‘

Which states that the…[Read more]

Just remember this is only an interpretive decision, not law. The ATO will probably pick a test case and go to court.

Imagine if you had wrapped in properties in one year, each with a $20,000 markup. You would not receive this capital gain untill years down the track, but may be required to pay $200,000 in CGT upfront!

What happens if the…[Read more]

Shit!

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

Hi Daa

Don’t forget the cumulative effect-saving interest on interest. Also to save $500 after tax, you may have to earn about $1000 before. Every little bit helps.

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

Have you looked at ANZ’s Equity Manager? Last time I looked it was 7.07% and you could get a 0.60% discount off this by joining the professional package – making it 6.47%.

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

Do you have grounds to sue? If it was not a binding contract, maybe you can’t. You should have seen a solicitor to go over the contract, accountants and mortgage brokers aren’t qualified to give this sort of legal advice. I would definitly see a solicitor about this now.

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

I think Steve has previously meantioned that it is possible to get unlimited finance by setting up a new structure when you ‘max out’ the current one.

But this is not true as you must personally guarrantee each and every loan, so setting up a new structure has no effect on your borrowing capacity. each time you give a guarrantee it would go on…[Read more]

From what I have seen Caravan Parks have small returns for the risk involved. I haven’t looked at Strata ones tho.

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

Beware of offering an early settlement. Some (most) lenders are so, and you may not make it on time!

It may be better to go for a longer settlement on the contract and then settle early if you can.

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

Depending on location, it may be possible to get 100% finance of these types of deals on the one security.

There are lenders that will lend 70% of end value. In this case, if they value up at $1,300,000. You could borrow up to $910,000.

But you will have to supply a personal guarrantee. offhand, I do not know of any lender that will lend to a…[Read more]

Hi again George

Some say it is advisable to not have all your eggs in the one basket. It may be better to limit your trust’s assets – just in case. So after you buy a certain number of properties, just set up a new trust.

that’s all there is to it!

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

Hi George

You can get a partnership agreement for about $220 at
http://www.lawcentral.com.au

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

It is best to read up on everything you can before you go and see your soliticitor – saves money!

http://www.taxlawyers.com.au
http://www.chrisbatten.com.au
http://www.gatherumgoss.com

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

Hello Julie

If you are only intending to live in the property for a sort time and then rent it out, it may be an idea to consider purchasing it thru a trust structure and then renting it off the trust.

However there are a lot of things to consider. eg if you purchase in your own names and then move out later on, it may still be possible to sell…[Read more]

Funds to complete, simple means funds needed to complete the purchase – excluding the loan.

lenders want to know you are able to complete the purchase if they lend you, say, 80% of the price. Otherwise they maybe wasting their time in giving you a loan approval.

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

hi Yack

Basically nothing has happened since the above post.

I did not end up paying that company the extra money to issue a summons as I thought it was a bit much. The tenant still owes me the money – $1800 approx. I can still chase him if I want, but am a little hesitant at the moment.

If it was in NSW, I know the proceedure now, and could do…[Read more]