Castledreamer

That’s good news![thumbsup2]

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

ET

Yes you can still borrow up to 80% or even 95% using a trust. But if you have two trustees, both have to guarrantee the loan. so this is where it hurts your borrowing capacity. You could be saving one person for future loans.

eg the mortgage insurers have a limit of about $1.5mil (for both). If you were joint trustees you could only borrow up…[Read more]

If you are talking about buying the shares in a company that owns the property rather than buying the property itself, then you will not be able to save stamp duty. You will still be charged (same amount I think)

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

Don’t deal with nab, but Westpac only takes into account 75% of the rental income. However, they are fairly good overall from a serviceability perspective.

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

I know one Sydney Financial Adviser that works for a fee (not commission based and therefore more impartial). His name is Sean Abbot, sean@smabbott.com.au

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

also try

http://www.chrisbatten.com.au
http://www.gatherumgoss.com.au (look for the book ‘trust magic’ on this site).

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

Another idea, similar the Landlordtobe above.

Why don’t you state that the market rent for the unit is around $280 per week rent, hence we are putting the rent up to this level. Then say however, if you think this is too much, please contact me on xxx and we can arrange a slight reduction.

That way if they don’t contact you, you get the full…[Read more]

Terry

There are private type lenders out there who will lend up to 70% LVR without many restrictions, rates are a bit higher (starting around 8%). You can also go up to about 80% LVR using a second mortgage – high rates. They are mainly interested in the securtiy, and may not even check your CRAA.

Terryw
Discover Home Loans
North…[Read more]

Kay

i agree with Pisces above. It is hard to say exactly what the limits are because it varies between lenders so much, and even with the one lender, it still varies lot.

As a guide, the two mortgage insurers have a limit of $800,000 and $750,000 each. So about $1.5 million in total is possible by using both. That is one reason to be careful…[Read more]

Good points. I think that was written by the Julia who posts here occaisionally.

Having a 100% offset account linked to the IP can have the same effect as a LOC, but usually with a cheaper interest rate. This keeps the monies separate so no decrease in the investment loan occurs when money is deposited in the account – but it still saves you…[Read more]

You had better talk to an account about transferring you business to a trust as there would be capital gains issues.

But I would think one way would be for teh trust to hold the shares in company.

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

I think companies are forwned upon is mainly because companies do not get the 50% CGT exemption which individuals and trusts get after holding the property for 12 months or more. This can amount to hundereds of thousands of $$$$$

Trusts also have tax advantages and asset protection advantages.

Look into getting a trust.

Terryw
Discover Home…[Read more]

Hi

you could use part of the $100,000 as deposits for further property. Get 95% LVR loans if possible (esp while you are still working) as this would leave you with some cash. That is the only way to get both property and business.

Once you stop you job and start a business it will be hard to get a loan. banks want to see 2 years history, and a…[Read more]

Julian

With the first trust I set up, I had both me and the wife as trustees. I didn’t realise at the time, but buying in two names or two trustees giving guarrantees severly limits your borrowing capacity. So I have set up some more, one each. I also have a unit trust for some joint investments, with the unit holder being my discretionary…[Read more]

For the $275 trust deeds, please have a look at
http://www.LawCentral.com.au

They also have a lot of good general info.

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

I think you can only claim in proportion of ownership.

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

Who cares about an 11sec solution when you have tripled the value in 8 months! Welldone.

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

PeterG

I have a few trusts, but generally just use a discretionary Trust (ie family trust) with individual trustees.

The trustee purchases assets on behalf of the beneficiaries of the trust. Just think of opening a bank account for a child. They ‘own’ the money, but you manage it for them. it is just like that.

The benefits are asset protection…[Read more]

I would have done things differently.

It seems you have cross securitised the IP loan with your existing home, and your wife is going guarrantor to your IP loan as she is part owner of one of the securities.

A safer and more flexible way to do it would be to withdraw funds on the existing loan (eg loan increase, redraw or LOC), and then get a…[Read more]

It depends on what assets/investments your Trusts hold. My accountant charges about $100 for the trust return and then about $100 per property, extra per shares and capitals gains and business etc.

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