Not much happens. I know a few people like this. maybe when you eventually lodge you could write a letter to the ATO with a nice reason.

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

There will be a time when banks will say no more, but shopping around should let you keep going. some banks get worried when you are too rent reliant. I once asked a lender to define rent reliant, and was told if the client needed the rent to service the loan, then they are rent reliant!!!

Terryw
Discover Home Loans
North…[Read more]

James is correct. some (unscrupulus?) people change the spelling in their names slightly. It helps if you have a space in your name or a hyphen.

Also some banks do not do a cra check if under a certain lvr.

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

I was keen on cashflow positive properties, but my ideas have changed and would now only go for growth. Any cashflow would be a bonus.

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

I have friends that purchased a few housing commission houses in Sydney a few years ago. The recently sold them, one with a $150,000 capital gain and the other a $69,000 gain (in about 12 months).

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

I agree that the first one is the hardest. It is harder to qualify for the finance and it is harder because you don’t really know what you are doing.

But it sounds like you have planned well as this property may also be CGT free if you sell within 6 years.

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

That may be a good idea to sell the IP and pay off bad debt. Have you factored in capital gains tax?

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

Penguin

It varies, but generally you will have to be self employed for 2 years (proven by ABN history). Some will do low docs to PAYE. Some lenders will lend to anyone on low doc loans.

Also soem lenders will not lend to companies or trusts under the low doc products (eg ING and Suncorp)

Terryw
Discover Home Loans
North…[Read more]

Dan

Trusts are tax effective – eg. you can distribute the income to family members not working and pay no tax.

Having a company as beneficiary is not problem, the beneficiaries cannot be sued. If you meant trustee, having a company has added protection, but you should not have a trading company as trustee. It is better to set up a new company…[Read more]

Hi Jaff

Yes, I misread your post, you would put 20% on the purchase price – before the FHOG was minused. Your numbers seem correct, but an 8% interest rate seems a bit high.

But from your original figures if you rented it you would be getting $19.69 per week +ve cashflow. If you wrapped it you would be getting $29.73.

So for getting an extra…[Read more]

There are lenders out there that will lend based on valuation only. No CRAA checks and no income checks. (They do not care if you can service the loan or not). So yes you can get a loan, but be careful.

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

Elves. I think the family law court would see it differently.

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

It is probably best to get it right from the beginning. I use a trust structure and recommend them.

You can actually set up a discretionary trust from $275 + stamp duty.

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

yes you can rent your home from your own trust. There is actually a tax ruling abut doing this with unit trusts – where the ATO took a dim view. But to my knowledge there is no ruling on discretionary trusts. All rent must be at market value, and don’t forget the home will not be CGT free when you sell (if) and you will ahve to pay land…[Read more]

I beleive ANZ and CBA also offer low docs with rates the same as their normal loans at 60% LVR. The loans with Macquarie Bank are good to as they go to 80% LVR, starting at 7.30%, but this rate drops down by 0.80% over 3 years.

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

You haven’t given all details but,

Resale price would be about $45,600 (20% more than asking price).
The wrappee would pay a small deposit, which would reduce your upfront costs.

This deposit would come off their purchase price and the remainder would be a loan to you. The interest rate is usually set about 2 to 3% above standard variable r…[Read more]

hi Derek

I have done the Navra course and consultation, but still can’t understand if you are experiencing serviceability problems, how to you get at the equity to release it to purchase the cashbond in the first place. Without using low doc loans of course. Do you know?

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

Your accountant is probably not in a position to give you advice on property – just on the tax aspects. An accountants dream is to reduce peoples tax, so he must be concerned about his clients doing things to pay more tax. But this is a narrow view and there is more to it.

However, I would be wary with buying cashflow positive property at the…[Read more]

I agree that you should not buy appreciating assets in a company name. But if you wish to, then the loan applicaiton is almost the same as getting the loan in your own name, except you will be guarranteeing the loan (or the directors of the company will). So the lender will want to know everything about you – assets and liabilities and income and…[Read more]

I personally like to have my loans with different banks (using 4 different banks at the moment), but if you have all loans with the one lender, you have more ammunition when negotiating deals with them. But then if their lending policy suddenly changes, you may have to go elsewhere for the next one – which is easy if you have a LOC setup for…[Read more]