For starters, have a look at:
http://www.chrisbatten.com.au

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

Yes the Govt has cracked down on this and therefore even if you trade thru a trust, the icome may have to be attributed to yourself personally. It is called the alienation of personal services income (I think), and you can probably find inof on the ATO site.

And if money is not distrubted from a discretionary trust, the income must be taxed at…[Read more]

Pricey

There are a few ways you can do this. eg>

1) get a 95% loan with mortgage insurance borrowed on top. This requires the least amount of upfront money. But you would need to be working about 6 months and show genuine savings for the deposit.

2) Borrow up to 80% of the value of the property with the deposit borrwed from family/friends. A…[Read more]

3 days is not much notice! Did you mean (above) they only paid $4000 deposit?

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

Melvin

That’s it. Don’t know what the ATO would think of it??

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

Dragon

It will be hard for a few months, or maybe years (from recent memory!), but you will get thru it.

I don’t like to see people sell. I woulld do what Mel suggested, set up a LOC or redraw now just in case you need it to live on for a while.

Tax time is comming up soon so you may get a nice tax refund too. Maternity allowance also is about…[Read more]

Bill

Yes you can do it legally. There are basically 2 ways.

1) cross securitise you existing property with the new. When you sell the exisiting one, the lender will need to revalue the remaining one. If it has gone up in value and the remaining laon will be 90% of its value or less, then ok.

2) Withdraw equity from the existing loan (eg redraw,…[Read more]

Hi Jackaroo

I agree with clint, just see a mortgage broker. It is hard to answer you question without all the relevant info.

Maybe you are also asking will lenders take the $50k profit from these deals into account? Generally, probably not until you have been doing it for 2 years and can support it by tax returns. They would probably see it as a…[Read more]

Chris

You will have to pay stamp duty on this, as well as legal fees. Also bear in mind that you will have to charge yourself market rent, and therefore after a number of years the rent will exceed the interest and the trust will be making a profit. Depending on who you distribute to, extra tax may be payable where otherwise you wouldn’t. Also…[Read more]

I recomend using a solicitor. Conveyancors may not pick up problems with the contract, like happened to me recently. Having a solicitor saved me from entering an unacceptable contract. I am not sure, but think conveyancers just deal with changing the names on titles and other ‘paper work’.

Terryw
Discover Home Loans
North…[Read more]

Somebanks will take annuities into account wehn assessing your income. The trouble is you have to be able to borrow to buy the annuity in the first place. You might as well use low doc loan instead.

And SIS, I think you have mixed it up. You pay the lender a sum initially and they give it back to you monthly plus interest.

The theory goes…[Read more]

Fireball, i agree with Elysium. It is not the end of the world, and may work out in the end.

In the meantime, to divert the rent to a trust (if you need to?), you could rent to a trust at a lower rent and then the trust could on rent to the tenant at a higher rent, making a little profit.

Terryw
Discover Home Loans
North…[Read more]

One of my tenants is currently 4 weeks behind, and I am in the process of evicting them (Vic).

I would get your PM to get onto them if they are more than 2 days late. Once they go over 14 days send them a Notice to vacate, and get your PM to go to court (VCAT in Victoria) to get a possession order. Then if they do leave the police can be…[Read more]

Felicity. Yep I have actually done that in victoria using the existing agreement trick.

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

SB

I used Westpac recently for some of my properties. It cost me around $400 per property and I think they gave me a multiple property discount of around 10%. This covers building and malicious damage etc by tenant. There is also cover for loss of rent if the property is unrentable for a certain period.

I don’t think you would need contents…[Read more]

Russell

You could possibly get 65% of end valuation with private financiers, rates are around 12%pa.

65% of $1,190,000 = $773,500.

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

I am not sure what exactly you mean by assigning contracts. If you are meaning to sign and/or nominee and then substitute the purchaser for a fee, then I can’t see how there could be any question of ethics!? (BTW, this can’t be done in every state without paying double stamp duty)

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

Hi Skydave

From the information you have given, you should be able to qualify for a loan. You would probably need to borrow 95% of the value of the property to leave some of your money for costs.

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

Mel, that is my understanding and experience too. (I tried to post earlier but couldn’t due to that flodd control thingy)

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

Yes, I think any transfer to a trust would be classed as a sale, and then stamp duty and CGT. A good way to avoid CGT is to simply never sell. Make sure you get some good advice before you buy anymore properties.

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