Imagine your trust had a $6000 profit during the year. Your teenage son takes a year off to go to uni and has no income. The trust can divert all the income to the son and no tax would be paid (by either). If the assets had been purchased in the name of a high income earner, they could have paid about $3000 in tax.

So even with a small profit you…[Read more]

You could do it either way. COC is just a measurement used to compare different investment strategies. Infinity is nto real meaningful, so I would calculate it as if using 20% cash deposits. You could be using these deposits elsewhere, so that is what you want to compare.

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

Hi

I beleive Steve uses a company to buy as Trustee for a Discretionary Trust. The income goes to the trust, as the company’s sole role is trustee. The income from the trust can be then distributed to individuals or another company so that the max rate of tax paid is 30%.

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

If you are moving out and renting you should be able to take advantage of the 6 year rule. You can still class your oirignal home as your PPOR – even if you earn income, and pay no CGT if you sell. Do a search for more info.

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

What about establishing a religion? How do you do that?

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

Some sort of Trust structure should do you. Try to get a hold of “Trust Magic” a book by Dale Gatherum Goss, a melbourne based accountant.

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

Unfortunately you cannot get your profit until settlement. And you will not be able to get your deposit back until the property settles too.

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

Terry

it is my understanding that you may need a valuation when you move out of your PPOR as it is CGT exempt during this time. The CGT libility begins accurring once you move out (altho there are some ways around this).

What does the Tax Handbook say on this matter?

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

I beleive that you would not have to show the lease payments as a liability on your application as the cost is passed to the company. How does your salary appear on your payslips and group certificate. This would be the income you show.

Some banks take into account employer provided cars, and adjust your living expenses downwards to take this…[Read more]

Picja. You are right of course. It was just a slip of the tongue! I meant discharged bankrupt.

Infact, I htink it may even be unlawful for an undischarged bankrupt to borrow money.

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

Thanks Wayne. Pitty about stockcentral, from memory it was pretty good.

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

I agree with Yack that this is a good strategy. I would be a bit wary of property in regional areas at the moment as there may not be much capital gain in the near future (speculation!). It is the capital growth that makes people rich, not the income.

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

Whereabouts are you living?

Generally, most LOers mark up the rent by about 40% and the purchase price by about 20%. Using this as a guide, you could just type up a letter to the landlord saying you would like to pay more rent, in addition you will pay for all rates, repairs insurance etc. In return you just want the option to buy the property at…[Read more]

As an example, Bluestone Mortgages rates borrowers on the severity of their credit history. If you are bankrupt or in part 9 or 10, you are given the worst rating – ‘BBB’. If you have been discharged from bankruptcy for 1 year or more, you jump up a rung to ‘A’. Discharged more than 2 yrs ago, ‘AA’, more than 3 years ago ‘AAA’. If you have never…[Read more]

Hi

I know of one lender that will lend on valuation if higher than purchase price, but the max LVR is 70%, so it has to be an extremely good deal to get 100% finance.

Many people use rebates, like in Smiley’s example. You would technically be required to inform the bank of the details. Some people consider it fraud if you don’t, others say you…[Read more]

First, it may be wise to get a copy of your credit file to see what is on there. YOu can get a copy from Baycorp for free (they need a signed fax). the web address is http://www.creditadvantage.com.au.

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

Hi

I would just relax for a month or so and think things out. If you have sold properties you may have enough money to live on for a while. Things may seem pretty hectic at the moment, so it may not be a wise time to decide something major. Your husband may also find another job quicker than expected.

Terryw
Discover Home Loans
North…[Read more]

Most lenders will lend on value if the contract has been signed more than a year ago. There are some lender out there that will lend on value straight away, but the LVRs are low at 70%.

One way around it is to pay cash (from a LOC) and then get a loan after settlement based on the value.

Terryw
Discover Home Loans
North…[Read more]

I beleive that borrowing your equity to live on can be a good idea. You must have many properties and only borrow a low percentage of the growth tho. As long as your portfolio is growing faster than you are spending it, it should be ok. I would rather see someone do this than selling a property to access the funds.

BTW, I know someone doing this…[Read more]

If you are looking for people, it is just a matter of asking. Send letters, door knock, put ads in newspapers etc.

One of my clients sold an option over her proeprty to a developer. Both ended up making a fortune. I beleive the developer intially approached her via phone. He must have done a title searcha and then looked her up in the phone…[Read more]