i heard Robert Kiyosaki say he earnt about US$2 per book, which I thought wasn;t very much. But he also said he was selling 200,000 copies of Rich Dad Poor Dad in Japan alone that year.

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

Yes, the trust will have to pay tax on the income received as rent, but I think the idea is to have the property negatively geared, so the trust actually makes a loss. This loss cannot be distributed, but could be offset by other income of the trust.

The trouble is the trust must charge you market rents, so over time, the property will become…[Read more]

Borrowing over 80% means you will have to pay mortgage insurance. there are only 2 mortgage insurers and they both have a maximum exposure level. This means there will be a limit on the amount of money you could borrow-this limit is relatively low. So borrowing 80% or less will help you get around this.

Terryw
Discover Home Loans
North…[Read more]

This doesn’t sound right. Non recourse funding is where the lender lends to the company with only the property as secuirty and no directors guarrantees. I hanve’t found any lender that will do this. All want directors guarrantees.

I think he may have meant you are the person finding hte properties, whcih you put to your JV partners who then apply…[Read more]

You could probably get finance based on the valuation of this deal. It usually works as 70% of end value which is usually enough for you to get 100% finance. These are low docs and the rates are around 10% depending on location.

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

Sounds like good advice! You wouldn;t won the company, the trust would. Also any profit will be directed to the trust, from there you can distribute it to a wide variet of beneficiaries. Now you don’t have that choice.

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

Hi Buster

I am not an accountant, but wouls think that you could only claim expneses for inspections if you were running a property investment business or if you already had a property in the area you were travelling to. In that case you could only claim the portion that actually related to the property.
eg 5 nights on the Gold Coast with only…[Read more]

What happens is, if you apply for finance, an entry is made on your credit file. This entry doesn’t say anyyhing about whether you went ahead or were declined. It just indicates the date, the amount and the bank. If you aply for a loan and the bank sees a few recent enquiries, they may ask whether you went ahead or not. Some banks will reject you…[Read more]

Hi Jason

Can you speak to these people directly? if so you may be able to say to them, “look, I know someone that may be able to help you .. ” etc. Watch out for you banks policies, they may not like you doing this. Due to privacy legislation, you could jsut pass on their details wihtout their permission.

However, to receive a monetarty reward…[Read more]

Do you think it is still expensive?

My family owns a townhouse type (like half a duplex) property in Suita, just 15 min from the centre of Osaka. My grandmother in law bought it in 1943 for about 2,000,000 yen. it is now worth about 10,000,000 yen (about $140,000). Not very expensive, as my guess was initially about $500,000. It is in need of…[Read more]

Yes, a terrible story. Something similar happened to me too-before I was a broker. I had asked for a variable loan and when the documents came days before settlement it was too late to change. You may now be able to complain about that broker tot he MIAA (Mortgage Industry Association Australia)-If they are a member.

Terryw
Discover Home…[Read more]

Yes, I agree too. Don’t do it!

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

Hi Guys

I used to live in Japan too, and looked at some loan products available over there. NAB (and others?) offer loans in Yen for property located in Australia. Interest rates are about 2%, with an LVR of 70%. but if you stop earning yen or return to Australia, you have to pay back the loan or switch over to Aus$. You need 2 pay slips as proof…[Read more]

Some banks actually ask about HECS debt and take it ito consideration, because you will be paying less tax. But if you don’t tell them about it, there is no way they will ever know about it.

You used to get a discount if you paid lump sums off your HECS. I paid mine off this way, but it might be better to pay via the tax system. It could be…[Read more]

Suzie

$10,000 is almost 10% deposit. Could you come up with some more money from a credit card? Even at 17% interest rate, the figures may still work if the rent is that high.

Your broker might be trying to get some more commission by trying to get you to refiance everything too.

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

Helena

You would think so, but some banks insist on instructing the valuer directly, and won’t accept a report already done even if it is from the same valuer. There are difference sorts of valuations such as market valuation, bank valuation, and fire sale valuation (ie if you have to sell quick).

Terryw
Discover Home Loans
North…[Read more]

Have a look at TR 2002/18, Income tax: home loan unit trust arrangement.
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200218/NAT/ATO

(This is a Tax Ruling on renting you home from your Unit trust)

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

you may not need to refinance, just ask for an increase from the same bank. And when you say you have that much equity, are you leaving a 10 to 20% buffer in there as well?

I would get as much as you can now, using a LOC or separate split loan to keep it all separate for tax purposes.

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

What you really want is the full licence. Then you can open your own agency. To get this you must do the full course which is 4 years with TAFE (part time) or 7-12 weeks with a private fee paying institute (cost about $4000 to $5000). I think you also need 2 years experience working in the industry too (NSW the rules changed…[Read more]

One thing about giving up your ‘job’ is your loss of ability to qualify for the good loans. You will have to start applying for low docs, which generally means higher interest rates and hgiher LVRs. Just be mindfull of this.

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