And you may lose the tax exempion status of your home. Why not do it and not declare it. It si not worth the hassle just to save a few dollars per week in tax.

Terryw
terry@discoverhomeloans.com.au

easy

Your uncle simply gets a loan increase (a split or a LOC) and lends you the money. That is the safest way for your uncle to do it. That way his home is not on the line. And it won’t affect your borrowing capacity.

Terryw
terry@discoverhomeloans.com.au

If your loan is very small and you start renting out your old home it will probably be positively geared and you will be paying tax on this ‘profit’.

If you then buy a new home and borrow most of the money, then you will be paying lots of interest on your new home. To make things worse, this is not deductible.

You could increase the loan on the…[Read more]

A Letter from an agent should do it. Even better would be moving back in with your parents or a relative rent free! It is OK as long as that is what you are intending to do.

Terryw
terry@discoverhomeloans.com.au

If you are going to sell, have you considered moving into one of your future IPs for a short time and claiming that as your PPOR. you will be exempt from CGT for up to 6 years.

Terryw
terry@discoverhomeloans.com.au

If you have a lot of loans with one bank, then you have something to bargin with. You can ask for discounts etc. If they stuff you around, then ask for a payout figure and see how quickly things change.

But I generally prefer to have loans spread out. Different banks have different serviceability calculations anyway, so you can often qualfiy for…[Read more]

Michael

using a company is not a good idea if buying property. No CGT discount. Using a trust is much better in my opinion.

Ig you use your car for income related purposes (such as viewing properties etc), you can claim part of the expenses as a deduction. Have a look in the tax pack for more details. A company get buy or lease the car, but if…[Read more]

Lucky

1) I think the going rate for borrowing money from people is 10 to 15% pa.

2) If you have already refianced, then you must meet serviceability so you should be able to refiannce again. But watchout for exit fees, and entry fees again. It may be wise to wait 6 months to get some more growth.

Terryw
terry@discoverhomeloans.com.au

Hi JJ

I live in Sydney too, and would love to meet up sometime. I also have the cashflow game, so maybe we could organise a small group to play sometime.

Terryw
terry@discoverhomeloans.com.au

Hi Johnny

You could get this sort of return by wrapping. Ona $100,000 property, you could make about $5000 per year profit, so you would need at least 3 properties wrapped to get $15,000. You would also get captial gains when they cashed you out.

Terryw
terry@discoverhomeloans.com.au

Hi Johnny

I am sure you could be the return you are currently getting on your money.

With $380,000 in cash you could buy a lot of property. For example you could put down 20% deposits and borrow the rest. Maybe go for cashflow or a rundown place that you could rejuvenate? Get one and see how you go. (eg you could theoretically buy about 15 x…[Read more]

I agree with Regina, it is a great problem to have.

I would be incloned to keep this property as it and borrow against it for income producing property which you could then redirect into that personal loan. Do you have a loan on your PPOR?

When you decide to retire (could be very soon!), you could sell this proeprty and then pay off some of the…[Read more]

Jackson

I haven’t got one but have seen a copy. It seems to be pretty comprehensive. I think he just recomends a Discretionary trust with a corporate trustee. There are lots of diagrams explaining this and asset protection etc.

It is interesting how different accountants recommend different structures. I’d be itnerested to hear how they all…[Read more]

KuRCE

Land tax is levied on investment propertis (if you reach the threshold), but they only charge you on the value on the land component, nit the buildings or other improvements.

Terryw
terry@discoverhomeloans.com.au

Hey, watch out when interviewing accountants. A friend of mine did that and then a got a $200 bill in the mail. And she didn’t even know anything about trusts and just talked about negative gearing. My friend thought he would jsut talk to her about becoming his accountant! And she charged him!

Terryw
terry@discoverhomeloans.com.au

There is not much to lease options. The contracts are just a lease wtih a separate contract for the option. You can have the option strike price decrease just like a PI loan over 30 years if you wish. In that sense, it will be almost the same as a wrap.

Terryw
terry@discoverhomeloans.com.au

SMB web site shows it as being under construction.

try http://www.creativerealestateinvesting.com.au

Terryw
terry@discoverhomeloans.com.au

Hi

I am a mortgage broker in Sydney and we have a private financier who funds these sorts of deals. He will basically lend on 70% of the end value, subject to the location of the property etc.

If the values come in at $250,000 each, the 70% of this is $525,000. This should be enough to cover the construction costs, and there is meat in there for…[Read more]

Melanie

Good point. I have seen some of my clients use unit trusts to purchase property in partnerships and then a discretionary trust holding the units.

I have also heard it suggested that you buy and holds should be kept in a different trust to your wraps. If you are buying and selling more than a few properties in a short period of time, the…[Read more]

You may want to consider some life insurance and some sort of trauma insurance incase you get incapacitated and can’t work-especially if you are negatively geared.

Terryw
terry@discoverhomeloans.com.au