Yes, I have used a buyers agent to do wraps and lease options and has worked well-even after paying their fees. I haven’t got time to find positively geared properties in the outer areas.

Terryw
terry@discoverhomeloans.com.au

It is also best to keep loans separate for tax purposes. And it easier to refiannce just one of them in future (if necessary).

Terryw
terry@discoverhomeloans.com.au

Just look for an accountant that can provide some good advice to go with the trust deed. Most accounants will just purchase these generic documents off the net. It is the advice that distinguishes them.

Terryw
terry@discoverhomeloans.com.au

You will nearly always have to pass the mortgage insurance criteria if you are borrowing more than 80% of the value. A few exeptions are if you go through a non conforming lender such as Liberty or bluestone (but higher rates).

If pass the banks requirements, then maybe you could borrow the 20% from elsewhere intiailly. wait 6 months and then…[Read more]

What about stamp duty and mortgage stamp duty!

Terryw
terry@discoverhomeloans.com.au

Using a trust allows you to distribute any income at your (or the trustee) discretion to any beneficiary of the trust. If you buy in your name only, you are stuck with all the income. Beneficiaries are usually listed vaguely such as any current, future or past spouse, any children or future children, step children and grandchildren. So you may…[Read more]

That sounds reasonable I think. I’ve paid similar.

Terryw
terry@discoverhomeloans.com.au

There are generally more deductions available to a company or a business than an individual.

For some unusual ones (eg alcohol) see
http://www.gatherumgoss.com/business.htm

Terryw
terry@discoverhomeloans.com.au

You can certainly use the equity.

If you use equity and no actual cash, then the cash on cash return will really be infinity!

Terryw
terry@discoverhomeloans.com.au

Bruce Whitting.
http://www.mintgroup.com.au/about/profiles.htm

Terryw
terry@discoverhomeloans.com.au

I agree with Golfer. You should be eligible for a low doc loan as you are self employed.

When applying for the centrelink payments you will have to declare your income etc. There are now strict rules regarding companies and trusts, whereby even if you purchase in a company or trust the income will be attributed to you personally if you control…[Read more]

Good strategy, but capitalsing interest on the IP and claiming it is possibly not allowable. The ATO is fighting this in the courts at the moment. Is that what you meant? If you are just paying interest only it should be ok.

Terryw
terry@discoverhomeloans.com.au

Someone asked me for an explanation of the abbreviations in my post. I’ve emailed back teh answer, but I thought I might put them here as well just in case..

LVR means Loan to Value Ratio (eg $100,000 property with a $90,000 loan = 90% lvr)

LMI means Lenders Mortgage Insurance. Banks generally only lend to 80% LVR so if you want a higher LVR,…[Read more]

You can swap loans around, increasing one and decreasing the other for example. But for tax purposes, it is the purpose of the loan that matters.

But Garry wants to have a debt on his IP and no debt on his home for tax purposes. Unfortunately you can’t do that. The ATO will trace the funds and disallow it.

One way you could do it would be to…[Read more]

Did the bank manager include the potenital rent from the property you will be purchasing? From what I have seen of bank managers, probably not.

You could get a LOC setup to access some of that equity. You could then take the deposit for your new property from this LOC and go to a different lender for the main low. Some people use low doc loans…[Read more]

Even if they turn out to be good cashflwo, they may be very hard to onsell.

Terryw
terry@discoverhomeloans.com.au

Just found this on the ATO site, regarding Superfunds lending:

“Loans/financial assistance to members or a member’s relative
Trustees are prohibited from lending money or providing financial assistance from the fund to a member or a member’s relative. The use of a fund asset by a member or a member’s relative for no cost or as a guarantee to…[Read more]

picja1

Can a superfund actually invest where the security is mortgaged? There are also various rules about superfunds doing things where the trustees benefit, so be very careful before doing this, get some good advice.

Terryw
terry@discoverhomeloans.com.au

I agree with Melanie and would like to add there are considerable tax benefits to a trust as well. There is a good book written by an accountant called ‘Trust Magic’, available at:
http://www.gatherumgoss.com/

Terryw
terry@discoverhomeloans.com.au

There is a book available written by an Aussie, Andrew Grey:
http://www.creativerealestateinvesting.com.au/

The number of properties you can buy depends on many factors including your income, and deposits (or equity), and the price range of the properties.

Terryw
terry@discoverhomeloans.com.au