There are various products such low doc loans where you have to state your income and no doc or asset lend loans where it is not even asked. You generallly have to be self employed for around 2 years for low docs (get an ABN now!).

Asset lends can be done on the value of the property alone. I know of one product at 85% lvr with a rate of 9.5% (+…[Read more]

That sort of information is not publically available (to my knowledge). You can email me the postcode and I will let you know.

Terryw
terry@discoverhomeloans.com.au

There are currently only 2 mortgage insurers in Australia. GE will cover 4740, but not 4741. PMI will cover anywhere in Australia, but the LVR will depend on the purchase price. Possibly up to 95% if less than $150,000.

BTW the criteria for both GE and PMI has changed as of 01 July this year, and it is now easier to get mortgage insurance…[Read more]

Could you please rephrase that?

Are you saying you want to distribute income to a company (wihtout actually distributing it?), and then teh company loaning the money back to the trust (wihtout actually any money changing hands?). And you don’t want it to show up on the company tax records so the company doesn’t pay tax on it?

I don’t think you…[Read more]

vik_fam,

I’ve done some loease options and some wraps and I agree that LOs seem less complicated. Here are some comments:
In a wrap if the wrappees die, they can leave ‘their’ property to whomever they want, if they want to move out, they can sell it, or you wraper may even buy it back. They will probably have some equity, depending on how soon…[Read more]

Marie

Yes this is common and good to do if you have enough equity. Then if the bank doesn’t give you what they want, just go to antoher bank. Most people like to do it the other way round, make their home debt free-itmakes them feel safer.

BTW did you mean pawn?

Terryw
terry@discoverhomeloans.com.au

I have mixed feelings. I agree that his first 2 books really opened my eyes and changed the way that I invested.

What he writes is generally good, even if it is part fiction. But I don’t like him making money by selling overpriced tapesets and courses to the masses. I went to one of his seminars in Sydney (free tickets) and he said he made US$2…[Read more]

Paul

Hi, I think property is fairly safe. It is very hard to lose money with property (but not imposisble). Since you have a lot of equity, you could do a lot of property investing. But maybe you could buy one and see how you go, if it works buy another etc.

I have done 6 wraps using a real estate agent. I haven’t even seen the proeprties and…[Read more]

I’ve done a few wraps, and the quickest that I have been cashed out is 16 months. (this happens when they refinance with a bank-at a cheaper interest rate).

Terryw
terry@discoverhomeloans.com.au

Brizza. That is correct, the bank has to cover themselves if you don’t pay. They can foreclose on you and sell the property, but there is a chance that they won’t be able to get what you paid for it and aslo costs involved, so they give themselves a margin of around 20%. They are willing to take a lower margin, if you pay their insurance for this…[Read more]

Can’t do that in Australia. You can only offset a capital gain against a loss.

Terryw
terry@discoverhomeloans.com.au

Banks generally like you to be employed for at least 6 months. For 95% loans you will have to show genuine savings of at least 3% of the purchase price (if you can get FHOG). There are 100% loans available for owner occupiers, conditions are tougher and include being in same job for at least 12 months.

There are various products available…[Read more]

Westan

I think that if your trust was set up before you pruchased your properties then it will be ok, but don’tthink you can just assign existing properties to a trust without actually selling them to yourself as trustee for the trust. But I am not a lawyer or accountant so could be wrong. I would like to know though as I have some properties…[Read more]

Windel and Stu

Let me guess, they wanted to take a charge over the company as well as personal guarrantees? Or was it a Hybrid trust?

Terryw
terry@discoverhomeloans.com.au

I don’t think you can own a property under a business name. it has to be individual names or a company. It is the structure that is important.

Maybe a trust is best for your situation?

Terryw
terry@discoverhomeloans.com.au

I personally will never fix again. It makes you trapped to the bank. very hard to sell or to refinance without paying penalties. I know people who had had to m=pay more than $20,000 in penalties from breaking a fixed loan (house sold due to divorce settlment).

Terryw
terry@discoverhomeloans.com.au

I don’t think it would matter. They would see how many properties you are claiming for and if the claims are within the generally accepted limits then you wouldn’t stick out.

(I have a client who earns more than $100,000 but has a taxable income of almost $0. I have just introduced him to the concept of +ve cashflow properties and he is now very…[Read more]

Brizza, No you can’t. Just add up the total value of the property and the total value of loans and multiply by 90%.

You may be able to go to 95% though.

Terryw
terry@discoverhomeloans.com.au

Comdom

You can’t just transfer you properties to a trust. They will have to be sold to the trust, this means CGT and stamp duty implications. Do some figures, it may not be worth it.

Really you should be talking to an accountant about this. You would probably need a Discretionary trust or a Hybrid discretionary…[Read more]

Property tracker is now available for free:
http://www.otter-software.com.au/Software/PropertyTrackerPages/NEWSBREAKNOWFREE.html

Terryw
terry@discoverhomeloans.com.au