I am in Sydney, but the agent is in Victoria. feel free to email me.

Terryw
terry@discoverhomeloans.com.au

Thats good about the craa. I think it probably wasn’t the trust that was the problem?? who did you try?

With an individual as trustee you can get the loan in your own name, and not tell the bank about the trust. it has the same tax consequences. Check with your accountant first of course. I have done this myself-a loan in my name on behalft of…[Read more]

I know he had Dave working in the accounting firm making money for deposits. He also probably did many wraps, and would have got the FHOG as deposit at least. If he did 10 wraps then $70,000 would have come in (maybe more?)

Terryw
terry@discoverhomeloans.com.au

I agree with crashy. if yo are just 2% short of 20% deposit, just get it from a credit card or borrow it.

And there are many banks that offer 90% loans with no genuine savings-with mortgage insurance.

If you have sold you IP and it is under contract, will you get any money out of that (or have you already included that in your figures?). If so,…[Read more]

Getting a loan for a trust is easy. What went wrong? Most banks will do them, some low doc lenders won’t (eg ING and Suncorp), but if you have individual trustees, you loans could be in the individual names instead of the trust. You must have a corporate trustee.

Most importantly, I hope all of these applications don’t go on your CRAA! Did you…[Read more]

I sue a buyers agent in Vic, and it has worked out well (many times!).

Terryw
terry@discoverhomeloans.com.au

Hi JayJay

Yes banks will lend to a new company with no history set up just for property investment. In fact most banks will only lend to non trading companies (ie setup purely for investments) because of the risk involved.

But I agree with Windel, you shouldn’t buy property in a company. Use a trust instead-with a corporate trustee.

If you are…[Read more]

Yes I beleive it does. You will need money for deposts, dosn’t really have to be savings. Lenders will lend you 95% intially, but when you start getting a few, the lvr rate goes down. LMI companies have maximum exposure levels. (about $1mil with PMI), so you will have to bring it down to under 80% to avoid LMI.

You could also possibly get the…[Read more]

Hi Captain

i know of a real estate agent that does wraps and lease options. He finds the properties, tenants and does all management. all cashflow properties.

Email me and I can give you his details.

Terryw
terry@discoverhomeloans.com.au

I’ve purchased 6 properties sight unseen. (i’ve still never seen them). All has gone well so far!!!

Terryw
terry@discoverhomeloans.com.au

Thanks for the tip guys. I will check that site out. Can you tell me one thing, when you borrow to buy these shares do they do a credit check? ie does it go on your craa?

And Steve Mcknight himself said at a seminar in 2001 that shares out perform property. (But you could gear property more, so it worked out better after gearing was taken into…[Read more]

Don’t forget Steve was putting in at least 20% deposts, the properties were cheap (mostly), he was selling a few for good capital gains, paying off the loans (reinvesting 1/3 of the +ve income). And he was getting a good deposit for each property that he wrapped as well as the +ve income.

And as a mortgage broker, I can tell you that replicating…[Read more]

Yes, you could borrow against the property. but you couldn’t just borrow against your share. he would have to agree to it and you could get a LOC, for eg, but it would affect his borrowing capacity as he would have to be a guarrantor (as his property is being used as security).

I purchased my first IP with my bother too, and it can get a bit…[Read more]

Delight

I agree, you have probably done your money on the reports. The real estate agent probably wouldn’t want the next potential purchaser getting a hold of it lisitng all the problems.

You should probably use this as your bargining tool. Get at least another $6000 off the price.

AS for low docs, 7.4% is too high. I could probably get you…[Read more]

There are low doc loans availble whereby you just state your income and no checks are made. But you have to be employed. the average lender will not lend on rental income alone. What happens if the house is untenanted?

There are also asset lends where you are not required to state an income at all. These start at around 65% LVR at relatively…[Read more]

Dunno. that’s just the way the market is. I suppose they are much less common than standard houses, so teh market for them is much smaller.

Terryw
terry@discoverhomeloans.com.au

Because they are very hard to sell!

Also anything that has a guarranteed rental income means (in the banks eyes) that this is built into the price.

Terryw
terry@discoverhomeloans.com.au

12 months is an awfully long time. Why not just use a mortgage broker? They have access to many lenders.

Terryw
terry@discoverhomeloans.com.au

Westan

Losses can aparently be diverted to the unit holder in hybrid trust which effectively means losses can be distributed from a trust.

I’ve only got a discretionary trust so haven’t actually tried this.

Terryw
terry@discoverhomeloans.com.au

Here is a link to a tax ruling on the ATO site:
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200218/NAT/ATO

Income tax: home loan unit trust arrangement
TR 2002/18

Terryw
terry@discoverhomeloans.com.au