Fullout

Don’t do it. It is not worth the very high risk of losing all you money for a mere 25%.

A lot of HK disciples recently lost all their money when the developer went bust-some fraud involved as well. Some lost $300,000!

“be careful if you are talking to bank staff about finance structures. They know about their own products”

Sometimes they don’t even know about their own products!

Terryw
terryw@froggy.com.au

try
http://www.chrisbatten.com.au
http://www.taxlegal.com.au

Terryw
terryw@froggy.com.au

For what its worth, I completely agree with Stu.

Terryw
(Mortgage Broker)

Terryw
terryw@froggy.com.au

There was a whole development that went bust recently. Many people have lost $100,000 and more in this mezzanine finance investment. And the company involved was allegedly intorduced to investors through a ‘investment’ company famous for Mezz finance.

Terryw
terryw@froggy.com.au

I am in Sydney but honestly could not recommend any accountant up here that I know of. I would rather recomend Dale Gathenum Goss in Melbourne. He understands wraps, property and trusts fully.

Terryw
terryw@froggy.com.au

I also rent while at the same time owing many investment properties.

One good idea is to live in one of your rental properties as your PPOR for a short time. It is then CGT free if you sell (within 6 years)-even if you rent it out. At the same time run some sort of business from home so that you can claim part of the rent as a tax deduction. And…[Read more]

007

It is probably a good idea to check out big places like Masterton initially and then to get some quotes from local builders. Which area are you lokking at?

Terryw
terryw@froggy.com.au

hwd007

You can make some good money doing this. One of my clients is doing it now and I managed to get him 100% finance for the whole thing. He has purchased some blocks of land off the plan (ie before subdivision) and is going to build duplexes on the blocks. We could get him finance based on the end value of the townhouses and there was enough…[Read more]

This is interesting. I once seen accountant Dale GG answer a question about doing this, and he said he new of no way to avoid stamp duty. Maybe this is a way of minimising it. But is there stamp duty on shares now? I thought it was abolished. to buy the company would mean just transfering the shares, so maybe there would be no stamp duty…[Read more]

hwd007

Good try again. You can sell it for $1 if you wish, but you must pay tax and stamp duty at the market value.

Terryw
terryw@froggy.com.au

Hi

I am a mortgage broker and think JohnD makes a good point.

If you get a $200,000 loan with your spouse (or anyone) and then go for another loan on your own, when the bank looks at your serviceability, it will generally consider you liable for the whole $200,000 (But will only take into account half of the rent you receive for that…[Read more]

Red

I think with a Hybrid trust, the unit holder can borrow to buy the units, and the interest on this is able to be offset against the unit holders other income. check out http://www.chrisbatten.com.au

Terryw
terryw@froggy.com.au

Ishita

Thanks again.

I think I can answer that question. Discretionary Trusts cannot distribute losses. Losses must be quarrantined in the trust until the Trust makes a profit. I am not sure about unit trusts?

A hybrid Trust can partially get around this as the unit holder borrows money to buy the units, and so is able to claim the interest on…[Read more]

There are a lot of Mortgage Brokers out there that don’t know what they are doing. There are many lenders that offer 90% loans without genuine savings. And I know of one with 95% LVR with no genuine savings.

Terryw
terryw@froggy.com.au

Thanks Ishita

What was in it for Purpetual trustees? Do they set up trusts and what do they charge?

And did htey mention Hybrid Trusts?

I think Grandfathering means it won’t be retrospective. ie won’t apply for assets already owned. eg if you currently own a house and then sell it to a trust just before you go bankrupt, the courts can undo that…[Read more]

i used to work in Japan, and I know the NAB and other Aust banks will actually lend you money for property in Aust in Yen at Japanese interest rates (1 to 2%). But you must be working over in Japan earning yen. I think there are a few people using these Yen loans.
Over the past few years the exchange rate has gone from about $1=60Yen to…[Read more]

I remember reading an Investors Club newsletter a few years ago where they mentioned a way to be able to legally claim costs on land. I think if it was intended to eventually be an IP. So it may be possible-check with a GOOD accountant.

Terryw
terryw@froggy.com.au

Hwd

Sure it is legal to pay off someone else’s debt. But in Australia, you can’t assume someone else’s loan. (I think you can in America).

And it is legal to sell for undermarket value, but you must pay stamp duty and CGT at market rates-otherwise it is fraud.

And I don’t knwo about you example above, I don’t think it would make a difference in…[Read more]

Tas Investor

You would think that it so, but… LMI polcies can vary between lenders. Eg GE with bank A has one policy, but GE has a different policy with bank B.Eg one building society (Widebay Capricorn) is able to offer 95% loans with no genuine savings.

I don’t know why this is the case, but suspect each bank negotiates the criteria the the…[Read more]