Little Mermaid

Someone recently had a good suggestion. Your trust could take a second mortgage over your property. That way if anything happened the trust would have the right to call in the mortgage before any other creditors.

If you have a current mortgage, I beleive the first mortgage holder may have to approve of this. ie allow you to give a…[Read more]

Hi Sebastian

Pre-payment of interest is only available on Interest Only loans and is only available if they are fixed for 1 year. This way nothing can change. Next June you will get another opportunity to prepay for the following year, or maybe change back to month by month.

Terryw
terryw@froggy.com.au

Maximus

You don’t have to find +ve cashflow properties. You can create them. Any property can be a +ve cashflow property-you can wrap them or lease option them.

You can also do things like rent out each room to students. Add another bedroom cheaply etc. Anything that will increase rent.

Terryw
terryw@froggy.com.au

They could get a low doc loan whereby they slft declare their income without providing proof. Rates around 7% unless they can prove they are in business and have an ABN.

or

They could get an asset lend whereby they will be lend money purely based on the value of their house. Not many lenders do this these days. The rates are pretty high – around…[Read more]

Thanks Felicity 8

Can anyone else check this?

Terryw
terryw@froggy.com.au

Sebastian

I am a Sydney based mortgage broker and could help you out!

Terryw
Terry@discoverhomeloans.com.au

Mate

I would buy 4 to 5 (or more? if you can qualify for high lvr loans) positively geared properties each generating $3000 each per year-using a trust of course. keep saving and keep reinvesting the cashflow into more of the same until you get what you what income wise.

Terryw
terryw@froggy.com.au

DJ

yep. most banks offer a discount of around 0.1% to 0.2%. The ATO requires that there be a commercial advantage in pre paying interest – otherwise you would be doing it just for tax advantages.

Terryw
terryw@froggy.com.au

I was going to say the same thing. I use a real estate agetnt to do all of my wraps from beginning to end. Everything could be posted to you overseas or you could give someone Power of Attorney so they can sign things for you. (Trusted Family member maybe – or i could do it for you )

Terryw
terryw@froggy.com.au

Hi

Can anyone that has actually guarranteed a loan for a company purchase please verify if it shows on your CRAA or not?

I think it would as the lender does a check on the guarrantor just as like they were a borrower. I hope I am wrong tho!

Terryw
terryw@froggy.com.au

Hi

I thought I already replied to this a couple of days ago, but my post is missing??

You could put the money in the offset account and pull it out to use for further investments. But when the money is withdrawn the interest payable on the home loan would just increase again. This portion would not be deductible.

However if you actually paid it…[Read more]

Hi Honky

How much are you going to purchase it for? Market Value?

1) You could use you house as collatrol and borrow 100%

2) You could borrow some money agains your house (via a redraw or LOC maybe) and use this as deposit on another loan for the new house.

3) You could get the parents to lend you the deposit, and get a loan loan for the…[Read more]

For some ideas check these sites out

Chris Batten Accountant and structuring expert
http://www.chrisbatten.com.au

and
Kevin Munro, Solicitors and accountants

Welcome

Lots of free articles on Trusts etc

Terryw
terryw@froggy.com.au

Felicity

What do you mean by
“I’ve been told that because the MI scrutinises the loan very very closely, they insist that guarantors have their credit history marked”

For any loan you apply for, your credit record will be marked (exept some private lenders). Even loans in a company name where you act as guarantor.

I know Steve’s technique, but…[Read more]

Spocky

I don’t think this will pose any problems with you claiming all the interest. I do this now (but haven’t been audited-yet).

You and your wife could just lend yourself the money anyway. Just charge yourself the same interest rate as the LOC.

Terryw
terryw@froggy.com.au

Hi Andrew

If you have an extra $50,000 in cash, why don’t you put it off your home loan and then redraw it again to invest. The itnerest on that portion should then be tax deductible – use a split loan if possible to make it clearly separate. That way you reduce your non deductible debt.

If you can buy +vely geared property the rent from this…[Read more]

Sooshie

If the business has gone into administration, then the director or owner will no longer have any control over teh company. An administrator would have been appointed and they are teh ones that make all the decisions from the time of their appointment.

If is was possible to nominate another purchaser, I think the administrator would have…[Read more]

I was looking at doing this a few years ago and had estimates from $15,000 to $20,000. You may save if there are materials from teh old house you can actually sell.

Terryw
terryw@froggy.com.au

Jack

I understand that this is not possible, even if you have and/or nominee, without incurring double stamp duty (in NSW anyway). i have done in in Vic, but have heard the laws have changed and it is not possible down there either.

With options I think they have to be stamped by the land titles office to make them a legal document and that…[Read more]

Ken

I think you’ll find more info at http://www.navra.com.au. There is an article somewhere there called ‘cashbonds’.

Terryw
terryw@froggy.com.au