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Not really my area of interest, your conveyancing lawyer should be able to advise.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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A property lawyer should be able to advise on this. laws differ from state to state.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Will be hard to get a loan with a family member providing a security guarantee if they are not benefiting from the property. ideally you would get the family member to borrow and lend to the entity purchasing.
Commercial generally needs at least 30% deposit plus closing costs so it can eat up a lot of your equity/cash. Also can be harder to borrow against any increase in value compared to residential.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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The contract is conditional upon finance being granted, so if no finance is granted you could terminate the contract provided you have complied with the other clauses.
There is nothing mentioned in these clauses about an extension, or a letter.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Where will the deposits come from?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Do you think values where you are renting will increase in the near future?
renting is probably cheaper than owning so no point in buying unless you think values will grow faster than what if costs you to rent (renting – home costs)Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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That is really a personal decision with a bit of growth predictions thrown in.
Selling one property to buy another will generally eat into about 10% of the value, assuming CGT free, as you have agents fees, stamp duty etc.But it could work out better as you would be saving non-deductible interest.
Consider some alternatives such as a related party sale.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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No, interest would still be deductible. But they are proposing to limit negative gearing, or using a loss from property investing to reduce your other income.
Without any draft legislation it is impossible to know what they are proposing.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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i can’t give you complex legal advice on a forum, and even in private I wouldn’t advise on foreign trusts and tax as it is not an area that i work in. As one example, consider the tax consequences if a settlor can benefit from a trust.
Another example is asset protection – you being an intermediary opens a can of worms.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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To be clear, here is an extract from Schedule 1 of the NCCP. So, if you are in the business of buying and renovating properties for profit then NCCP does not apply. If you borrow in a company or trust name the NCCP does not apply.
The Code is different to the NCCP. The Code is just a schedule of the NCCP, i.e. a part of it.
What do you think of s29 of the NCCP?
http://classic.austlii.edu.au/au/legis/cth/consol_act/nccpa2009377/s29.htmlTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Who is the borrower?
You or a company?
If it is the company, why is the money going into your account?The corp trustee is the borrower.
Reason for considering to transfer to me first and than having me to transfer to the corp trustee is more from an ease of management point of view.
My parents are old folks and it is a hassle for them to transfer money to overseas. For example, ANZ now days no longer does overseas transfer across the counter any more, and you must call them on their support line to do an international transfer. While ANZ has good business reasons to do it this way, it just means more hassle for old moms and dads, so its much easier for them to transfer it to me and then let me handle all of those hassle.
Or it could be that money is not transferred directly from a personal bank account to the corp trustee, but instead is done via one of those money transfer entities such as XEMoney (who offers money transfers to overseas with more attractive rates compare to normal banks). In this case then everything is done online and again, it is a huge hassle for old moms and dads due to them being computer illiterate to do that, so it is much easier for me to handle those situations. (unless they are willing to share their banking passwords with me, but I would never ask for such as this is their private password and they are not supposed to share with me!)
sounds like you are the borrower to me.
Sounds like a host of legal issues too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Who is the borrower?
You or a company?
If it is the company, why is the money going into your account?Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think you didn’t understand my previous post as I answered these.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Your dad should seek legal advice.
But if he is lending to a corporate trustee the National Credit Code does not apply as the borrower is not a natural person.My Trust / Corporate Trustees is overseas.
In this case, does he need to send money directly to my Trustee (in which case the National Credit Code will not apply)? In other words: Dad’s account –> send international money to my trustee
Or can he send to my Trustee via my account? Dad’s account –> my account –> send international money to my trustee
Does it make a difference from a lending / credit / license / law’s point of view which method is used as long as it is documented clearly that my corp trustee is the ultimate receiver of the money?
It does matter who the borrower is. If he is lending to you as agent or trustee of the trust you are an individual.
There are also various other legal and tax consequences to doing this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Your dad should seek legal advice.
But if he is lending to a corporate trustee the National Credit Code does not apply as the borrower is not a natural person.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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banks basically don’t want to give borrowers borrowed money without a purpose. Small amounts may be ok, but larger amounts they will want to know what you are going to use the money for and they may want evidence too
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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a person not lending as a business wouldn’t be a coded loan either.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes it is illegal to provide credit to anyone (To an individual for personal purposes) without holding an Australian Credit License or being a Credit Representive of an ACL Holder)
Cheers
Yours in Finance
I don’t think this is the case Richard, (and you have contradicted your earlier statement about loans less than 62 days).
Can you cite any legislationTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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you are borrowing money so you must meet all the usual requirements, including ‘cash out’ restrictions.
business as usual.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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And don’t forget that both members of a couple are unlikely to die at the same time, unless they travel on malaysian airlines perhaps. So it is likely one of the spouses will inherit their spouse’s assets first. This allows for further planning opportunities, though you need to plan ahead as wills cannot be changed once capacity is lost.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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