Forum Replies Created
Yes. i have never heard of a resi non recourse lender. Only for larger commercial deals.
You could possibly use one of the super loans…prob not
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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@sydney wrote:Yes, we signed "Exclusive Management Agency Agreement" with the current agent. The vancancy rate in that area is below 2%. I admit our rent is a bit too high in the first place. It's what agent suggested. After few weeks, the agent suggested we drop the price which we did. That's why we feel that the agent is not very effective. With that contract, can we get the new agent to look for tenant at the same time? or should we ask the current agent first?What are the relevant terms of that agreement? We have no way of knowing what you agreed to, you must read your contract.
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 agree Doug.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
RPI – how do you become a surveyor?
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
You will have to see what you agreed to with the original agent. Did you sign a contract of some sort?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
One strategy may be to add dad to title now. Then build and subdivide splitting the blocks on completion. Stamp duty on the way in, but only half of the value at that time. On sub-division it is possible that not stamp will be payable but this must be set up properly up front using a deed of partition.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ideally, it would be good to get one block in your dad's name for the CGT exemption (assuming no other property owned). But being retired it will be difficult for him to qualify for a loan. There will also be stamp duty to transfer and CGT implications for you.
The best time to reduce the stamp duty would be to transfer when the value is lowest – it now or when house demolished (if).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Guys,
Thanks for the recommendation, but I can't take on anymore legal clients for a few weeks. I've sent you an email Nigel.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
1. I wouldn't use the redraw monies as that will create a mixed loan which will lead to loss in tax deductions in the future.
2. not enough info to answer
3. own names probably best – also consider just your name or just her name.
4. not necessary, but stronger asset protection in case the trustee is sued, eg by a tenant. If unit trust is used there are 4 reasons to buy one property per trust. – asset protection, land tax, cgt and smsf, stamp duty too. lending too – 6 reasons now.
5. I am sydney based tax, finance and legal advisor and can refer you to tax agents to get tax done.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
But it could still be worth considering a transfer to a trust for added asset protection and tax reasons. Do the numbers.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If the owners give permission in NSW – whcih they would if you have a sign up on entry for example.
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
Sarema,
It doesn't matter that your loan is closed even if it was still open with redraw available the interest on the withdrawn money wouldn't be deductible if it is used for private purposes.
If your property is in VIC one spouse can buy out the other spouse at full market value without stamp duty. It will probably be CGT free if it was a main residence, depending on a few things.
someone sent me a PM asking me to comment with regards to borrowing and using a trust.
This wouldn't change things because if someone borrows money and 'invests' it in a discretionary trust the interest on the loan would not be deductible because with a discretionary trust there is no fixed entitlements so the person investing the money would possibly not get a return.
The property could be sold to a trustee and the interest could be deductible to the trust – which may not help a great deal if the trust has no other income but still may be worth considering. Stamp duty would apply though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ClaireR wrote:Quick note if you do buy a PPOR (although note the best option by the sounds of it) you have to live in the place for 12 months – 6 months for the first home buyers grant yes but if you leave before the 12 months you have to pay back the government the stamp duty concession pro rata. Learnt the hard way over a year ago and our mortgage broker and financial planner never brought it to our attention.This is a legal issue not something that a mortgage broker or a fin planner would generally advise on.
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
RoyceRolls wrote:Thanks ClaireR,I asked my broker multiple times to confirm it was only 6 months I had to live in the house to get FHBG and he assured me it was.
Thats good to know
Brokers cannot give legal advice!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Tenants would still be able to sue the owners of the property = the trustee of the trust.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
No, the trust shouldn’t invest. It would just be a lender to you.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Freckle wrote:Here comes the pain…
Freckle, but what does it all mean?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Not necessary to set up a trust, but it may be worthwhile depending on your situation.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
RoyceRolls wrote:You are suggesting I buy in my name but loan my deposit from a trust I create? Then allow the trust to buy the property off me after my 6 months is up?
Sorry Terryw, I am new to all of this and am sure ill come across as stupid. I just want to get my strategy right from the start rather then make mistakes early that will cost me later.
Yes to the first part, No to the second.
This goes over the heads of most people….
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
nyc88 wrote:Sorry for my ignorance, but when you say, 'Gift the money to a discretionary trust', how much do you suggest I gift to a discretionary trust? 20-30% of the purchase price of the home? And then borrow 70-80% from the bank, is that how it works?Thank you
I would suggest you look at gifting the whole of your cash to a trust and then for each property borrowing the 20% deposit from the trust and the 80% from a bank.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
