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then i cannot re loan that and get tax benefits later on when i re buy can i ?
No because there will be no interest.
I got a offset account and put full amount of loan into it but still pay principle….. basically i dont want to pay any $$ to bank in the time between buying next place…….. is there a way to do it ?
If a loan is fully offset there will be no interest to pay, but if you remove the offset the interest will start again and this interest could be deductible if the loan related to the purchase of that property and that property then becomes available for rent.
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
ha ha Richard was right. They were being a bit misleading and deceptive when they said that. perhaps a refinance is worth considering
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
It wouldn’t make sense to use a LOC. The existing loan could be utlised and tax deductibility achieved if done right
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
Nevertheless, offshore companies have managed to adapt to stricter international rules without reducing the volume of f
You don’t know what you are talking about!
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
Thanks Colin
I am not an accountant but since only lawyers can set up trusts that doesn’t matter! I don’t do tax returns 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
I am. If you mean rent where you live and invest elsewhere aka rent vesting
I want to live in places where i don’t want to buy – CBD – so I rent at the moment.
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
Put property in a discretionary trust, live there and sign a lease and pay rent to the trust, run a business from home and the rent becomes a deductible business expense as a bonus. Seek advice from an accountant first, as always.
This is something I usually suggest people avoid doing. Loss on the main residence exemption, land tax in many states – such as NSW where it would cost $8,000 per year for land content valued at $500,000.
It would be better, usually, to own the main residence and rent it out, using the 6 year rule, and rent somewhere yourself where you could sublease part of the property to the company operating the business. You keep the full main residence exemption, for up to 6 years, and still get a deduction for some of the rent.
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
Would the correct way to approach lenders be going with Commbank until we max out (take a $700k loan for an IP), then approach other lenders and banks that are less strict: eg: ING bank, Citigroup, Macquarie (Commonwealth bank is known for having very strict lending policies)
It is probably best to go to a broker who could compare your serviceability across several lenders. I find that CBA is generally more generous than ING for example.
But like Richard said there will be not a huge difference. Generally not enough to make that much of a difference.
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
Generally a full application again as servicing is more stringent.
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
I am not sure what you mean exactly but Company A could lend money to Company B which could buy the property. Company B could buy the property without a loan using Company A’s money – thereby creating a resulting trust. Company A could pay income out to its shareholders who could lend to Company B to buy property.
There are lots of legal and taxation issues to consider.
And this would not prevent Company A from being taxed on its income either – which seems to be a common misunderstanding.
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
They will just be auctioned through various agents. you want find a website listing sheriff sales I’m sure. You also are unlikely to find a bargain.
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
Its possible, but unlikely to be agreed with by the vendor.
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
Yes
If your living expenses are under the HEM index they will
a) not believe you, and
b) bump it up
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
yes
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
Many, if not most, will assess existing debts at a rate higher than you are actually paying too.
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
1. no
2. All owners will need to provide a mortgage. If the mortgage secures a loan a new loan application would be needed. You would need to seek advice on ownership % to satisfy the lender. All owners would be jointly and severally liable for the debt and servicing as one unit
3. decrease
4. heaps
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, Can you also get Terry Waugh’s contact details for me too?
See my signature below!
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
That would result in stamp duty in most instances. You would need to resell about 10% higher to make it worthwhile.
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
Yes thats how you could structure to avoid crossing. I also generally recommend that as the values of the IPs rise the 20% deposit loan be moved over to be secured by the investment property it relates to. But this might mean unmixing the loan first (2nd one in your example) if it had been used for 2 or more properties.
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
This is like insurance in a way. You don’t need to insure your house until you smell smoke, but by then it is too late.
I can think of real life examples x 3
Peter had 2 properties and the LVRs were relatively high. He had a heart attack and his wife left him and lost his job (not necessarily in that order). He needed to sell one property to unlock some cash to live on, but the other property had dropped in value. I think he did sell the first one, but couldn’t settle as the lender said the value of the second one had dropped and he needed more than the proceeds of the sale to reduce the LVR to 80% so they refused to release the mortgage and he couldn’t settle. He went bankrupt after that
Another was a guy who rang me because he had 10 properties and decided to retire and live on the capital gains by selling one every 5 years or so. The trouble was he had already quit his job when he sold the first property and they took the proceeds to pay down the remaining loans so he had nothing to live on. i suggested he go and get a job and then refinance and uncross, but he didn’t like the idea of coming out of retirement.
And the last was similar. An elderly lady had 3 properties mostly paid off and therefore unable to get the pension. She needed to sell one for some unexpected costs and to supplement living expenses as the rents where not enough. But her bank said they would only release the mortgages if all the proceeds was used to reduce the remaining loans on the 2 properties left. so she needed to sell a second property. In the end I think she would have had one paid off property and a bit of cash.
All could have been avoided, but for their crossing of securities.
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
