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  • Profile photo of TerrywTerryw
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    @terryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    I think you didn’t understand my previous post as I answered these.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    @terryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    a person not lending as a business wouldn’t be a coded loan either.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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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 legislation

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    Good point Richard. Get around it by just not lending to natural persons buying resi property.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Hi Rosetta

    am a little confused by this sentence “There are other strategies to consider such as triggering a CGT event now, and plan to reduce it” Perhaps you could clarify this for me please

    As an example say you have a house with a $400,000 potential capital gain. You could sell 50% of it to your spouse, meaning a $200,0000 gain is triggered for you. This becomes a $100,000 gain after the 50% discount. You then prepay interest on other loans which potentially wipes out most of the tax, potentially all of it. You then leave the property to your heirs with most of the tax wiped out.

    Keep in mind i just made up the numbers but these are the sorts of strategies you can implement now.

    If you have any capital losses, or assets that have dropped in value, these can be sold in the same year as a gain and cancel out any tax potentially.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    A will incorporating a testamentary discretionary trust, or multiple trusts, will cost about $3k to draw up, but the tax savings should be multiples of this, especially if there are non-resident beneficiaries. It might even help with UK inheritance taxes. My understanding of UK inheritance taxes, which is probably wrong, is that it is based on the value of the estate at probate. But probate will be applied for in Australia probably thus bypassing this. If you do have UK assets you could do one wills, making sure one doesn’t cancel the other, so that the UK probate size will be minimised.
    You should be seeking advice from a lawyer admitted in the UK – there should be some of these in Australia.

    There are other strategies to consider such as triggering a CGT event now, and plan to reduce it. Or you could move into the one with the largest capital gains liability so that when you die the CGT liability on this one will be extinguished and the former main residence’s CGT will be minimal.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    You will need to get a credit licence and once you have that you can start to advertise, approach brokers, etc

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    It depends. Generally the main residence can be sold tax free up to 2 years after death. But not all main residences are CGT free – over 2 hectares, run a business from there etc.

    get some legal advice about minimising taxes. One way may be thru a testamentary discretionary trust.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    Have you got a credit licence?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    why would someone sell something for 60% retail price?
    When you sell property there is generally a 10% deposit and the rest is paid at settlement. And you cannot get access to the deposit generally.

    It sounds like you are wanting people to pay up front, but not get legal title until 2 years later. Don’t think many would be prepared to risk that.

    You could set up some sort of managed investment scheme where the client lends you money and you develop with them taking a mortgage over property. But you would need to own it outright.
    If you are raising money from the public this will be very costly to set up.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    wow you are keen

    best to make you money in business and to hold it in property – perhaps.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    Yes full duty would apply.
    Mortgage discharge and registration
    loan application fees
    conveyancing fees.
    CGT needs to be considered

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    That is $3.6mil per year. If you receive 10% pa return on your capital you will need about $36mil in unencumbered assets.

    To do this you could save $2mil per year, or buy $72mil worth of property and perhaps sell half and use the proceeds to pay off the rest.

    How could you spend $300k per month?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of TerrywTerryw
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    I don’t know about commercial loans with offset accounts but how will you get the cash into the trust?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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Viewing 20 posts - 61 through 80 (of 16,084 total)