Hi Mitzvah

A tenancy agreement is just another name for a lease?? The option is a separate contract.

In some states, such as NSW, apparently you can pass all expenses onto a tenant, but if they were to take you to the tribunal, they would be very likely to win and you would be ordered to reimburse all expenses.

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Daniel

The loan only starts at settlement. So if you can on sell before hand you will just be up for the interest on the 10% (or lower) deposit – if you borrowed that.

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My non legal opinion is that agents have a duty of care, and this cannot be contracted out. So if something happens that is their fault, then they could be sued.

I suppose it is like a doctor doing an operation. They may get you to sign all sorts of documents, but if they do not take adequate precautions etc they can be sued.

Better ran this by your solicitor if youare worried?

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Hi Arthur

Richard has given a good reply to your first posts.

Having a company or a trust will not help with making finance easier. Lenders will look at the individuals behind these entities.

If you wish to keep going on forever, then it is possible if you have either income or equity. You may just have to try a few differennt lenders.

Having a business name will make no real difference. A business name is not a structure, but merely a name which companies of individuals can trade under.

Buying renovatons under a company/trust is a good idea for asset protection and taxation reasons and you should probably be looking into this area if you plan to do more than 1.

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I beleive in NSW stamp duty is payable within 3 months of exchange of contracts for wraps.

With Lease options there is no exchange yet, so no stamp duty issues until down the track – as Craig has written.

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Yes it is. But not against income tax, only against capital gains on sale. (But I beleive that in Canberra stamp duty can be claimed.)

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Hi

With a hybrid, the unit holder borrows money from the bank to buy the units (not the house), the trust lets the property be used as security. Then the unit holder can claim the interest on the loan against their other incomes. Losses still cannot be distributed from the trust, but because there is no loan, there will hopefully be no loss.

If there is no CGT, then I would suggest you try and get the value up as high as possible. This will help you borrow more, as well as reduce CGT if you were to ever sell.

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Hi

You should be looking for a loan with low exit fees, and/or portability – so when you sell you can take the loan over to the new property.

probably put up at least a 20% deposit to avoid mortgage insurance. Putting up more will save you a bit in loan stamp duty, but it may be best to keep a bit spare for costs.

I have really done something similar, but i would be looking for an annual profit similar or higher than what you would be getting if you were working – otherwise you will be going backwards.

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