Hi Redwing, I’m in Bangkok at the moment.

Terryw
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go to http://www.lawcentral.com.au and look at their legal documents for sale. There is one there called joint property purchasers agreement (or similar)

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I havent heard of many people that wrap commercial ppty, but it could be done, and may be a lucrative market.

There is nothing to stop you offering hgiher LVRs if you are comforatable with the risk.

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A brabd new trust can actually get finance up to 95% easily. If you are looking at low docs, then you would need to prove that you are self employed for 2 years. The trust can be brand new however. You can prove you are self employed by your existing company.

It should also be possible to get 80% LVR on a low doc with a company as trustee.

One more point, you probably should not use your existing company as trustee, as any claim against the trust would effect the company – which could be bad if it is trading.

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If you sold to a new hybrid trust, you could keep the old trust and the loss and keep carrying it forward. Future income from other investments may then be able to be distributed to the old trust to offset the loss.

With a trust, i am not sure if the Capital gain (if any) can be offset from the loss as these are different income streams.Better check this with your accountant (maybe a new one?)

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You possibly could claim it as your PPOR, but only if you have not claimed any other property as your PPOR at the same time. Otherwise, you probably would be up for CGT.

Better run this one by your accountant.

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There are plenty of people out there unable to get finance. Having minor defaults on your CRAA can mean you need a larger deposit (and larger interest rates), many people do not have this. Even if they had the 10% deposit, some low docs have rates higher than a wrap would be. eg GE is nearly 11% pa. most wraps are around 9%, and this is with a lower deposit.

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redwing

I don`t think you can pay yourself. Even if youcould, it would work out the same. If you were using a company or a trust, then you could. Dependning how you do it, it may or may not be worth it from a tax angle. Same with borrowing capacity. If you pay yourself, your company will have less profit, but overall it would be the same between both of you.

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I recently read a book by Brad Sugars who suggests you make your money in business and hold it in property. I tend to agree, it just takes too long to make passive income from property, but it is a nice and stable investment, so good for holding your wealth.

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You may not have to transfer your own home to protect it, there are other ways such as mortgaging it. Your accountant shoukd be able to fill you in.

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