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There are various issues to be aware of when borrowing money from your company. If not done correctly, the money could be deemed a dividend at the end of the year. Please check with your accountant.
Terryw
Discover Home Loans
Parramatta
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The VFA is only a small organisation with the office holders volunteering their time (i think anyway), so you can’t really expect too much from them.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I agree with Dr X
What about buying your home, lving in it for a while, then renting it out. that way you have the property, claim the deductions, and still have it CGT free for up to 6 years.
Terryw
Discover Home Loans
Parramatta
[email protected]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
Lease options are similar to wraps, but are preferrable to wraps, for me anyway, because:
– less problems with finance
– can be structured in many ways
– can still access equity
etcTerryw
Discover Home Loans
Parramatta
[email protected]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 you stop being a resident of Australia (for tax purposes), then you are taken to have disposed of certain assets. I think that land Australia is exempt, but land outside of Australia isn’t. eg.
If you friend owned land in NZ and was a Australian resident, then ceased to be a resident, then the ATO will want CGT paid on the NZ land value on the date the person ceased to be a reisdent.
Terryw
Discover Home Loans
Parramatta
[email protected]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
only if you do not claim any other home as your PPOR at the same time.
Terryw
Discover Home Loans
Parramatta
[email protected]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
You probably can claim the interest on the land loan if your intention was to build. Better speak to a good accountant.
Terryw
Discover Home Loans
Parramatta
[email protected]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
Sham Trusts
$26.62 ex GSTAlso appears to be a NZ published book.
http://www.goodreturns.co.nz/books/product_info.php?products_id=24Terryw
Discover Home Loans
Parramatta
[email protected]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
Success with Trusts
How to Protect Your Assets with Trusts
Ross HolmesMany people let financial planning slip into their ‘too hard’ basket. Such delays lessen the opportunity of ensuring that your important financial objectives are achieved, and increase the risk of occurrences that could prevent you from achieving your objectives.
Success with Trusts explores and explains the reasons for setting up an asset protection plan that utilises trusts, resulting in financial safety and protection both during your lifetime and for those you wish to pass your successes to. This book gives the keys to successful asset protection planning, giving advice and guidance on how to succeed through identifying risks, planning now, making your asset protection work, making your trust work, and success through recording and regularly updating your objectives.
Format: Paperback, 318 x 216 mm
ISBN: 0 7900 0772 X
Our price: $29.99
Publication date: 26 October 2000http://www.reed.co.nz/products.cfm?view=755&catID=36
same author as above
Terryw
Discover Home Loans
Parramatta
[email protected]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
Successful Trust Management (New Edition)
Asset Protection Planning And the Administration of Trusts
Ross Holmes
http://www.reed.co.nz/title.cfm?titleid=3174Appears to be a NZ published book
Terryw
Discover Home Loans
Parramatta
[email protected]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
Another thing to think about is if they are going to be borrowing money via the trust. It is usually the trustee that has to guarrantee the loan, therefore having just one trustee will mean they are the ones taking the risk in this regard too. Not good risk-wise and not good from a serviceability point of view either.
Terryw
Discover Home Loans
Parramatta
[email protected]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
Richard is wrapping professionally as a business, whereas I only dabbled in a few. It certainly can work, if you are prepared to put in the effort.
I did purchase Steve’s wrap kit and think you probably should buy this if you are serious.
I think the biggest hassle is the quality of the tenants. Some just don’t want to pay occaisionally. Others are always late etc. You have to factor this in and develop strategies to avoid it.
When I did it the market was growing fast. Most of mine had cashed me out within 2 years, and their properties had doubled almost. I therefore missed out on most of this capital gain in return for a relatively small positive cashflow. I had a small profit and could have purchased more properties to replace those ones, but the market had jumped so much, it would have required a much larger deposit to get back into the market – eating up most of the cash released.
Now the market has slowed, so the cashouts should take much longer to occur.
Other things to think about are:
– difficulties in borrowing
– bad publicity
– legally smart wrappees who may take you for a ride.Terryw
Discover Home Loans
Parramatta
[email protected]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
Technically you could have to disclose the whole debt to the lender on each loan application. Even if the loan was split in to two, you each would be responsible for the whole loan if all the other 3 decided to stop paying.
Having a trust etc, would not help in this regard.
From an equity POV, the place is owned by all 4, so if you wanted to use this proeprty as additional security for a new loan, all 4 would have to consent. This would also reduce the equity left over for them to use.
It is a messy situation that many people find themselves in, including myself.
Terryw
Discover Home Loans
Parramatta
[email protected]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
Bris
Try Julia at http://www.bantacs.com.au
Terryw
Discover Home Loans
Parramatta
[email protected]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 have done some wraps, but would not do them again. The returns are too small for the hassle, and you lose out on any capital growth in the long run.
Terryw
Discover Home Loans
Parramatta
[email protected]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
A hybrid trust may be worth looking at.
Terryw
Discover Home Loans
Parramatta
[email protected]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
have a look at http://www.lawcentral.com.au
Terryw
Discover Home Loans
Parramatta
[email protected]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
Bris,
That may be the case, but I would get a second opinion from a good solicitor.
Terryw
Discover Home Loans
Parramatta
[email protected]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
He must be good then. Can you get on a waiting list?
Terryw
Discover Home Loans
North Sydney
[email protected]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
You could possibly offer them a fee for any sucessful applicant.
Terryw
Discover Home Loans
North Sydney
[email protected]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
