Forum Replies Created
Would your loan contract with your wife be enforceable in a court? Possibly it would, even if it was not written. if so, tehn you may be ok.
I would myself treat it as a loan. One loan repaid with another, should be OK – but you never know how the ATO will treat it if audited.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Stacking the contract to get more finance may be fraud. Avoid this. Stacking the contract and paying cash for the property isn’t.
Terryw
Discover Home Loans
North Sydney
[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
I personally have found network marketing a waste of time and money. The products are usually way overpriced in order to allow commissions to be payable. Why pay $15 for some shampoo when you can pay $5 in the supermarket.
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
Dematio
Be careful in the order of setting up your trust. The trustee needs to be in existance before the trust is setup. Therefore the company would have to be setup first.
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
Xenia
That is a legitimate problem. The only way around it is not to tie all your equity up in lease options. keep some buy and holds as well.
You will also probaably find that a small portion of the tenants leave the properties within the first year. So that could give you some room for equity extraction.
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
Seems like they have cross collateralised your loans again even tho you have separate mortgages. This should be avoided as it will slow you down. You will probably not get more than 80% LVR for the boarding house, and most would probably class it as commercial. You could get 90% LVRs on the refinances if you have the borrowing capacity, but you will have to pay LMI. Maybe you should talk to a broker as there may be other lenders out there who could lend you more, and the broker can make sure the loans are not crossed in any way.
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
POAs differ from state to state. So you had better consult a solicitor or go to http://www.lawcentral.com.au. Me and my wife have enduring power of attorneys for each other, and I have bought a few properties when my wife was overseas (she still doesn’t know about them
!).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
I suggest you write to your bank and ask for a payout figure for your loan as you will be refinancing. Tell them the reason, and see what they come back with.
Sometimes when you ring up, you just get the wrong person who doesn’t give a toss if you stay or go.
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
I am having troubles accessing my work email in Japan, could you please email me on [email protected]
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 be actually increasing your risk by buying property jointly. What happens if the other person simply refuses to pay and walks out?
If you are sure about doing it together, go a written agreement drawn up covering things such as who pays what, what happens if one wants out and the other doesn’t etc.
You could use a unit trust with your units held individually or owns by a discretionary trust. This will had to the cost a bit. But may be worth it if you are going to do more than one property.
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
The problem with caveats, is the owner will have to consent to yours and then to the person that buys the option from you. This may be difficult to negotiate.
Terryw
Discover Home Loans
North Sydney
[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
They could always do a search to see if you owned property in your name, then check this to see if there is a mortgage. But this would be time consuming and costly, they would have to also search each state separately.
Terryw
Discover Home Loans
North Sydney
[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
I have spoken to a few good accountants about this and have received conflicting advice. I can point you in the direction of one in Sydney who would probably say it is deductible. pls PM me if needed.
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
Originally posted by TMA:Originally posted by Terryw:It is not lying on the contract. Stacking the contract may be a way to get a higher valuation after settlement.
Can you define “stacking”?
I take it as putting a misleading amount on the contract. Misleading referring to NOT the true purchase price. How does this differ from lying? I believe this is also prohibited in legislation hence the advantageous purchase requirements most lenders have when a contract is below market price. I am sure this would also work the other way.
Can you outline the process you mentioned above please? How does this “stacking” etc generate a useable income for serviceability and not lose you thousands in additional stamp duty and tax?
I am unaware of any legislation covering this.
Stacking the contract up to a higher amount would result in a higher stamp duty amount payable. It would not help serviceability, but may help you get a subsequent valuation higher and this could result in less money needed in the deal.
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
Yes Sorry TMA. Didn’t mean to sound like that. I will let Dev tell you where he puts his money.
let me rephrase the other bit. Bankwest will still not lend on valution if it is higher, but for mortgage insurance purposes they can base this on valuation if it is higher than purchase price.
eg. buy a property for $80,000 that values at $100,000. They can lend $76,000 (95% of $80,000) without mortgage insurance.
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
I think lease options would be the same as normal rentals. The landlord should have their own insurance which would cover this. You are just renting with the option to purchase at a later date.
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
I agree with TMA. If you are using a loan soley for investments, one account should be OK. The interest may have to be apportioned over a few proeprties, but even if you stuff this up, the overall figure would be the same and this would make no difference to the amount of tax payable.
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 can only get the profit if you sell. If you have equity and increase the loan, the extra portion could be paid into the home loan part, but this would not result in any tax savings. Tax deductibility is determined by use of the funds borrowed.
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
Just try a different lender.
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
try http://www.gatherumgoss.com for Melb
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
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