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Better talk to a solicitor asap!
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
No. The lender would take into account only the annual money received from the annuity. on $100,000 over 5 years, it may be something like $23,000 pa.
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
Rob, Westpac used to lend on income from annuities. (I have never done a loan involving an annuity).
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 also get low docs for NZ property. So I would say your chances are good.
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
1) Yes
2) yes, have to pay CGT even if you reinvest.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
If you friend want to pay more interest send him my way. I can fix him up on a 10% pa interest rate. He will be able to claim a fortune!
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
My understanding is that tax losses cannot actually flow through a trust. Not even a hybrid can distribute losses. The only way around this is for the interest to be claimed personally as the above describes.
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 most aggregators need at least 2 years experience before they will take people on. Maybe Lawfund will be ok??
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
Section 118-145 of the ITAA (1997) says you can claim your main property as your main residence even if it is rented, for a maximum of 6 years.
There is another section of the act which states you can actually have 2 main residences for a period of 6 months to allow for cross over periods.
So you should be able to buy, then sell without CGT if you can do it within 6 months. Please check this with your accountant.
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
It would be possible to onsell. Whether you should do this or not would be up to you. You still would not get the ‘profit’ until the property settles though.
BTW, you may be able to sell now and still claim the 50% CGT discount. The ATO class a sale to occur on exchange of contracts – which you probably did in 2003.
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 there is a free booklet concerning this on the following accountant website:
http://www.bantacs.com.auTerryw
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 you can enter into an option to purchase contract. Find someone else willing to buy and then assign the option to them for a fee. Can save lots of stamp duty by using options.
Have a look in the API magazine. There is a QLD solicitor called Rob Balanda who is selling some books or CDs concerning options.
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
There are low doc loans with higher LVRs – up to 95%. But the interest rates can be high – very high on some. So it is not the ideal loan to get.
Rates can be fixed on most low doc loans. The fixed rates can also be rather high on these.
Are you sure you cannot obtain a ‘normal’ loan? When factoring in rent from the new purchase, you may qualify.
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
If someone had a large enough property base, then if they were only to use a portion of the growth (after it happens), as Jeff has shown, then I cannot see how this could not be viable.
In reality, most people at this level would have a few sources of income (which would also be growing), and would only be drawing equity to supplement their lifestyle. Often only temporarily.
Living off equity would not be suitable long term for someone with only a couple of properties with a highish LVR.
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
Lynn
That may not necessarily be true. A minor can actually enter into a legally enforceable contract in a number of instances. One is when they stand to benefit from the contract. This could be the case with the purchase of property.
Another example: There are many young people employed in fast food restaurants and they are covered by employment contracts.
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
Do a search here as there have been a few lenghty posts already.
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
What about starting out in shares?
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
BTW, there was an article about getting out of contracts in a recent API magazine.
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
It may be enough for your friend to cancel the contract or sale – if that is what he wants. It would depend on the wording of the contract. Really this is an off the plan type purchase (it is a subdivision) so the vendor would likely have covered for delays in the contract.
You friend may have to seek the advice of a better solicitor.
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 Marisa:Hi Terry, do you now use Steve’s strategy, or will you be in the future?
IT would be great to hear from people who are actually using Steve’s strategy for some time.
Regards, M
I haven’t used this strategy exclusively, but have used ‘bits’. I wish I had focused more on Navra’s ideas as I would be better off now.
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
