I have never ever seen a non-recourse loan. I have only heard about them from Henry Kaye.

I suppose if you are talking baout huge loans, there is not much point in personal guarrantees.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

It is a personal decision. Some people just feel more comfortable paying down debt – including Steve I beleive.
I, myself, prefer IO loans like Rob. You then have the option of paying more if and when you chose.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

check out http://www.metropole.com.au for a group that project manages these sorts of things for you.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

I agree with TMA!

Get a pre approval first, this lets you know you can really afford it and speeds things up.

And use a solicitor. check with them before signing anything.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Nehal

Is it good that you are planning ahead!?

To get a loan you will generally need a deposit and will certainly need a job.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Australian and USA would have a double tax agreement, so there would not be double taxing. Any income tax paid over there would be taken into account.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Trusts are worth looking at in my opinion. But don’t overkill. I have seen people spend thousands on elaborate structures to save tax, when they don’t make any money!.

A trust can cost as little as $137 to set up and nothing to run. If you are just buying properties, the tax return is easy, and you could do it yourself if necessary.

Trusts can be used for negative gearing. A hyrbid trust is used with units owned by the high income earner who then borrows to buy these units. The money isn’t gifted to the trust (otherwise you couldn’t claim the interest). These can cause more problems when borrowing if you have a company as trustee. Due to the fact the house will be in the company name, but the loan must be in the individual’s name.

There are many different types of trust such as service trusts, testamentary trusts, superannuation trusts etc. But the two main ones are unit and Discretionary. Unit trusts are not safe when it comes to asset protection as the units are owned and can therefore be at risk. Hybrid trusts are therefore not as safe as discretionay.

SG, get another opinion from a different accountant. Most do not understand trusts.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

I get these figs:
After 5 years, ppty worth $161,051
less purchase costs and selling cost = $51,220 capital gain

After CGT, this becomes a profit of $38,800.

The property would probably be cashflow neutral but negatively geared, so maybe a bit of tax would have been saved during this time as well. If rents increased with inflation, maybe a small profit would emerge.

So for a cash outlay of $nil, the person made $38,800 after tax in 5 years.

Not bad, but SIS made this in 6 months!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Well done!

So have you finished the Advanced diploma now?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

also consider http://www.gatherumgoss.com

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]