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Dunno. What sort of investment was it?
Terryw
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From my memory of the Dec class, he was saying (in addition to the above) that as the yields drop you could sell a property to release funds and buy two more properties with higher yields (in a different area probaly) to replace them.
Terryw
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Yes. It is just like buying a unit off the plan.
One of my clients became a millionaire overnight (about a year). He purchased over 10 blocks for $40,000 using small deposits. A year later they were selling for about $180,000 each.
Just bear in mind, if you are going to sell it, you won’t get the deposit for the purchaser, or the profit, until the final settlement.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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You can only get the FHOG once for one proeprty. If there are mulitple units on different titles, then you will only get it on one of the purchases. Your girl friend should be able to get it on one of the others, but you must buy separately to each other.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Mine are all positive geared, except for a land loan. What I do is pay everything from a 100% offset account linked to another IP. I put all rent and income into that account. And I pay interest on the LOC which was used for deposits from this account.
Terryw
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Mortgage Broker
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[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
Try the local papers, and look up the vendor finance association website. They used to have a page for people advertising their services.
Terryw
Discover Home Loans
Mortgage Broker
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[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
You generally need around 5% deposit and around 5% for closing costs such as stamp duty. But it is possible to get 100% loans, and if you are a first home owner, and you are buying a place to live in, then you will get a grant of $7000 and stamp duty exemptions, bring down the costs a lot.
Terryw
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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.mintgroup.com.auTerryw
Discover Home Loans
Mortgage Broker
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 are planning on buying a few properties, then it might be worthwhile setting up a trust to start. Any accountant could set one up, but there are many out there who do not have a clue. Try http://www.gatherumgoss.com for a good accountant who also has a book on trusts for sale.
Terryw
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Mortgage Broker
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[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
Excellent idea Derek!
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Stamp duty would be marginally higher, but CGT wouldn’t be any different if done correctly.
Terryw
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I use a LOC on my PPOR. But I do not deposit incomes etc in there. I use it merely for investment expenses and deposits.
Terryw
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Many investors use trusts, but there are some out there with a fair few properties who only use their personal names. It seems some accountants do not understand trusts at all.
I would keep on doing research on trusts – it takes a long time before the ‘penny drops’.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes, I was suggesting 20% above what you pay for it. But you can vary this as you please. Some people believe you should not be making a profit when onselling a property. But you have to account for costs such as stamp duty and make a profit or it would be pointless.
Terryw
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Sounds good in theory. I have examined the ‘throery’ of writing covered calls, but in practice I have heard that it is hard to make that much money as expected.
Just make sure you get a loan agreement drawn up. This will help you claim the interest and also clearly outline the terms of the borrowings from your dad.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Maybe get a professional in. That way if something happens, their insurance should cover it,.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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OK Richard. They seem so close from here!
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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No.
What is someone sues you for farting in an elevator, and you go bankrupt. Your trust assets will probably be safe.
If you decide to stop paying the trust loan, then the bank will come after it, and then the guarrantor if there is not enough. This is expected, and fair.
Terryw
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[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 am sure they will change, but you can’t sit about worry about things that haven’t happened. Trusts are still an excellent way to hold assets and will probably continue to be.
Terryw
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[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
Hybrid trusts are a mixture of discretionary and unit trusts. They work well because the unit holder can borrow to buy the units in the trust and claim the interest against their own personal income. This effectively allows negative gearing using a trust. This is not normally possible as trusts cannot distribute losses.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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