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it is not a good idead to buy in a company name. Go for your own name or a trust. Companies do not get the 50% CGT reduction and your shares are at risk if you are ever sued.
Terryw
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Just wondering, why do you think you have made a mistake?
Terryw
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You certainly would not be able to get 95% loans for student accomodation. This is sepcialised security, and you would probably be limited to 70%.
However, if it was just put up as a standard residential deal, it may get thru. It may depend on how it looks to the valuer.
Terryw
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Guarrantors are generally frowned upon these days – unless the guarrantor is benefitting from the loan. Spouses are often an exception. But not being married, my make it difficult so you may have to go on title to guarrantee his loan.
Whether you can use your existing property as additional security for his loan will depend on how much equity you have.
So what did you buy it for (or what is it worth?) and what is your current loan?
Terryw
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Sell to your own trust. You would still have similar costs though, except agents fees – and you still get to ‘keep’ the house.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Hi
I hadn’t heard of Olly before, so did a google search and found this review:
http://www.landlords.co.nz/article1127.htmlIt sounds like an interesting book by an experienced NZ property investor.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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There are only a few lenders that will take tax deductibility of interest into account. From memory one is Macquarie Bank. The last time I looked at Westpac, I don’t think they did.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Do some thorough research before you do anything. Have a read of Peter Spann’s book(s). The recent one on property is probably the best available. Do develop a plan and follow it (ie don’t get side tracked).
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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You could try GE and Liberty. Both are non conforming and can go to 90% lvr with low docs without mortgage insurance. Rates will be high if low doc – maybe 10% plus.
Terryw
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You would simply apply for loans jointly. However, you would both be responsible for the whole debt, not just your share. So if he/she just stops paying, you would be required to do so.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Cashbonds are just Steve Navra’s term for an annuity. You pay money to a bank and they give you back this money over a period and pay interest. this money can then sometimes be called ‘income’ on you loan application.
eg. you have $100,000. You buy an annuity for this amount over 5 years. The bank will pay you $20,000 per year plus interest, usually it is paid monthly. This extra $22,000 or so received annually is actually mostly your money being returned with a little bit of interest.
However with some banks the whole lot can be claimed as income for loan purposes. Thus increasing borrowing power.
But there are costs for this to happen. Annuities will usually pay a low interest rate – maybe 5%. So if you are getting the money form your LOC and paying 7%, there will be a loss. This may or may not be claimable.
Then there is the setup fee – often up to 3% of the annuity amount.
These days low docs may be a simpler option, as Derek suggested.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yep, there is no easy way to buy many properties quickly unless values are rising quickly and/or you have a large income to save the deposits.
You will find over time, your rents will slowly increase and your wages will rise, so you can save more. Also the values will hopefully go up to enable you use equity as well.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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When you say ‘small’ how small do you mean? Size matters.
I would be extremely weary of any so called guarranteed leases etc. These are essentially meaningless if the company closes down or the person goes bankrupt. Could you re-lease it at similar rents if this happened?
Terryw
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Mortgage Broker
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Click below to email meTerryw | 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
Are you a licenced real estate agent? If not, you may be acting illegally in your state. check first.
Terryw
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Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Tom
Sydney is a big area, what suburbs are you looking at?
Terryw
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We have put many clients into ‘private’ funds. These are often solicitors funds – 7.5% interest rate or private companies etc. Rates less than 12%. generally the LVRs will be 75% or less.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Retire
Technically they will need to know – as the mortgage documents will prohibit wrapping wthout their permission.
But they will be unlikely to find out if you decide not to tell them.
Terryw
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Jaffasoft
What state are you negoitiating in? In Vic and NSW you can just sign the contract as jaffasoft and/or nominee. But you may be up for stamp duty twice if you have no pre existant agreement with your nominee. and it may not work in NSW if the nominee is unrelated. Please talk to a solicitor about this before you sign.
What is the 1% stamp duty they are talking about?
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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What about non traditional lenders such as GE, Liberty, Pepper Home Lonas, Bluestone and HLP and others?
These lenders specialise in helping people with credit problems. BUT you would need at least 10% deposit and the rates can be high. – up to 10.65%
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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why bother wrapping at all? If you wrap you may get short term cashflow, but in the end the wrappees will end up with the property and the capital gains.
In a negative growth market, wraps would work well – for the wrapper that is. This is becasue you would receive a deposit and cashflow, and if the wrappees ened up walking away, you would stil be left with the property. It may have gone down in value, but you would have the deposit and cashflow to offset the ‘loss’ – which wouldn’t really be a loss anyway until you sold.
Terryw
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Mortgage Broker
North Sydney
Click below to email meTerryw | 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
