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There are private type lenders that would look at these deals. Generally finance would be hard.
Terryw
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Why not go for 30 years as the repayments would be lower, and then pay extra off when you can. That way you have a choice.
Terryw
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What about taking advantage of the different tax years in both Aust and NZ.
Your NZ trust could distribute to your Aust trust in late march – just before the end of the year. So the trust would have no income to pay tax on.
Your Aust trust then distributes income to your NZ trust on 02 Apr, just after the new NZ tax year starts, and before the Aust tax year ends.
You would never have to pay tax!
(at least you never used to!)
Terryw
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Are you sure your solicitor is going to be trustee? Does that mean he/she will be guarranteeing your loans? – that would be good!
I think the ‘controlling’ of the trust would refer to who the appointor is as well as the trustees. The appointor usually has the power to change the trustees – in Aussie trusts anyway.
Terryw
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Good point Derek!
Yes, if you get the valuation assigned to the bank (they usually charge another fee) or tell them initially that it is for a loan with XXX Bank, then it maybe fine.
But sometimes the banks/lenders can be hard to deal with. I had one client who had a valuation, but we had to let the bank order another one with the same valuation company as they had a policy of ‘instructing’ the valuers themselves.
Terryw
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I have seen at least 2 people get returns close to that in Sydney within the last 12 months. It is not the area, but the property you should be looking at.
Terryw
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What do you mean by ‘service’?
I have seen someone use a buyers agent that worked out very well.
Terryw
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Why wouyld you sell? Do you have somewhere else to invest, or are you just thinking this one isn’t performing?
I am like Derek, and like to hold on for the long term. But if this one is not performing, then it may be better to sell and invest elsewhere. But first, are you sure it is not performing?
Terryw
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Brizza
St George will do small places – from memory, anything over 25 sqm.
I have heard of someone with a 12 sqm ‘place’ in Sydney. The person paid cash for it 10 years ago and it hasn’t gone up and they couldn’t find a buyer.
Terryw
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Generally, I’ve heard that foreigners cannot purchase property over there unless an apartment and there are various regulations such as restrictions on the number of foreign ownership in the one complex etc. If purchasing through a company will need to have a Thai partner with at least 51% share ownership.
There is a good website at http://www.thaivisa.com/ with lots of info on the various Thai legal requirements and an active discussion forum.
Terryw
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It is generally much harder to finance serviced apartment, even more so if in a country area and if under 50 sqm. This can limit gains as your resale market is restricted.
Terryw
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You don’t say how much your house is worth, so we can’t tell if you actually have any equity.
Lets say it is worth $300,000. Generally (if you have enough income) 80% of the value is able to be borrowed.
80% x $300,000 = $240,000But you already have $178,000 in loans secured against this property, so your accessible equity is $240,000 – $178,000 = $62,000.
You can ‘access’ this by increasing your loan, or taking out another loan – a split.
This can then be used for deposit money, buying shares, gambling etc.
Terryw
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You will only have to prove it if you are audited – which would be rare.
However, it is best to plan for these things. Having a bank valuation, one done by a licenced valuer, probably should be enough. Do you have an actual copy of the valuation?
Terryw
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I should add, that you would be able to get finance, but just may have to pay a slightly higher interest rate – around 8.85% with one non conforming lender (HLP) at 80% LVR.
Terryw
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I am inclined to agree. If he is talking about cashflow positive proeprty in whoop whoop with a population of 500, then I can’t see how these can be good long term investments.
Good high growth potenital cashflow positive stuff is another matter.
Terryw
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tax would be payable on any profit
Terryw
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Yep, I think the only way to get around it would be never to buy the property.
Terryw
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I would suggest you look at fully paying off your PPOR – paying off non-deductible debt. Then you can reborrow against this property to use as deposits with the remainder of the money (if any).
Maybe also look at setting up trusts and gifting the money to the trust. Maybe have one for you and one for the spouse as this could increase borrowing capacity down the track.
Terryw
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Trusts can negative gear only if they have other income. losses have to be quarrantined in the trust, so these cannot be offset against other personal income. A Hybrid trust may be a way around this.
I don’t really think renting is a waste of money as long as you are investing the difference (renting is usually much cheaper than paying off a home loan on the same place).
Interest free loans are still not available yet!
Terryw
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Yes, using a DT will help – as you will not be ‘owner’ of the assets.
Terryw
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