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Cruiser
Yes, discretionary trusts cannot distribute losses. Sounds like you should have used a Hybrid Discretionary Trust.
For full doc loans, I can’t think of a lender that will not lend to trusts.
Terryw
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Crusier
probably half of my clients use trusts, and I rarely encounter any problems with lenders.
And trusts can claim depreciation, just like an individual. The only difference is losses cannot be distributed.
Terryw
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Originally posted by foundation:Originally posted by Qlds007:You sign the contract in your name and receive a letter dated prior to the actual contract date with permission from the eventual owner appointing you to sign on their behalf.
Would this not constitute fraudulent evasion of duty?[worried]
Foundation
It would depend when the letter was written. I am sure Richard was talking about a prior arrangement.
Terryw
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Landt
Its the same as signing in your own name, except that you can nomination someone/entity before settlement if you want to.
Terryw
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Things to consider:
– look at using a discretionary trust, so income can be attributed to your wife, if and when you require
-Is your wife working? If not how will she get finance? In some situations spouses can go on the loan without being on the title.
-Land tax is progressive. So the more you own, the more % you will have to pay.
– If you get a loan in your wife’s name and you lend her money from your loan, you will need a written loan agreement so she can claim the interest. You may be able to get away without one, but just in case….
– the taxable income would probably be minimal in the first few years, CGT may be a larger problem if you intend to sell later.Terryw
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What state are you in?
You could also get the vendor to cancell their contract with you and issue a new one to the new purchaser with you collecting a fee from them. But this may be illegal, and the vendor would not do it for free.
Terryw
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If your living at home, and wish to buy a rental property firstly, you will be able to include potential rent as well – boosting how much you can borrow.
Terryw
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Yes it is theoretically possible here, but nobody is going to lend your on a second mortgage over 80% LVR – except maybe a desparate vendor.
BTW, commercial second mortgages up to 80-85% maybe possible with rates from 12-26%.
Terryw
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Who cares what an agent thinks!
Terryw
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Usually rates notices are only required for security proeprties. And they will be valued.
Values on the other proeprties are only to be estimated, it will generally not effect your application, but it better to estimate on the high side as it makes your position look better.
Terryw
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Scamsters!
– High upfront fees
– Very high interest rate (unless she has credit problems)
– And she won’t be able to claim the capitalised interest, so the whole thing would be pointless, and costly.Terryw
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That’s why it is not a good idea (from a financing perspective) to get loans in joint names. It adds to your risk (by exposing both of you instead of one) and severly hinders your borrowing capacity.
Not only are you repsonisble for the whole debt, not just your share, but when going for subsequent loans, only half the rent will be attributed to you application. ie half the rental income, but fill debt will be included in your assets and liablities.
One solution is not not tell them. Just state your share. Usually they will not ask, and not pick it up. You would not be lying either.
Another solution is to buy properties in alternate names – maybe using trusts.
Terryw
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I have also heard they are slow, so slow, in fact, that it is hard to settle on a purchase within the alloted time frames,
Terryw
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Use cash, buy a cheap one.
Financing a vehicle is a bad idea if you want to keep purchasing properties.
Terryw
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Gameone
its not as simple as that. In certain states (such as NSW and QLD) you will have to pay stamp duty again if you nominate a non related party. In VIC you can only avoid double stamp duty if you have a written agreement with your nominee before you sign the contract.
Terryw
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Pinchy
I think its too late now!
Terryw
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Whats a rooming house? A house where the rooms are rented separately?
I rented a room in a house like this while at uni, back then I didn’t know anything about real estate, but now when i think of it, the owner would have been making a fortune.
Some potential problems are sharing bills, electricity, phone (every one has mobiles these days so you don’t really need one), and cleaning. Maybe you can factor these into the rent, and get a cleaner in once a week?
Terryw
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Some people do not have a company as trustee. Having a company adds extra protection, but with added costs.
The fees quoted seem cheap for setup going through an accountant.
have a look at cleardocs.com.au where you can set your own trust up for $137. Your accountant would probably be getting the trust from a similar place to this.
Terryw
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With lots of equity there, why sell? Unless the proerties are not performing.
Terryw
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Is there any security?
Terryw
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