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Hi Nat
It may also depend on size – size does matter! Various banks have so called professional packages offering tiered discounts based on the total size of your loan(s).
Terryw
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Yes you can pay cash for your house and then get a mortgage later. But beware of tax implications!!
If you pay cash, then there will be no debt on the property (obviously), if you then get a loan, what is the purpose of the loan? It is not to buy an investment property – as you already have it. It would be to mortgage someting you already own. Therefore the interest would probably not be tax deductible.
However, if the cash came from a LOC, then it is a different story. Drawing money from a LOC is really borrowing money. You new loan will be replacing the existing loan. Therefore it would probably be ok to claim.
Please check this with an accountant.
Terryw
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Mortgage Broker
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I was reading up on bankruptcy the other day, and if someone receives money or assets from a deceased estate while they are bankrupt then these can be taken by the bankruptcy trustee. Death is usually unplanned and so you wouldn’t want someone to die and leave you a lot of money while being bankrupt. Therefore having a will where the money is left to a trust would be most beneificial. Testamentary trusts may be the way to go, just in case.
Terryw
Discover Home Loans
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
If you initially lived in the property and had only one, it may be CGT exempt. If you rented it out first, then you may have to pay CGT on a portion.
Generally CGT would be calculated based on profit less costs such as stamp duty, legals etc. this is then halved and that is added to your other income.
Terryw
Discover Home Loans
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
Gee you were lucky!
Terryw
Discover Home Loans
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
heaps of ways such as:
-adding value to increase equity
-lease optioning your property so you can collect a deposit which can be used for the next one
-wrapping so you get a deposit
-buying something undervalue
-stacking the contract to a higher amount with a rebate at settlement (some people consider this illegal!! – its not).
etcTerryw
Discover Home Loans
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
Forget to add, other than that, what you have written sounds correct.
Terryw
Discover Home Loans
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
Go to http://www.lawcentral.com.au and have a look at the “Buy a House with Friends Agreement” cost is $220.
Terryw
Discover Home Loans
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
And don’t forget stamp duty!
Terryw
Discover Home Loans
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
Just make sure your buyer can settle on the same day as you, or you will be in need of a loan to settle.
Terryw
Discover Home Loans
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
Hi Adam
You would probably be better of paying you PPOR home loan down asap, then reborrow to use as deposits on futher investment properties (or shares etc).
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
On the tax side of things, look out for CGT. you may be able to reduce it a bit by delaying exchange to July 1 so it comes into the new financial year, so you will have another year before you have to pay the tax, and can therefore plan more for it.
Terryw
Discover Home Loans
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
If you have $80K in the bank and a PPOR with a loan against it, you would probably be better to pay this loan down to reduce your ‘bad’ debt. Then you can reborrow this money (making it good debt) and use as deposits for more property.
Terryw
Discover Home Loans
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
I am interested in why you say “(I have seen the errors of much past life..)”. It seems like you have done well!
You seem to have lots of equity, so if you are working you should be able to buy a few more properties – possibly several.
Terryw
Discover Home Loans
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
Clive
Worse case scenario, if you don’t have any ‘poor’ relatives is to set up a company and distribute to that. Companies pay 30% tax. Then money will be stuck in the company, but it could then be loaned or invested etc. (make sure you do htis properly)
Terryw
Discover Home Loans
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
ANZ will do low doc loans virtually anywhere in Aust without mortgage insurance with an LVR up to 65%. (Won’t do for companiens or trusts under low doc tho).
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
Once you run out of deposit money, you need to either save, wait for growth, or both. Or you could get creative…
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
If the student in not working then the course cannot be related to current employment, therefore they could not claim this.
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
You would have to charge market rent. If the ATO audited you, it would be good if you could prove this via clippings from the for rent sections in newspapers, agents letters estimating rent etc. (just ask them to estimate on the low side).
Terryw
Discover Home Loans
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
It is very hard to find wrap friendly finance. So Give the Mortgageman a call and see what he has to offer.
Terryw
Discover Home Loans
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
