Forum Replies Created
hi Mike
There may be different tax implications depending on when your mum actually purchased the property too. It would be best to speak to a a lawyer who specialises in this area.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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It doesn’t really matter whether you are buying residential or commercial – it would make no difference.
At least consider setting up a trust. Talk to another accountant for a different point of view.
Terryw
Discover Home Loans
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
Mano
I am no expert, but have done 3 LOs. What do you want to know?
Terryw
Discover Home Loans
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
Hi RMK
Sounds like a good deal. Are you sure about the finance tho?
$1 mil borrowings on $1.35mil val = 75% LVR
Based on purchase price this would be 122% LVR.
Borrowing on value would be possible, but this LVR is rather high. I am not saying it would be impossible, but just wish to point out it will be rather rare to go this high.
good luck
Terryw
Discover Home Loans
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
LifeX, good luck and let us know how you go. I hope your LVR is less than 80% as it will be much easier.
As for loans being called in, there is a rumour going around that one of the major banks recently called in the loans for a certain big wrapper. He had to refinance about 40 loans in a hurry.
Terryw
Discover Home Loans
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
siacci
The loan will not be larger just because of x-coll, the security base would be larger, but it would not affect the loan, so therefore the commissions won’t change either.
Terryw
Discover Home Loans
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
Randallc
I am not familiar with Rick’s LO style, but if it would normally rent for $330 pw and you want to charge $475, this is $145 pw extra in rent, but you only give a $25 pw credit. So it seems very expensive to me. Plus the option fee and renewal fee.
This may be compensated by the high growth (projected) in the property.
It sounds good from your point of view, but may be hard to find someone to accept this deal.
Terryw
Discover Home Loans
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
Steven
ANZ actually let you go over 95% with LMI capitalised. ie LMI on top of the 95% loan. (I’ve personally done this 5 times).
Terryw
Discover Home Loans
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
Bnr
Sure. There are various ways you can structure it, but check with your solicitor first.
Terryw
Discover Home Loans
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
You can also lodge one yourself at the Landtiles office.
Terryw
Discover Home Loans
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
I have been using a trust for about 3 years now and wouldn’t have it any other way.
There is no problem with getting loans when using a trust – including 95% loans. They do not affect your borrowing capacity as you will still be giving a personal guarrantee for the loan.
I think Lucifier is mixed up by 15% CGT. Is this for super funds (or is it 10%)? Trusts do not pay tax, but pass on the income to the beneficiaries, so the CGT may be as little as Nothing, or even as high as 24% (if on top taxrate after the 50% discount).
Terryw
Discover Home Loans
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 want to wrap it, you probably could get the deposit upfront, but the vendor would have to have $180,000 cash lying around to pay you (ie 30% of $600,000). You could also sell an option for this amount and get the ‘cash’ upfront. Option money is usually non refundable, but finding someone to do this may be hard. Then again, if they are getting a $400,000 discount as you say, then if may be possible.
Terryw
Discover Home Loans
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
Hey, he didn’t tell me about the wife!
Terryw
Discover Home Loans
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
And another one via correspondence at Tribeca:
http://www.tribeca.com.au/content.asp?Document_ID=286Cost is $545 per course or about $2180 all up.
Terryw
Discover Home Loans
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
For those interested, here is the link to the 8 day course (cost $3800).
http://www.ps146.com.auTerryw
Discover Home Loans
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 your properties are in your own name, there would be no point in paying yourself for this. Even if you could deduct the amount (Which I’m sure you can’t), you would have to declare an equal amount as income so they would cancel each other out.
Terryw
Discover Home Loans
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
You have to be careful with information you get over the phone from Govt departments (and banks?). Years ago the was a guy at the tax office who would be telling people they could claim things that they couldn’t-just because he couldn’t be bothered looking it up.
Terryw
Discover Home Loans
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
Dan
With ANZ (and some other lenders) you can add the LMI to the loan so that it does not have to be paid upfront. You still have to pay for, just not upfront.
As to your other questions, brokers get a commission from the lenders, but some pay more than others and this can influence the decision of some brokers. ANZ actually pays slightly less than the other major banks. I kind of like ANZ myself.
Terryw
Discover Home Loans
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 divorced, you could have one main residence each CGT free. But i think it may be better to have one title in each name rather than joint ownership. You should be able to transfer existing ownership to either one of you without stamp duty. But also watch out as he may have claim on any of your future properties (and you on his) if you don’t legally go thru divorce before you buy them. Better to run everything by a solicitor.
Terryw
Discover Home Loans
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 not divorced, becareful. Any future property that you buy may be at risk when/if you legally decide to get divorced.
Terryw
Discover Home Loans
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
