Forum Replies Created
Wrap Attack
I didn’t see a company mentioned in the initial post.
Are you sure that stamp duty can be avoided by just transferring the shares in the company? My understanding is, if the company holds property, then stamp duty must be paid on the value of the property.
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 considered this. It is a way of getting unlimited finance – if you can service the higher repayments.
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 agree that it shouldn’t be a problem. In fact, most lenders will ask to see your Pty Ltd’s tax return when they find out you ‘own’ a company.
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
Just out of interest, Alf, what did he say the benefits of cross collateralising your loans would be? I assumed he meant it would be beneifical to you (and not the bank).
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 more info on the ATO’s position regarding renting from a unit trust, have a look at this tax ruling:
TR 2002/18
Income tax: home loan unit trust arrangement
http://law.ato.gov.au/pdf/tr02-018.pdfTerryw
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
It is a good idea, but
– you must pay market rent to the trust. So after a few years, your trust may have to pay tax on the pofit it is making (which otherwise you would not have)
– you will lose the CGT exemption
– you cannot do this under a unit trust. If done using a discretionary trust, the trust cannot distribute losses so cannot negative gear your icome – only roll over losses or offset against other trust income.On the positve side:
– good idea if you are intending to move elsewhere in the future (ie this is not your final PPOR)
– can possible claim depreciation on furniture etcTerryw
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’ve had two of my loans rejected soley on the basis of the number of enquiries on my CRAA. However, they were both approved after explaining them to the mortgage insurer. You should try to keep the number of enquries to a minimum where possible, but they are not such a bad thing.
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 recently seen someone getting more than 8% yield on a property in a good area of Sydney.
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
GE are a non conforming lender with a 90% loan, no LMI. The last time I looked, the interest rate was over 10% pa. You will have problems getting over 80% I think.
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
There may be exemptions when transferring between spouses.
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
it is possible, you just have to keep coming up with the deposits. If you are positively geared overall, you should be able to keep on going.
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’ve ran some figures and assumed a 5% rental yield on the rentals. It seems she wouldn’t be able to get a ‘normal’ loan based on serviceability. There is a lot of equity available there and she has done well.
Depending on her circumstances, it may pay to consider selling the property with the highest equity and paying down her PPOR loan, reducing her non deductible debt. While she has a small taxable income her CGT would be smaller, but she should seek professional advice on this. Once she does this, she could then borrow again to buy another property. Ineffect, this would be converting non deductible debt into deductible debt.
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
Mel
What do you mean? Did I miss something again??
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 didn’t end up going to the seminar, as I suspected they would cancl a few speakers etc and it would be a waste of time. I bet it was John McGrath that was cancelled?
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
Get one of the mortgage broker magazines such as MPA- Mortgage Professionals Australia and go thru all the ads in there. We use FAST, who only take a flat fee per deal.
One thing you have to watch out for is the safetly of your trails.
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
Originally posted by lifeX:Thanks Mortgage Brokers, you guys rule.
Terry,
What do the banks you mention need to approve a loan when there is money left in the deal. Will they still do 80%LVR of the TOTAL sale price?[sunny]
lifexperience
Hi LifeX.
Sorry for the late reply – been away.
I have put a scenario to these lenders, but never actually done one of these deals. These banks have indicated to me that this scenario would be OK as long as the client can service the loan based on additional repayments for the second mortgage. max 80% LVR on contract of sale price.
ps what is happening – it seems there are many posts in this thread missing.
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
short term loans secured by caveats on this and/or other property is available for about 6% to 10% per month. They can usually settle in about 5 days. These are far from ideal, but you may not have an option.
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
Do you mean the one that involves taxing trusts as companies? If so, this will have virtually no effect on the effectiveness of trusts!
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
30 days is not much time. Beware, banks are slow!!!! Some lenders can settle in as little as 5 days, but others would be pushing to settle on time for a 42 day settlement.
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 put a few clients with Hybrids thru BankWest and they had no problems.
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
