Julian

If the long is for investment or business purposes it is not regulated by the UCCC. ANd as far as I am aware, there is not itnerest rate ceiling imposed. You know the money is for investment by getting the customer to sign a declaration as to the purpose of the funds.

Terryw
Discover Home Loans
North Sydney
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Rob

I have done a few loans thru bankwest for Hybrid trusts. I have also used one other lender – can’t remember who at the moment. Tonto will also do them, and many other I imagine.

Most lenders will also lend to the trustee. I have a few of my loans in my name without mentioning my trust.

Terryw
Discover Home Loans
North Sydney
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Liz

yes brokers can get access through Baycorp (they also offer access of many other things, title searchs, ASIC director searches etc). But everytime you check, there will be another entry which doesn’t really look too good on the poor clients record. So it is better to get them to order their own.

Terryw
Discover Home Loans
North Sydney
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Bigstrides

Are talking about a sandwich type wrap. ie you are the wrappe and then rent the property out?

I have thought about this and think it would be a good way to get unlimited low deposit finance. The only problem would be servicing the loans. It would be pretty hard for a proeprty to be postively geared on the higher interest rates, but is possible.

Another way around it is rewrapping it, or even using lease options and buying an option and then selling one at a higher rate with a higher rent.

Trusts are generally better than companies as they get the capital gains discounts and are more flexible. But you d not pay CGT on wraps, so it may not matter so much. Talk to an accountant that understand wraps.

Terryw
Discover Home Loans
North Sydney
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I suggest you talk to a professional about this.

Your company will still be required to pay tax on the profit it makes, transferring it to another company and then investing it will not help you avoid this.

If you own shares in a company, it is better to own them through a trust as it is more flexible in regards to tax, and safer. What if you are sued for some reason? Your share would be safer if held like this.

If buying property, then using a trust would be a better idea than company. If a partnership, then a unit trust would be good, with your units owned by your discretionary trust. Then you could distribute the profits as you please – to yourself, or a company you control making a max of 30% tax.

Most trusts will be setup to include future parters, children, grandchildren, relatives etc so your girlfriend will be included as a beneficary already – if a defacto.

Terryw
Discover Home Loans
North Sydney
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None usually. However some banks may want you to get independent legal advice, which means you will ahve to go to a solicitor and listen to them explain you will be personally liable for any debt you guarrantee. approx $50 – $150.

Some banks also want to charge you an extra legal fee for their legal people to review your trust deed. approx $150.

However, I have had many loans ATF my trusts (discretionary) and have never been charged any extra. I also have clients with Hybrids and beleive that they have not been charged any extra either.

Terryw
Discover Home Loans
North Sydney
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Oztexs

The trouble with that is you would be paying a lot of tax on the rent from your old home, and paying rent with after tax money, which would be painful. Why don’t you keep you loan on this so the interest offsets the rent abit, and then you could use it as deposit on your new home later on. Maybe a 100% offset account would be useful.

Terryw
Discover Home Loans
North Sydney
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Someone asked a similar question recently. You would have to pay CGT and stamp duty at market value.

Don’t forget in the above eg, you would get 50% discount on the capital gain, so only $100,000 would be added to you income. you would pay around $50,000 tax max.

But there are still ways to decrease the tax you pay on the capital gain -eg pre pay interest on one or more loans in the same year.

This is another reason to buy in a trust structure – because you could then pass the gain onto the person with the lowest income.

Terryw
Discover Home Loans
North Sydney
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Generally it is not a good idea to buy appreciating assets in a company.

Have a look into trusts as these are much more flexible.

Terryw
Discover Home Loans
North Sydney
[email protected]

Aussie Partner? That changes things.

Terryw
Discover Home Loans
North Sydney
[email protected]