I know various people wrapping in Sydney over the $300K mark. The highest I have seen was a $450,000 property and from what I hear, it is still going well.

Terryw
Discover Home Loans
North Sydney
[email protected]

I too would think it is better to have 2 separate loans. Makes it more flexible if you want to sell or refinance, can keep them unsecuritized and easier to apportion the interest at tax time.

Terryw
Discover Home Loans
North Sydney
[email protected]

ArthurK

I like LOs better too. They are also less harder to find finance for, and there are less ownership issues. But with your point a) above, depending how you strucutre you LOs, the tenants will be cashing you out just as fast as wraps.

Terryw
Discover Home Loans
North Sydney
[email protected]

fjficm

Thanks for the info. It must be good to have a lawyer in the family!

I think the above would only apply if the trustee was being sued in relation to his/her role as trustee of the trust. If they were being sued personally, then surely all trust assets would be out of reach.

I have also heard that any transaction doen to defeat creditors could be undone by a court. eg you know you will go brankrupt and transfer assets to a trust beforehand (6 months?).

Terryw
Discover Home Loans
North Sydney
[email protected]

Every bank has its problems. But shopping around and splitting your loans between various lenders can stretch your borrowing capacity much further.

Terryw
Discover Home Loans
North Sydney
[email protected]

I can answer 2.

The bank will want to know your income to see if you can service the full limit of the LOC.

Terryw
Discover Home Loans
North Sydney
[email protected]

Sometimes, it may be better to take a year off work if you are getting a large tax bill.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t see there is an easier way for them to do it without you losing out. You could use a lease option and have them pay say $100 pw extra, then have all the extra repayments come off their purchase price – based on market price at the time they want to buy it. eg in two years time it may be worth $350,000, so they could get a $10,400 discount – not much, but maybe they could pay more or you could even offer to match the extra they have paid. ie $20,800 discount on this case.

Terryw
Discover Home Loans
North Sydney
[email protected]

Zedz

You should not hold assets in your company for asset protection reasons (possibly could be sued due to work) and tax reasons (no CGT discount etc). You could probably set up a trust and use the income from your business to gift or distribute to the trust.

Terryw
Discover Home Loans
North Sydney
[email protected]

Bid

I just asked my accountant this (ex ATO). He said it would be considered a disposal of an asset by the husband and he would have to pay CGT based on the market value. If the ATO disagrees with yout valuation the commissioner can issue his own.

So the wife’s cost base would be $350,00 and the husband would have to pay CGT as above.

Depending on the state you are in, I think there are stamp duty concessions for transfers between spouses. I know of one recent situation in NSW, where the husband transferred his half of his house to his spouse who owned the other half. They said tehy did it without stamp duty even (tho it was not due to a divorce).

Terryw
Discover Home Loans
North Sydney
[email protected]