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If you are going to reduce your work hours, permanent part time would be better as lenders view it as more stable. Also most lenders tend to worry about borrowers being too rental reliant – tho I have yet to hear a good definition of this. So it would be best to stay working full time as long as 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
Bid
I have some clients who use Hybrid trusts and the banks have had no problems with the deals at all.
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 think you may find that the agent will not have any ‘buyers’ until just before the 90 cotnract runs 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
I would probably spilt it up and do a number of different things such as shares and properties (using the capital as deposits), but maybe keep 10% for doing more riskying type investing such as share trading, investing in business etc.
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 Dom
What about short term lending secured by caveats. rates are around 5 to 10% per month. I have done this, it is risky and scarey, but good money – $4000 to $8000 per month in your example of $80,000.
Also look at businesses. I have purchased a business returning 100% in year 1. (I’m not going to say what it is).
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 like the get it while you can concept.
It will be easier to qualify for LMI when starting out, so you might be better off stretching your deposits further.
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 think of as wrap as selling a house with a 30 year settlement, and the wrapper giving permission for the purchase to occupy the house while they give you the money in installments.
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 have the serviceability, you could borrow up to 90% of the value of your property and use that money for the business.
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
Yes banks will lend on this deal. They would have to know about it if the vendor was going to take out a second mortgage on the property. They would also want to factor in your repayments on the extra loan to the vendor (probably even if you had only one payment at the end).
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
In NSW you will have to pay land tax on all property held in a trust (and other states?) – ie you don’t have any tax free threshold. So you will be paying extra tax there, but may be saving tax elsewhere. I think the benefits outweigh the negatives.
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
Depending on the price, you may be able to go up to 95% lvr.
check out what one of the mortgage insurers will do at:
http://www.pmigroup.com.au/LocationWizard.aspTerryw
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 are a large number of ways you could structure LOs.
eg charge them $50 pw week extra rent and then give the tenant a discount onmarket value whne they purchase. it could be a dollar value ie double teh extra rent they paid as a discount, or a percentage value discount.
There are other examples in Steve’s book.
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 it too and it is very technical, you probably do not need it!
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
Bid, it is allowable as you are borrowing money to buy income producing units in the hybrid trust. So you can claim the interest on this money against your personal tax return.
see http://www.chrisbatten.com.au for some details.
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
These days everything can be done online (most of the time). If all the boxes are ticked and everything ok, then it will give an instanteous response. But these pre approvals will be subject to verfication of everything (income, etc).
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
Mortgage brokers often come across clients about to be foreclosen upon (ie the owners looking for a way out). If you get in quick you could make an offer to the owner before they are foreclosed on. Once the bank gets hold of the property, they usually go to auction – as their can be no (or less) arguements about them selling it at a fair market price. So as Derek said, they may not always be value for money.
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
FM
A sandwich lease option. Yes, it sounds very good if you could do it. It is a way to get into the market without much money.
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 would start the eviction process asap. Read up on the rules and process for your state (look for the tenants union site – some good info for tenants, but you will also find this useful). Maybe you could get your agent to send them a notice to vacate (do it all properly), this may shock them enough to bring them up to date.
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 could do it, but if you are selling at a price other than market value you would legally be required to pay stamp duty and taxes etc at the market value.
If you get audited you would have to justofy your prices. Maybe you could get some valuations done and ask the valuer to make them as high as 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
Hi
I don’t really understand what you mean by ‘wholesale’. If you do as described how will the origianl owner make any money?
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
