Do you have a mortgage on your home? If so, maybe you should consider selling and paying profit into your home mortgage and then borrowing against that to invest.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Yack

Yes, Just off the top of my head, nearly all low docs have high exit fees – except maybe ANZ (60% LVR tho).

The exit fees on RAMS would have been approx 1.5% of the original loan amount in first 2 years plus $295. eg on a $200,000 loan this would be $3295.

It is best to ask up the broker up front what the fees will be. generally the low the interest rate the higher the exit fees – its a trade off.

Terryw
Discover Home Loans
North Sydney
[email protected]

Have a look at these two sites:
http://www.chrisbatten.com.au
http://www.mintgroup.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

In myst situation, I have just lend money to the trust at the same interest rate that the LOC charges me. So they cancel each other out. ie the trust is paying me $6000 interest on a loan and I am paying $6000 interest to the bank – net positon is nil.

You should draw up a legal contract for this, in case the ATO comes looking.

Also be aware of the asset protection angles as well. eg If you are sued and your trust owes you money, then the creditors can call this loan in.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Andrew
It would work (as in do-able), but you would end up paying tax on your rent, CGT if you ever sell your ‘home’ and stamp duty on the sale. If you were only going to live there for another few years and buy a new house, then it may work out better. Have you done any sums?

I don’t think any accountants would recommend this unless you were at risk of being sued – even then you could buy 99% in spouses name and 1% in your own name.

Terryw
Discover Home Loans
North Sydney
[email protected]

Also be aware that the property has to meet the banks requirements as well as meet valuation. Sometimes, for example, they can only take units in certain buildings if LMI is involved (height restrictions etc).

Terryw
Discover Home Loans
North Sydney
[email protected]

A Trust can have employees, but 12 months old??

You can still distribute any amount to minors, but they must pay tax at a rate of about 66% for amounts over $643.

Terryw
Discover Home Loans
North Sydney
[email protected]

In Australia there are various rules about non residents buying property – it has nothing to do with loans. check out the foregin investment review board.

Going overseas, it depends on the country whether you need citizenship or not.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Wes

I also had 6 loans with ANZ, and think nearly everyone of them had problems, wrong documents arrriving, late settlments etc. And two of my properties did not have the titles transferred to myself at settlement – I only found out about this much later. Anyway, to cut a long story short, I have been reimbursed for extra legal fees and other expenses on most of my ANZ loans. They have very good products, but it is like dealing with the public service. (sorry to all public servants out there – I used to be one).

Terryw
Discover Home Loans
North Sydney
[email protected]

It is a good idea to put down yourself as the contact person for the valuer to gain access. That way they have to ring you, and then you can arrange to meet them on site and provide evidence of comparable sales etc (and bottle of wine?)

Terryw
Discover Home Loans
North Sydney
[email protected]