James

I suppose one of the biggest advantages is, if your family composition changes (eg wife, kids come along), then they will usually be beneficiaries of your trust. The deed is generally vague and lists yourself, and any spouse, children etc.

Another advantage is a company can also be a beneficiary. So if you make soem huge gains and would pay more than 30% tax by distributing it to yourself, then you could setup a company and distribute to that company which would pay 30% tax.

So you have great flexibility with Trusts.

I haven’t got a hybrid, but owuld imagine you can apply for a variation in your tax.

Terryw
Discover Home Loans
North Sydney
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If you are selling your IP, then it is probably better to wait for it to be sold to access the money, otherwise it would get complicated.

BTW, you many not have to pay CGT at all, check with a good accountant.

Terryw
Discover Home Loans
North Sydney
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Don’t forget there are two mortgage insurers, so rates will differ. Also some banks add a little margin on for themselves, so rates may vary between banks. However you coud use the above PMI calculator as a guide.

Terryw
Discover Home Loans
North Sydney
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I haven’t read all this post, but would like to say Chritians do not have a monopoly on morality.

Being wealthy is not a bad thing. It depends on what you do with the wealth.

Terryw
Discover Home Loans
North Sydney
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Did you see that property investor on the front page of the Australian? She was pictured standing next to her mercedes and was quoted as owning 22 properties.

She is crazy. Going public like that will only cause problems. imagine if her tenants see her. they will think she is rich and maybe decide not to pay the rent. friends will see her and get jealous. The ATO will see her and maybe look into her earnings. She may even become a target for ‘baddies’. It is not very good to go public like that!

What do others think?

Terryw
Discover Home Loans
North Sydney
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If your IP appreciates to $200,000, you cannot borrow $200,000 against it, but only 80 to 90%.

There is nothing stopping you puttting htis extra money into your home loan. However the interest on this portion would be be claimable as it relates to personal expenses.

You could use this money as deposit on another IP, but only the interest portion would be deductible.

Terryw
Discover Home Loans
North Sydney
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Sorry, the correct address is http://www.gatherumgoss.com/

This book, and another, can be found under shopping on
http://www.gatherumgoss.com/shopping.htm

Terryw
Discover Home Loans
North Sydney
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I have used a buers agent in the past. They can save you a lot of work, but you have to pay for the privilage of course.

An agent will do anything possible to sell a proeprty quick, and that would probably include letting any buyers agents that they know about the property as soon as listed. (They would also probably lie to their own grandmothers if they were in the market for a house.)

Terryw
Discover Home Loans
North Sydney
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What State they are in doesn’t matter.

If it is an investment property, then probably they will have to pay CGT. Also agents fees, legals etc

Terryw
Discover Home Loans
North Sydney
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you’ll be paying for it either way.

eg you use mum’s house as additional security to the new IP and borrow 100% of the new IP.

or

You take 20% from the LOC and then get an 80% loan, you loan on the IP would be smaller, but you would also be paying interest on the 20% deposit from the LOC. So all up you have still borrowed 100% of the IP.

Personally I beleive the second method is more flexible as it leaves the securities as un-crossed.

Terryw
Discover Home Loans
North Sydney
[email protected]