There are plenty of shonky and hopeless brokers out there! I see them at training sessions all the time. Some don’t know the first thing about loans or property or investing. []

There are also a few building societies that refuse to deal with brokers for various reasons.[]

Overall I think you are better off in dealing witha broker[], as they have access to so many different lenders,

Terryw
Discover Home Loans
North Sydney
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Good example Mortgage Hunter.

And many people like to use the strategy, buy move in and then move out and rent an equivilent property. It would be cheaper to rent, and you would also gain the benefits of negative gearing without paying CGT.

Terryw
Discover Home Loans
North Sydney
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I wouldn’t think so, as losses cannot be distributed from a trust.

Terryw
Discover Home Loans
North Sydney
[email protected]

Bear

The six year rule is that you can move out of your PPOR and rent it out and if you sell within 6 years of last living in it, and if you have no other PPOR, then it will be CGT free.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi again

An asset loan is one where the lender lends you money based on the value of the property only. No income is required to be listed. There are not many lenders that will do this, but one, RAMS, will lend up to 65% of the value. So in your case you could borrow 45% from your mum and the rest from the bank.

There are location restrictions as well, so it may not work in all areas.

Terryw
Discover Home Loans
North Sydney
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Hi again. You should buy “Trust Magic” by Dale Gatherum Goss if you haven’t already got it.

Some people have asked me about my statement above saying it should only cost about $60 per year for accounting-saying it was way too cheap. Many accountants charge a fee per property, I think mine was around $80 actually. So if you have 10 properties you would pay $800 plus another $80 for your personal tax return and another $80 for the trust tax return. You would be paying for the property tax schedules anyway, so having them held in a trust only means another tax return for the trust with minimal extra work. So really you are not paying that much extra.

Terryw
Discover Home Loans
North Sydney
[email protected]

Yes this would be a good idea, but you may need a Real Estate licence.

I know one real estate agent that runs a lease option program for people. He kind of acts like a buyers agent, finds property, tenant, and does the management etc.

There ws also a real estate agent near Yass (canberra area), he used to advertise sometimes in API magazine. He was advertising positve cashflow, or high yielding properties.

Terryw
Discover Home Loans
North Sydney
[email protected]

Antara

Where do you live? I am asking because you maybe able to get a place wrapped to you for something similar to what you are paying in rent. Maybe your mum could lend the some money for a deposit?

or

You and your mum could go in together and purchase an investment property or two. You could use part of mum’s money as a deposit and borrow the rest using a asset loan (eg).

or

Maybe your mum could buy something and you could rent it? (keeping the profits in the family).

Just some ideas

Terryw
Discover Home Loans
North Sydney
[email protected]

This strategy was very good a few years ago. Some people became millionaires over night. I think things have changed now, and it could be a very dangerous strategy at this point of time.

In my job as a mortgage broker, I have seen a few disasters. One client purchased off the plan 2 years ago and when it came time to settle recently, the place had actually dropped slightly in price. The person only earned a small income and could not qualify for a loan. She wrote to the developer asking to be let out of the contract, to which she was told settle of be sued. She used a deposit bond for the deposit, so will probably be sued for the 10% deposit (at least).

On the other hand, one of my clients has made a few million $ within a year but buying off the plan.

Just be very careful and have back up plans.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t know of any free ones, but have one called Home Loan Analyser Delux which does what you need and costs about $60.

Terryw
Discover Home Loans
North Sydney
[email protected]