SIS, I agree with Julie. For HECS income calculation it is your assessible income plus any losses from property. So if you negatively gear and get a loss this can’t help you reduce your HECS payment, but can help reduce income tax. That is my understanding anyway-from a few years ago now.

Terryw
Discover Home Loans
North Sydney
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Matt you could be right, But I was under the impression that Steve actually owned 130 properties as the one time.

Terryw
Discover Home Loans
North Sydney
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I did something similar while I was at uni, worked great!

And some of my tenants have subleased the properties. I didn’t care as they were still responsible for the property, and I still got my rent.

Terryw
Discover Home Loans
North Sydney
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I agree with Scott. If it is an investment property, you should be able to claim 100% of the interest.

You may have been confused with interest verse repayment. Each repayment would have a portion of interest and a portion of principle. You statements should show how much the interest component acutally is.

Terryw
Discover Home Loans
North Sydney
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Fullout

Using and/or nominee is different to options.

When you sign a contract and use “and/or nominee” after your name, then you have to option of nominating the purchaser to be someone else other than yourself. So it could be possible to ‘flip’ the property on to someone else without you have to buy the property.

But be wary of stamp duty. Different states have different rules. I beleive it works in Vic – but only if you have a written agreement with someone before you sign the contract. If you don’t then you both could be up for stamp duty!

Terryw
Discover Home Loans
North Sydney
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If your looking at country properties, it will be very difficult to get an 80% lend.

Terryw
Discover Home Loans
North Sydney
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You might as well jsut buy Dale’s book “Trust Magic”, about $99.00. There is also a book by Chris Batten entitled something similar to “Investment Structures 2002”. I have purchased this book, but have lend it to someone. Dales is very basic, but has what you need Chris Batten’s is very techinical. see also http://www.chrisbatten.com.au

BTW you probably only need a hybrid if you want to ‘negative gear’

Terryw
Discover Home Loans
North Sydney
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I agree with MH, I put a few clients into these sorts of loans. They are usually high net worth people who don’t fit the rigid guidelines of the banks and they are after short term finance so they can add value and then sell or refiance asap.

2nd mortgages are more risky as the 1st mortgagee naturally has first access to the security if things go wrong, then the second mortgagee. So if the valuations were a bit high, or prices have dropped or the security property has deteriorated in someway, then the second mortgagee could do their dough.

Terryw
Discover Home Loans
North Sydney
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Seems like your doing well with the capital growth on those properties so why sell – unless you can’t mangage.

Terryw
Discover Home Loans
North Sydney
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I’ve looked into borrowing from Japan. It can be done if your are working there and earning Yen. LVRs are around 70%, and there can be margin calls if exchange rates move suddenly. Also if you stop working and leave the country, you will have to convert the loan to AUD. I looked at NAB, but other Aussie banks should offer similar products. rates are about 2%!

Terryw
Discover Home Loans
North Sydney
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