Kay

You’re friend might be american? Rolling over of CGT is not allowable in Australia. Or maybe they were talking about selling the PPOR?

Terryw
Discover Home Loans
North Sydney
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Kay

i agree with MH. sometimes bank valuations also come in higher. I had a client that purchased an established property and the bank valuation came in 20% higher than what they paid for it.

However, there is one lender that I know of that specifically orders a fire sale valutation to be done. This is a specialsied lender tho.

Terryw
Discover Home Loans
North Sydney
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Hi Akyboy

I have a client that has become a millionaire ‘overnight’ by doing something similar. Buy land with a deposit bond or a negotiated small deposit and then sit back and wait. This guys land has more than doubled in about 12 months-and he had many blocks.

Are you looking at an area near the coast? it seems anywhere on the coast is booming (but this doesn’t mean it will continue to).

At or near settlement you could sell a few blocks and or settle using loans based on valuation. if it has grown in price you could even get 100% finance.

In NSW I think stamp duty is payable within 3 months of exchange of contracts.

If you sold, the ATO treats a sale to have occurred when contracts are exchanged, so if you have a 12 months to settlement you may get the 50% discount on CGT.

Terryw
Discover Home Loans
North Sydney
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Adam

the bank will want to see the trust deed to make sure the trust is allowed to borrow etc. But since you will be guarranteeing the loan, you could apply in your name first-if you qualify the trust will. But you will have to submit another applicaiton later in the company/trust name.

Terryw
Discover Home Loans
North Sydney
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two of my clients have recently reduced their rents to attract customers (in Sydney), it does seem that there has been a down turn in certain areas.

I got a good tip from Michael yardley’s newsletter. That is if you want to increase the rent by $10 per week, write a letter to the tenant saying rent will increase by $20, unless they have any objections. If they object, make it $10. They fell like they got a discount and are happy, and you get your rental increase. If they don;t object, you’ve got the full $20 increase.

Terryw
Discover Home Loans
North Sydney
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Hi
These days lenders don’t like letting anyone guarrantee a loan unless they are on title. A better way of doing it would be for a parent or someone to use a LOC and lend you the money.

Another strategy, if you don;t have much money you could try and lease option a property form someone and then on lease option it at a higher rent with a higher option fee. ie a sandwich lease option. easier said than done tho!

Terryw
Discover Home Loans
North Sydney
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Steven

i give up!

Terryw
Discover Home Loans
North Sydney
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ACTandy

Yes I am a mortgage broker, but I do not know anything about borrowing to invest in Property trusts. I assume it would be similar to borrowing for shares or a managed fund. The security is the shares themselves, so it would be just like a margin loan. probably a max of around 60% lend.

Terryw
Discover Home Loans
North Sydney
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Deborah,

I’m not sure. You are directing all of your income to the home loan, and then borrowing from a LOC to pay your interest bill. If you do not pay the LOC interest bill each month, then it would be capitalising of interest-which is what the court case is about. if you do pay your LOC interest every month, then there would be no point in using a LOC as you could just be paying the interest on the loan directly.

Does this make sense?

Terryw
Discover Home Loans
North Sydney
[email protected]

If you are going to market tot he public, you will need ASIC approval and must have a prospectus-costly.

Terryw
Discover Home Loans
North Sydney
[email protected]