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Good point taxman. I agree-you can have the best of both worlds.
Luckyone. I just posted about this in another question. There is a Tax Determination available at http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD959/NAT/ATO/00001 (TD 95/9).
It appears a you must live in the property first before you can claim it as your PPOR and then have up to 6 years where you can rent it out, and still claim it as your PPOR. I beleive you can still claim interest etc on the property even though you will not pay any CGT.Terryw
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Blackhole.
You can still rent out your PPOR for up to 6 years per time and pay no CGT. see the example in this Tax Determination:TD 95/9
http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD959/NAT/ATO/00001Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I mentioned this to a real estate agent friend of mine in NSW. He was of the opinion that no licencing would be necessary to act as a spotter or a buyers agent. It is best to check with the Dept of Fair Trading to be sure. Just ring them up.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I know the people at Eurofinance, we use them for finance all the time. Euro use these funds to lend out for their asset lend product which is 9.5% pa interest.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I am not an accountant, but I beleive a time period is not stated in legislation and you should be able to claim a house as your PPOR if you live in it for just one day. But you can only have one PPOR per family (or 2 for a short period to allow moving). You can also be absent from your PPOR for a period of up to 6 years, rent it out and pay no CGT. Check this with a GOOD accountant.
Terryw
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North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I am not an accountant, but I beleive a time period is not stated in legislation and you should be able to claim a house as your PPOR if you live in it for just one day. But you can only have one PPOR per family (or 2 for a short period to allow moving). You can also be absent from your PPOR for a period of up to 6 years, rent it out and pay no CGT. Check this with a GOOD accountant.
Terryw
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North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
David
I agree with Melanie, but would start a new company to act as trustee, not the one your are using for business. It adds more protection in case the trustee is sued.
Bill
I had heard the high court appeal was comming up sson, but didn’t know the ATO had lost, (are you sure-it would have been widely publicised I am sure?)Terryw
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Get some proper advice, but you probably should not be buying property in a company-unless it is a company as trustee for a trust.
Terryw
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
How big is it? (the studio that is[
])Many lenders will accept about 40 sq meters, but anyting lower gets hard. The smallest that I have heard about is square metres.
Terryw
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From a borrowing perspective, it may be wise to only have one director of your company as this will limit your guarrantee. (Directors must guarrantee loans in the company name.)
Terryw
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Carlo
With most low doc loans you will need 20% commission. Some require you to be self employed. many also have more restrictions such as sqeaky clean credit history, and there are location restrictions (no inner city or country).
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
I have jsut set up a discussion group so we can all discuss investing in Japan. There is a home page at:
http://groups.yahoo.com/group/Japan_property/Or you can subscribe by sending a blank email to
[email protected]Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes, you can possibly get a loan easily, but you will probably have to pay a higher rate ass you will be deemed a higher risk.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As Hilary said I beleive buyers agents (and spoters) must be licenced real estate agents or hold the real estate sale certificate and be working under a licenced agent (in NSW anyway). Please check with the Dept of Fair trading in your state, as you could be breaking the law if you are accepting fees for finding/introducing property.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
you could also possibly borrow the 20% deposit from someone. But you would still need to show your income to service.
If you are a part time real estate agent, could you also act ass a buyers agent finding postive cashflow property for all these people that can’t find them. ie introduce this property to someone for a fee.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Fudge
Mortgage insurers will have to approve all loans over 80%. And they have area restictions, ie only capital cities and major regioanl centres will be accepted. Your $50,000 property is probably not in one of these areas (send me some postcodes to check), so you may need at least 20% deposit.
If you are permanent part time for at least 6 months, you should be OK. if it is just casual, you may have some problems. It would help if youhave been there for 2 years and show consistant income. Maybe they could change you to part time if that was the case.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You could make them positive cashflow by wrapping or lease option etc. Worksin Sydney too.
You can also do creative things like add a bedroom etc, and some people have done this in Sydney and turned the property into positive cashlfow.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Guys
A couple of years ago, I started an email discussion group about investing in Japan. It ended up dying off, and got flooded with spam. But it was a good way for people to stay in contact and discuss investing relating to Japan.
Would you be interested if I started another group?
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I personally had 5 loans IO with ANZ at 95%!
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
For something like this you would probably have to put up at least a 30% deposit, this will reduce your COC return a fair bit. Another problem is for the wrappee getting finance to cash you out. they will also need at least 30% equity. It may be better to let this one slide and concentrate on the easy deals (my opinion only).
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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