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
Discover Home Loans
North Sydney
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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
Discover Home Loans
North Sydney
[email protected]

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
Discover Home Loans
North Sydney
[email protected]

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
Discover Home Loans
North Sydney
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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
Discover Home Loans
North Sydney
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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
Discover Home Loans
North Sydney
[email protected]

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
Discover Home Loans
North Sydney
[email protected]

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
Discover Home Loans
North Sydney
[email protected]

Yes, the trust will have to pay tax on the income received as rent, but I think the idea is to have the property negatively geared, so the trust actually makes a loss. This loss cannot be distributed, but could be offset by other income of the trust.

The trouble is the trust must charge you market rents, so over time, the property will become positively geared so the trust will then have the problem of distributing this income. So you could end up paying tax on your own home. Maybe this could be offset by distributing to low income beneficiaries or the trust buying further negatively geared property.

And as Rod said, you will lose your PPOR CGT exemption and the trust will also have to pay land tax.

It may be a good idea, if you are thinking of living there for only a few years, and then moving on.

Terryw
Discover Home Loans
North Sydney
[email protected]

This doesn’t sound right. Non recourse funding is where the lender lends to the company with only the property as secuirty and no directors guarrantees. I hanve’t found any lender that will do this. All want directors guarrantees.

I think he may have meant you are the person finding hte properties, whcih you put to your JV partners who then apply for the loan. In effect you will have unlimited finance because the JV people are the ones getting the loans in their names. You then have an agreement with them behind the scences.

Terryw
Discover Home Loans
North Sydney
[email protected]