Forum Replies Created
Brett
Good idea, but not all banks will allow this.
Terryw
Discover Home Loans
North Sydney
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Rita
CBA are like that. They won’t tell you the figure, but will tell you what 80% is. Strange isn’t it!
Terryw
Discover Home Loans
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
Most people would have done it the other way around. Your most valuable asset is securing your investment property. But it should be pretty safe!
Yes you could restructure and get a loan secured against your investment property and access that equity for deposits for investment properties. You should be able to buy a fair few with that sort of equity.
Terryw
Discover Home Loans
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
credit cards?
There are specialist lenders (or sharks?) that lend money short term. rates are around 10% per month and are securred by a caveat on your house. can be done in about 24-48hrs 9maybe too late by now). They advetise in the newspapers (daily tele in Sydney).
Terryw
Discover Home Loans
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
Michael
If you were going for a low doc loan, htey would not know wheter you are trading or not! No proof is needed.
Terryw
Discover Home Loans
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
Hi
I agree wiht that. I have used a buyers agent when buying interstate too and it has worked out well.Terryw
Discover Home Loans
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
Remy
You can still pay off your mortgage and invest at the same time. Imagine if you got into a few positive cashflow properties, you could get a LOC secured on your house, so you ‘home loan’ would remain the same level, then buy cashflow property using IO loans, and pour the excess funds into your home loan-paying it off in now time.
Taking things to the extreme, you have a $700,00 property, 80% of this is $560,000, minus $30,000 home loan would leave you with $530,000. This money cold then be used as deposits on wraps. Taking an $80,000 property for examaple, you would need $20,000 for deposits and costs (taken from the LOC). $520,000 divided by $20,000 = 27. So you could theoretically purchase 27 of these properties. The cashflow on one of these would be about $3000 per year, so that would give you a yearly income of $81,000. Plus when each property wrapee cashed you out (about every 1 to 3 years) you would make another $15,000 capital gain as well.
The above all depends on your incomes and serviceability etc.
(If you think you can’t wrap, there are people/companies that will do it all for you for a fee-some are on this forum.)
So you could probably retire within months if you really wanted to.
Terryw
Discover Home Loans
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
this happens a fair bit with commerical and farm type deals. I haven’t see it yet for ordinary residential.
Terryw
Discover Home Loans
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
Of course. You would have to pay tax on your profits (income minus expenses), this would be added on top of your other income. If this figure is negative it reduces the amount of tax you pay, but if positive, then you will pay more tax.
Terryw
Discover Home Loans
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
If you can keep comming up with 20% deposits, then you can keep on buying property. There are many ways to get the deposit such as wraps, option fees, wages, capital growth, saving positve rental income, money partners etc.
Watch out for ASIC regulations if you are going to advertise for investors too!
Terryw
Discover Home Loans
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
Good post Rod.
Just a few more points. The family law court has wide reaching powers and is able to reach assets held within a trust and split them accordingly in some circumstances (so watch out!).
Centrelink also has recently become aware of people using trusts to lower their income and so if they deem you to control hte trust, they will attribute all or part of teh trust income to you automatically no matter how it is distributed.
for more info, there are some interesting articles on the following sites:
http://www.taxlawyers.com.au/
http://www.taxlegal.com.au/
http://www.chrisbatten.com.auTerryw
Discover Home Loans
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’ve used eurofinance a few times and they are very good. There are no break costs on this product, they can even roll it over into their Adelaide bank low doc with no new application needed. I think it is 1.25% app fee and another 1% fee if the LVR goes over 80% (max 85%). Hpe this helps.
Terryw
Discover Home Loans
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
Felicity
2 good low docs without LMi include Adelaide Bank and ING bank, both up to 76% without LMI.
Others include ANZ and St george at 65% LVR.
I think it is agood strategy to get as much money as you can early on when it is easy, ie 95% if possible. Keep you cash for future properties. Then reduce you LVR as you go forward. changing to 80%, then 80% low docs without LMI etc.
Terryw
Discover Home Loans
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
There are many tax rulings etc on this available at http://www.ato.gov.au search on the legal database under rulings.
Terryw
Discover Home Loans
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
We have a 85% asset lend available. But the rates are very high and it is only for property in ‘cities’. 9.5%!
Terryw
Discover Home Loans
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 would form a distretionary trust if I was in your situation. It would only cost about $1000, but could save you thousands.
Terryw
Discover Home Loans
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’ve been to his free seminars a few times (few years ago), and I got a lot of good info from it. I reckon if it is free, then worth going.
Terryw
Discover Home Loans
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
Michael
Absolutly nothing. No accounting is needed unless you trade. No Bas statements unless you register for the GST.
Terryw
Discover Home Loans
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
Steve’s program soudns good.
Did anyone see henry Kayes add in the sat SMH? He is going to make some millionares in 6 months or he will donate $1mil to charity! This is in aid of clearing up the recent bad publicity.
Terryw
Discover Home Loans
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
Michael
i don’t know what you mean by setup fees. Some of what you mention can only be depreciated. the setup cost of the trust (trust deed etc) cannot be claimed (I think) as it is not really an expense of the trust. If your trust owns a car and you use it for personal reasons, then you will have to pay FBT. So really there would be no difference in buying it under you name or through the trust. Same with an office, if you are renting you could claim the office wheter or not it is ‘through’ the trust. You can do it in your own home too, but that may expose the property to CGT when you sell.
Terryw
Discover Home Loans
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
