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]

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]

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.au

Terryw
Discover Home Loans
North Sydney
[email protected]

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]

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]

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]

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]

My company has its own 100% lend product. the interest rate is 6.45%, and some of the condition are;
Owner occupied only
max $300,000 lend
No units in buildings greater than 4 stories
no defaults
need 12 months of continuous employment
need 3% genuine savings
The LMI fee is 2.6% (!)
etc

As you can see it is very tough to qualify, as the risk is much higher. beats the Pepper product though.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Insider
I agree.

These loans will appear on your personal CRAA (just ask anyone who has a loan thru a trust).

You would be required to tell a bank about any personal guarrantees.

Terryw
Discover Home Loans
North Sydney
[email protected]

That sounds very strange and therefore I suspect it to be wrong. Can’t think of any reason why it would be correct.

Terryw
Discover Home Loans
North Sydney
[email protected]