If your PPOR isn’t paid off, then put you cash off that loan, and then get a LOC (or just a loan with redraw) on your home. Use this money as deposits for loans with a different bank.

Terryw
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You can claim anything that is an expense related to your current earnings. If you have not IP you technically cannot claim it, but can it relate to your current job in anyway? You don’t need a business name either.

Terryw
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Hi

I consider a proeprty to be positive cashflow when the income exceeds all expenses. Positive geared is when it might be negatively geared but then positve after depreciation and tax benefits are counted.

Any property can be made cashflow positive by wrapping it. doens’t matter where it is.

You could also change a negative cashlfow into positive by converting a room into antoher bedroom for example or renting each room out separately to students (for example).

Terryw
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The best way to find out what a property will rent for is to ring up some agents and pretend you want to rent a similar property and see what the going rates are. If you ask the agent while you are looking at the property to buy, she/he is likely to exaggerate a little.

Terryw
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I don’t have that much experience with deposit bonds, but was told by one company that they do a CRAA check. However, I have had a bond myself and no check appeared on my CRAA.

usually with loan pre-approvals the bank will check your CRAA. It is one of the first things some banks do. But with some you can request a pre approval subject to CRAA check. You can actually get a deposit bond without a pre-approval, the bond company assesses you on your ability to get a loan.

There are many deposit bond companies in Australia, only a few underwriters. Most banks can issue them now.

Terryw
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Thank you fellow brokers!

Terryw
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Hi Chris

I only know of one good financial planner that is property focused, and he has just retired (early 30s). There are very few financial planners that know about property or recomend property, fewer still would know about wraps. Maybe you could see a solicitor to get an idea of the process and a wrap contract. Check out http://www.businesslawyer.com.au for one in Sydney (cost about $500?). An accountant like Bruce Whitting can talk to you and give you some advice on wrapping and structures etc. His company ahs a home page at http://www.mintgroup.com.au and a consultation would be about $200 per hour.

Other than that just read this forum. You will learn a lot and it is free!

Terryw
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Hi

Here are a few ways to get the deposits:
-Wrap- and get the $7000 FHOG as deposit
-Wrap Cashouts – reinvest back into more wraps
-Lease option – Option fees
-Buy under value – revalue and with draw equity
-Buy and add value – revalue and withdraw equity
-Buy under value – borrow based on valuation not contract
-Borrow deposits – offer family and friends 15% pa
-Use credit cards – short term until you can get a valuation to access the equity
-Get seller to pay for stamp duty etc – reduces you upfront costs
-JV partners -they pay deposit
-Work at a good job and save
-Save all positive cashflow and reinvest
and
-A combination of the above

that is all I can think of at the moment!

Terryw
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Buy using a trust. You can then disdribute the income to relatives that pay less tax than you. You could also distribute to a company and the company will only pay 30% tax.

Terryw
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