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I agree with Rstar.
You haven’t indicated any income, so it is a bit hard to estimate.
Generally you can borrow up to 80% LVR with not too many hassles. However 700,000 x 80% = $560,000. You already owe $550,000 so that is just $10,000. If you can service it, you could go to 90% = $80,000 extra.
Using this as 20% deposits, you could get roughly $320,000.
Terryw
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There was a posting made on the Somersoft forum at:
http://www.somersoft.com/forums/showthread.php?s=608dcb31ef648d9402e1a9c944173a1c&threadid=9980&highlight=mezzanineBut it has no been editied due to copyright infringements. It apears to be from an article called Flat Broke in BRW July 3, 2003
There is a link here
http://www.brw.com.au/stories/20030703/19427.aspx
But you have to be a subscriber to access it.From memory, I developer was introduced to a group of NII clients. (The development company was unrelated to NII). The developer was offering mezz finance with nice interest rates. A lot of NII students signed up. The direcots of the company didn’t do things right, one even fled to NZ. The end result was a lot of people lost a lot of money.
Terryw
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Vluu 27
Holy shit!
Sounds like you must have entered into a contract. Do you still have a copy of the thing you signed?
I would suggest you speak to a solicitor quick. Also ring up the department of fair trading and ASIC. They are both looking into these sorts of companies and they may be able to help?
Also make contact with ACA, and it wouldn’t hurt to go to 4 corners as well. (They did a story on this sort of thing about a month ago).
And also mention this on the somersoft forum. There are a lot of people there that don’t like this company, and there are a few solicitors as well.
Let us know what happens
Terryw
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Chandara
There are actual trust deeds for both trust types on Chris Batten’s site. I hybrid is a mixture between a Discretionary trust and a Unit Trust.
But there are 2 types:
Hybrid Discretionary Trust, and
Hybrid Unit Trust
I am not sure of the difference between the 2.You also should beware of cheap immitations. Apparently there are accountants out there offering poor quality hybrid trust deeds.
Terryw
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hw007
I beleive the 6 years starts again if you move back into teh property.
Speak to an accountant-not just any, find a good one.
Terryw
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Comdom
I haven’t heard about that before. I don’t beleive it is possible, but would love to know more details. Do you have the company name?
Terryw
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Just a note on 2. You probably wouldn’t have to pay the CGT until you lodge your tax return. It might be an idea to delay it as long as possible (until Feb?) and keep the money in your account earning interest.
And is it possible to claim one of these properties as your PPOR? Did you live in either at any stage?
For an accountant in Sydney try Bruce Whitting. http://www.mintgroup.com.au (I think)
Terryw
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I posted about this about a month ago somehwere here.
There is a little rule in the tax act that allows you to rent out your PPOR for up to 6 years and still claim it as your PPOR. So if you have lived in a property as your home, then rent it out, then sell it before 6 years since the date of living in it is up, then you do not have to pay any CGT if that was your only PPOR.
Threfore, Hamster, I beleive your accountant is correct-you will not have to pay CGT.
ps I am NOT an accountant.
Terryw
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If you want to sell, another option is to sell your property to the trust (trustee). that way you can sell and keep it at the same time. It will save paying agent’s fees and the hassle. Your only going to replace it with another IP anyway. I suppose it depends your expections on growth and rental income.
Terryw
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I use a trust. It is, in my opinion, without a doubt the best way to go!
Terryw
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Vul
I had the same problem with an overpriced course I did in SYdney a few years ago. I ended up reporting the company to the Dept of Fair Trading and then they quickly gave me the refund.
Terryw
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Do they still offer a full refund if you withdraw on the 3rd day?
Terryw
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Borrowings for a trust or company has the same effect as borrowing as an individual. This is because the bank will require the Trustee to guarrantee the loan. If teh Trustee is a company, then all directors must guarrantee the loan. It appears on your CRAA.
Terryw
Discover Home Loans
North Sydney
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Try
http://www.stockcentral.com.au/forum/This is a realllly good forum.
Terryw
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Fullout
Don’t do it. It is not worth the very high risk of losing all you money for a mere 25%.
A lot of HK disciples recently lost all their money when the developer went bust-some fraud involved as well. Some lost $300,000!
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“be careful if you are talking to bank staff about finance structures. They know about their own products”
Sometimes they don’t even know about their own products!
Terryw
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try
http://www.chrisbatten.com.au
http://www.taxlegal.com.auTerryw
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For what its worth, I completely agree with Stu.
Terryw
(Mortgage Broker)Terryw
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There was a whole development that went bust recently. Many people have lost $100,000 and more in this mezzanine finance investment. And the company involved was allegedly intorduced to investors through a ‘investment’ company famous for Mezz finance.
Terryw
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I am in Sydney but honestly could not recommend any accountant up here that I know of. I would rather recomend Dale Gathenum Goss in Melbourne. He understands wraps, property and trusts fully.
Terryw
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