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  • Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Skyeboy

    You will lose any further capital growth by selling an option on your house or buy wrapping it.

    You could make some money by doing Mezzanine finance. Maybe a better option is to use the equity to buy another property which you could wrap?

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Without using the equity to buy more income producing property (or shares/business etc?) it is not possible to ‘make’ the property cashflow positive. Buying +ve cashflow property could offset the negative though.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    That is what I do. I have an agent in Vic that sources property for me. He doesn’t have a web address tho. I better not give out his phone numbers on this forum without his permission. you can email me if you like and I will pass your details on.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    hi Ishita

    I also work at North Sydney, maybe we could have lunch together one day. I like to participate in other meeting too.

    BTW, why are you putting ** in your email address? Is it to stop spammers getting your address?

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Jay Cee

    What about borrowing the deposits you need from family/friends and offering them a good interest rate (15%?). You should still be able to make a good profit.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Jay Cee

    He sees capital growth as the main way to wealth. And with wraps we are giving that growth away.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    I’ve been to the NAVRA course (late 2001). the course is basically half shares and half property.

    His property approach is very different to most people on this forum. He is very in favour of high growth property and advises people to go for the more expensive properties that will have higher growth rates. He offers a free ‘financial consultation’ after the course. I went and he advised me to get out of my wraps as soon as possible! He is not impressed with this strategy to say the least.

    The cashbond strategy is his main claim to fame. It is a good strategy, but he charges a price to set it all up (of course), there will also be a loss as the annuity will get you about 5% pa, but will cost you about 6% to use your money from your LOC. He has a tax ruling allowing the loss to be claimed as a deduction against other income as the purpose of teh annuity is to increase borrowing capacity. I don’t know if I would use it, but for many people it appears to work.

    It is worth going to the course as it is so cheap (about $300 or less).

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    $10 a week is not much to be paying. Just think about what would happen if that single mother stopped or got behind in her rent payments. Could you handle having to ring her up asking her why and being given some sob story? I’d probably give in and say ok next week would do.

    Sometimes it is best to put some distance between you and the tenant.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Yep. It appears that every time you guarrantee a loan the bank will do a CRAA check – hence an enqiury will be listed.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    What state are you in?

    You can usually get this information from the land titles office for about $5 over the internet.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Here is a link to the story on Today Tonight
    http://www.todaytonight.com.au/stories/592932.html

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Grace

    If the property has risen in value, you can apply for a release of security. This would remove any cross collateralisation and should only cost about $300 or so plus the cost of a valuation.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    David

    My company (the one I work for that is) also has this product, the 100% lend.

    There are other conditions on this loan as well:
    • Must be their only property
    • Must be less than $300,000 for Sydney property, $250,000 in Melb $200,000 elsewhere
    • Must have 3% savings (genuine savings over 6 months)
    • LMI is 2.6% of purchase price!

    The LMI company is taking all the risk, and is charging accordingly.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    It does happen.

    I currently have a client who has gone unconditional on a $915,000 purchase. AND he wants a low doc!

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    I have heard the same. Banks must be seen as getting at least market value for the properties they foreclose on.

    But you could still buy properties from people that are about to be foreclosen upon. You just have to find them

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Hi Richmond

    Basically what Michael says is (theoretically) correct, but he hasn’t taken into consideration closing costs. Assuming 5%, then the figure would come down to $1,320,000.

    But you still must meet serviceability requirements, ie you must have the income to support the loan repayments.

    Putting your figures into one of the bank calculators, I get a maximum borrowing capacity of $449,000 – without including ny potential rent from new purchases. Assuming you were to get a 5% rental yield this figure would jump to approx $685,000.

    [I have assumed you get $370 pw rent for IP one, no children, no credit cards, and repayments for your current loans are $838/month and $1000 per month).

    I understand why you don’t want to use the cash in your offset account. Mayabe you could, just get another split on that loan up to 80% LVR and use money from that as deposits, and keep the $55K in the offset. You could also increase the other loan up to 80% as well.

    Down the track you can consider using low doc loans. These loans generally have a higher interest rate, but there is one low doc product at normal rates (6.07%) at 80% LVR. But you must be self employed for at least 3 years to qualify. This must be proved by an ABN registration. Therefore it may be wise to register for an ABN now in anticipation (costs nothing).

    Don’t really know on the LMI angle. Some like to avoid it by paying bigger deposits, others like to put as little money into a deal as possible. I personally went for the later approach – I tried for as many 95% loans as I could get.

    I think if you are going to pay LMI at some stage it would be better doing it sooner rather than later as the LMI crowd have stricter qualifying requirements, so if you wait till you do a few properties and then apply for a 95% loan, they may say someting like you are too rental reliant etc -Even tho you may still have the income to qualify for the loan.

    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Hi all

    I agree with Gus. Cross collateralisation is the same as cross securitisation and means, basically, using 2 (or more) securities for the one loan. This is not such a good idea as the bank often has more security than it needs, and it makes things messy if you want to refinance or sell one of the properties later. I better way may be to use a LOC on one property and to withdraw the deposit for the next property from this account.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Michael

    I have no experience (as a mortgage broker) with getting loans for clients with Hybrid Trusts soI don’t really know how banks will treat them. I have had client purchase property thru a discretionary trust and the bank always asks for a copy of the trust deed which they (supposedly) have their legal people scrutinise to make sure the trust is allowed to borrow (etc). (They probably don’t even look it!)

    As you are going to use Dale, you can’t really go wrong. People must be getting finance approved using the trusts or they wouldn’t be using them.

    Michael, it looks like you are becoming a bit of a trust expert!

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Michael

    2 points:

    1) I have heard it is harder to get banks to accept hybrid trusts.
    2) I have also heard Dale GG mention that Hybrids may not be as safe from a asset protection point of view.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Stuart

    I can guess who you are talking about and agree with you on that one!

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 20 posts - 16,141 through 16,160 (of 16,302 total)