Forum Replies Created
It could be Liberty Finance! They ahve indicated to me that they will do wraps on their normal rates (which are usually higher than standard rates by 1 or 2 %)
Terry
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Bris22
It doens’t matter what you call it, as long as it works.
If you did what you propose, it would only be negatively geared for a very short time. The interest would be decreasing rapidly as you pay it off, so your overall deductions would decrease resulting in the rent you receive being more than the deductions making it positively geared From a tax perspective). You will have to pay tax on this money then.
This is one strategy and works well, it is a very safe way of doing it. Imagine then when you buy your second property, you could put the rent from you first into that as well!!
However many people try to leverage more by buying as much as possible as soon as possible. For some stories look at that orange book by Jan Somers (has 101 investment stories with people using this and other strategies). Different things work for different people, go with what ever you are comfortable with.
Terry
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
Here are some more:
Freestylers
http://bne003w.server-web.com/~wb190Jan Somers Forum:
http://bne003w.server-web.com/~wb013John Burley Forum
http://www.mastermindforum.com/
(what ever you do, don’t mention Steve’s name here
)3E Revolution
http://www.3erevolution.com/cgi-bin/ikonboard/ikonboard.cgiAll are Aussie sites except the Burley one.
Regards
Terry
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
Bris
I believe you can do this by using and/or nominee (in some states at least). But you have to have an agreement in place with the person you are going to nominate beofre you sign the contract-otherwise stamp duty. This way you don’t actually ever have to own the house.
Another way to do it is acquiring an option to purchase, and then selling the option.
Or you could just onsell.I have a friend doing this in Sydney at the moment. She bought at an auction and had found a new buyer straight away 9or maybe even before). She is organising a simultaneous settlement so that she won’t even need a loan, however she is getting a loan preapproval just in case the reselling falls over or takes too long. It will be interesting to see if the bank valuation on the resale will come in at the price the onsellers are going to pay (about $40,000 more than she bought it for).
good luck
Terryw
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
Gav
You could find out who the bank has on their panel and get it done yourself, but there is a danger that the bank will reject it. It works with some banks though. Also when you do get your loan application in, you should have the bank get the valuer to ring you to arrange access. That way you can meet them onsite and show them any comparable sales and research you have done. Basically talk up the price a bit. Also ask them what you could do to the property to make it worth more. eg if I put in a carport, have much would the value go up? etc
Terry
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
Imron
Ni hao!
I too have a great love of language learning and was planning to go to Beijing this year to improve my Mandarin. I’m just trying to improve my cashflow a bit before hand. (pls email me off line at [email protected] so we can talk more about China).
Have you thought about being an investor? There are people/companies that wrap for you. You put up the deposit and get teh loan and they arrange it all. Many people living o/s use these companies. I did my first 3 wraps using a company in Melbourne, my total upfront costs were about $8000 per property and I got the FHOG back as deposits ($7000 each!), but I was working and able to qualify for 95% loans. As you are not working here, you may have to go Low doc. That might get you a bit of cashflow, (ie $2500 to $3000 per property), you could go back to China and wait for them to cash you out and tehn go and buy 2 more and so on. just some ideas.
ps what are the living expenses like in Beijing?
Regards
Terryw
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
Jenny
You figs look about right. it is pretty good isn’t it. Imagine if you have a few of these and they start cashing you out at 1 per year. that’s an extra $18K per year-based on your figures, plus all of that cash flow in the meantime.
Terry
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Wei
If you concentrate on the cheaper properties and get the FHOG from the buyers, then it wouldn’t require much money out of your pocket at all. You could probably get a few of these loans at a high LVR before you hit serviceablity problems, by that time you will have all that cashflow comming in which will help you save up the deposits for the next property and so on.. snow balling.
Terry
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 Fergus
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 Matt
Here are some quick thoughts. What about doing some type of rejuvenation to your house. something that will increase the value without costing much. Paiting, gardening, carport etc.
Also when you go to apply for your line of credit or next loan put down your house as being worth a lot more than you think. I know someone that thought his house was worth $440,000 so he put down $470,000 and that is what the bank valued it as-they didn’t even do an inspection.
Also have you got a 100% offset account linked to your home loan. These can save you heaps of interest, and it is a snowball effect when you start saving interest on interest!!!!
Terry
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Mark
Try ANZ, 95% LVR interest Only with the LMI added to the loan! Not bad.
Regards
Terry
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 have some wrapped properties and used ANZ thru a broker. I disclosed to the broker, I don’t know if she told ANZ!
Terry
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 can’t see why you couldn’t wrap at the high end of the market. There would be people who could afford the high rent, but couldn’t afford to borrow to buy such a property. For various reasons they don’t want to live in cheaper houses which they could afford.
The highest valued property that I know of being wrapped is about $300,000 with a interest spread of 3% and a markup of about $30,000 on price. The wrapee was a restaurant owner that had just divorced and therefore didn’t have the deposit, but still had high cash income!
Terry
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
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