Can someone please give me a heads up. 1) I'm refinancing our current IP with a professional loan pack. The IP is in my wife and I's name but we will also soon be doing a small development partly financed through a second loan under the Pro pack. If we decide that it is better to own these new properties through a trust then can we still borrow via the profesional pack? Or are we wasting our time refinancing with this pack when we won't be able to borrow further money via the trust?
Also 2), I'm looking for a good mortgage broker around sutherland shire in Sydney.
3) Ban Tacs in NSW? Has anyone out there consulted Ban Tacs? If so, would you refer them or could you recomend a good accountant with property experience or property's themselves?
Any help from the gurus would be appreciated!pierswMember@pierswJoin Date: 2010Post Count: 4
how long do you want to hold the properties?
what sort of trust are youlooking at?
if it is a simple family trust or a simple trust, there are no drams now and in the future…..
BUT, why are you looking to go for a trust? are you likely to be sued through your profession at all, or is it for tax purposes recommended by an accountant? as this sometimes gets you left with the option of only one or two lenders that will lend. So you will need to get some advice on this. Also, when doing a development, your rates will differ anyway. so dont get bogged down on 'pro packs' or whatever, just get a good deal!!!
if you would like more help let me know….
PRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Unfortunately the 2 requirements are miles apart and you certainly wont get development finance done through a Pro Pack unless it is put together properly.
Without further information it is difficult to give you an proper appraisal.
Thanks, Thats basically what i was after. ie, don't refinance my first place with the suggested pro pack! I will refinance with a seperate product but what is the best option for the new property? I have about 430k to contribute to buying the land then i will have to get finance for a) balance of the land (maybe 100k) and b) costs associated with building duplexes on the site with a view to sell one then gear against the remainder that will hopefully have nothing owing on it.
I was considering trust v's personal ownership only for tax reasons (hopefully not going to get sued anytime soon… touch wood!) and whether it would be better to take a 30% company tax hit vs cap gains tax. My income will be very small during the construction of the duplex with my wife on a salary bringing home the biscuits.
Thanks Piersw and Richard (both gurus!)
Oh, I was thinking trust so i could keep my income low over the next few years for other business purposes.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
I still believe you could buy the land and construct the duplex in Trust with a Corporate Trustee and obtain a competitive interest rated product subject to a few considerations.