I just got hold of your book and I realised I could have been smarter in my investment. So, I am planning to make changes for positive cash flow and capital gains in my future investments.
I would like to set up a trust so I can buy multiple investment properties. However I have a mortgage on a house which I can choose to pay out. It is not financially viable to sell at the moment. If I pay off the loan completely, can I start afresh by registering a trust and then getting a new loan under the trust.
Your advice is much apprecaited.
Thanks
DeviWhose book? Steve McKnights?
There is no need to register a trust. In many states stamp duty may be payable on the trust deed though.
Whether you have a mortgage on your house shouldn't matter, you can still get a trust started and you could even get a loan in the name of the trust, such a LOC but using your house as security.
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 Terry
thanks for your quick reply.
yes I was referring to Steve McKnight's book.
LOC – letter of credit is that right? If i get a LOC aganist an existing property as you had suggested would this attract a higher interest rate?
Thanks
Devi
LOC = Line of credit.
They generally have slightly higer rates but not always. You may also be able to use a normal IO loan too – ideally one with free redraw.
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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