Been thinking about my strategy to get back into the market after my property settlement and divorce goes thru in next few months and was hoping for some feedback or ideas on my approach to see if it has any merit.
I am expecting to end up with one IP in flood free area of Ipswich that has about $40K equity with long term tenants. In addition it has an approved DA that does not have to be actioned for at least 2 yrs.
Due to a few financial issues with ATO with the split from my ex, i am struggling to get finance to do anything with the DA so changing my approach to get things moving again..
My strategy involves entering back in to the market with low value CF+ properties and try and build my portfolio that way.
I have been doing some research on properties from $80000 to $100000 with reasonable rents that will service loans based on a 20% deposit low doc loan. I have a pretty good cash flow with job so can pull together a 20% deposit quickly.
If I aim to purchase 2-3 low cost properties in 2013 and have them all paying for themselves I would then try and tap the equity and develop the block and build in Ipswich. In parallel I would have another 12 months paid down on tax debt which would have me in a lot better position financially as well.
However, as far as protecting these new assets i am after i as thinking of buying them thru a unit trust so the ex- cant come back and have another crack at me after a couple of yrs.
Any thoughts?
My understanding and experience of family court law is that once you are divorced and have gone through a property settlement an exspouse has no claim at all on any of your financial matters in the future. So I don't think it's necessary to put assets in a trust for that purpose?
The family law court has a website which might have some information and there is a legal forum aussielegal.com.au which may help although I'm not sure whether the advice given on that forum is from qualified lawyers.
I would strongly suggest you get quality legal advice before proceeding.
Free website or books are worthless in a situation like this and paid for advice is far more beneficial in the long run.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard
I have a pretty good solicitor already so the protection thing is pretty good.
It was more the way forward for me I was hoping for feedback on so I can get back into market ASAP.
Property is my passion, unfortunately my exes wasn't but anyway.
Would be interested to see your API interview for inspiration.
Cheers
ben
therock1 wrote:However, as far as protecting these new assets i am after i as thinking of buying them thru a unit trust so the ex- cant come back and have another crack at me after a couple of yrs.
Any thoughts?
This will offer virtually no asset protection at all.
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
Thanks Terry. Can you expand on that and provide some suggestions that would give me protection or is there really no such thing?
therock1 wrote:Thanks Terry. Can you expand on that and provide some suggestions that would give me protection or is there really no such thing?Yes, Celibacy!
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
HAHAHAHAHHA!!!!!!!!!!!!!!!!!!!!!!!!! Sad thing is, Terry is correct!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi TheRock,
"If I aim to purchase 2-3 low cost properties in 2013 and have them all paying for themselves I would then try and tap the equity and develop the block and build in Ipswich. In parallel I would have another 12 months paid down on tax debt which would have me in a lot better position financially as well."
When assessing your borrowing capacity banks will look at your income and your security.
So when you are planning your strategy make sure you address both of these issues. One without the other will see you hit a wall.
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