Seeing the title I was going to come into the thread to recommend Simon Loo – but I can see he has beaten me to the punch in responding to the thread.

I’ve had clients work with him and be very happy with the results and know many others who have used his services. Well worth having a chat with Simon.

Bank repossessions (mortgagee sales) generally aren’t cheaper than normal prices – they have to demonstrate they’ve made all efforts to sell the property at market value otherwise the vendor can sue the bank for taking advantage of their situation and underselling the property.

You’ll find most banks because of this will run auctions for mortgagee sales so long as the market permits – otherwise they will have a set figure in mind which may well be well above what the property is even worth.

The little thin value in mortgagee repossessions can be when they’re in working class areas and potentially vandalised by the previous owners (for ‘revenge’ or the like), and there’s limited desire for locals to purchase the property or to buy at auction. In some cases these properties may go towards the cheaper end of their range, but even then if there’s enough keen investors around they will still go at market rates.

It completely depends on your total situation as to what you can afford – this comes down to borrowing capacity which Bank B appears to think you do not have sufficient capacity.

Speak with a broker who will be able to review your situation in depth across multiple lenders to find a solution which suits you. Offset accounts are pretty standard across a multitude of lenders so if one bank says no, there may be an option that a broker can provide.

Horses for courses – there isn’t one preference to any group of people. I prefer having a larger block (we live on 2700sqm), whilst I know many people older than my household which prefer smaller.

The whole point on focusing on land content with most investors has been either regarding buying future developable land, or buying land which appeals to the most groups – families, people with pets, people who like to have yard space which outweighs the group which can’t be bothered doing the garden.

You get a QS after a renovation is complete/post construction so they can generate a report for your accountant with the relevant claimable amounts.

The only exception to this is large development finance applications which require schedules done at the point of finance application to validate the costings.

Jcam92 wrote:

thanks for that corey, yes I have got my terms confused, you are correct I was looking to use income earnt in england to service investments made in australia. Whats your thoughts on the above point raised about the trust being controlled by a trustee company that is overseas? I am a australian permenant resident but I am english if that makes any difference.
also you say your company deals with a lot of this kind of thing, what are the tax consequences of not being in australia to earn a salary yet making investments in australia

As TerryW has noted – you really need to get specific tax advice from an accountant/lawyer specialised in expat taxation arrangements. Otherwise you’re likely to be going down a path because you think its right, not because it was necessarily the best pathway/path of least resistence.

As per overseas corp trustee – Australian lenders will definitely prefer to see an Australian Pty Ltd as the trustee over a foreign entity, so weigh this up in your decisions.

I think you’re muddling terms a little bit. Income isn’t about security for lenders – but serviceability. Security is the asset which the loan backs – the location of this the lender cares about.

Lets say you’re an Australian who moves to the UK and gets a job over there. You’ll be able to qualify for a loan in Australia for investment properties based on this income pending you meet all other requirements, affordability, deposits etc.

Our office works with a lot of expats over in the UK – whilst there are some restrictions for overseas borrowers – it just comes down to getting the right advice on the right lender, structure product etc.

Terryw wrote:

I have covered the sale to a trust in this thread with 2 or 3 variations:
https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/
Listed is a link to a private binding ruling that I obtained for a client. You can click on that link and read how the strategy works and the ATO’s response – saying the interest was deductible and why.
My clients were able to transfer a fully paid off property worth $1.2mil to a unit trust and they personally were able to claim the full interest on the loan of $1.25mil even thought the proceeds, indirectly, ended up paying for their new main residence.

^saves me explaining it more. ;)

Just to tidy up your questions a bit further:

Re; borrowing in a trust with ‘no income’ – the lenders don’t lend solely to the trust – they look at your personal financial situation and infer the income from that just the same as if you were purchasing in your personal name. (but looking at the tax treatment based on how the entity is held)

And there is NO inflated asset value – it’s based purely on what the asset is actually worth and lent again as per the original posters estimated value of the investment property.

From what the original poster wrote – it looks like they believe it wasn’t a wise decision for them to buy a negatively geared property which is eating into their cash flow each week – instead of buying a cashflow property which would increase their cash flow each week. (which could then be redirected into more investments).

Or save up and pay cash for the holiday!

If you draw from a line of credit which is also used for investment uses – the purpose of funds will be polluted and cause a nightmare for your accountant to work out from a tax perspective.

If you have to borrow for the holiday – it’s best this is from a separate line of credit/loan account used solely for this purpose.