Thanks Richard – its starting to make sense now..

Though Doesnt the bank normally want to know where the money/deposit was from?

If the loan is from the vendor and IS repayable is that OK, ie. the valuation shouldnt be adjusted down?

I suppose the bank will also want to factor in repayments on this portion in the buyers serviceability would…[Read more]

Thanks for that Terry.If I dont want the money back then how would it work?If they borrow 270k and the COS is 300k, will they need the money in thier account before settlement to keep the bank happy, or can I just write a letter for the bank or something saying this amount is gifted of the price or something like that? Is there a risk the bank may…[Read more]

Thanks for that.

So assuming trust splitting not used how much stamp duty would we be up for?
Is it based on end valuation of units – but we each own 50% share originally so is stamp duty 50%???

Thanks
Grant

Josh-Prestigeloans Posted – 07/09/2006 : 01:18:24

Over 20,000 have been fined for overstating there incomes in Low Doc Loans check the ATO website for more.
http://www.ato.gov.au/corporate/content.asp?doc=/content/mr2004042.htm
http://www.ato.gov.au/corporate/content.asp?doc=/content/76377.htm

I checked the websites Josh and I cant find any…[Read more]

Hmmm,

So if your projected income is some capital gain from selling a house the profit might be 100k. But the after tax profit after 50% CG dscnt and all other deductions might be 30k? Or less if a trust involoved.
So on your tax return its 30k.
So is your Lodoc income 100k or 30k???

Thanks
GRAnt

Hi Ricky,

Im often looking for equity partners to, so Im curious what do you look for in a deal before u would put your money in? And what security would you require over your money? Are u just looking for a %return (paid monthly/yearly) or would you only go in if you were a partner on the title of the property being purchased.

Thanks
Grant

Hi Joshua,

Do u have a link to that ATO article? I had a search but the only thing I can find is people being fined for understating thier income in thier tax return or not even submitting thier tax return.
But im not talking about that, rather what can be included in Lodoc income. Especially profit from selling a property.

Thanks
Grant

Thanks to Derek / Simon / Artaud / Terry & Tony for all your input. Some of which was quite lengthy and detailed.
Proverbs 15:22 says “Plans fail for lack of counsel, but with many advisers they succeed”
I appreciate the forum and the oppurtunity it gives to be able to hear many different points of view on a subject – often bringing in a…[Read more]

Terry do u even need to do a cash withdrawl from card A?
Once I did a balance transfer but forget and paid out card A before the transfer and found the card A simply went into credit for the tx amount. Card B confirmed they dont check the amount card A is in debit first.

Grant

Hi Redwing,

Im also in WA and after speaking with OSR they confirm that if properties held in different trusts then land tax is treated separate for each trusts. ie not combined saving lots of land tax.
Are all your properties held in one trust? If so why? Is there any disadvantage Im not seeing in having multiple trusts?

Thanks
Grant

Originally posted by foundation

How exactly is it a great deal?
By the end of the 5th year, you’ll be paying (on their $400k example) an extra $500 per month extra as compared to fixing the entire $400k at 6.99% (which is easily doable NOW). Add 30 years of repayments, and that figure comes to almost an additional $170,000 in interest payments,…[Read more]

Thanks Joshua,

Carrington is interesting, unfortunately they require 2 yr ABN which I havent quite reached yet.

But has anyone seen this at
http://www.investorsdirect.com.au/newsletters/072006/story1.htm

2. How can you keep borrowing money without an income?

There are mortgage products that will allow investors to borrow 80% of the…[Read more]

Well theres finally some more info on this loan in the latest investors direct newsletter –
See link below:
http://www.investorsdirect.com.au/newsletters/072006/story1.htm

Sounds like a great deal to me, id like to sign for 3 or 4, pity they didnt leave any clues on how to apply?? Or the requirements…
Anybody know?
I would attend a seminar but…[Read more]

I used to do my own tax return, though not to save money. The tax agents bill is really neglible in the overall picture, but simply because it forced me to learn all the rulings. Ive found that by having to know the tax rules it helps me to make better decisions during the year, so that Im better placed come tax time. My returns have involved…[Read more]

Thanks Terry,

Dont worry my wifes got list of jobs to keep me busy for a decade or so…

I sort of thought carrying forward losses might justify it so I’ll keep claiming. But at the moment I only have a discretionary trust.
Given my plans would u think it worthwhile setting up a HDT??
Could I use a HDT now but have it work like a ‘normal’ trust,…[Read more]

Thanks Cameron,

There would be no fixed contracts involved, just qoutes from contractors. Would that be OK to substantiate costs?
If it was 65% of end value would there be MI involved?
Considerint the low LVR would full financials be required (ie. full income / assets etc…)
Would it be postcode sensitive?

Thanks
Grant

Well I emailed my accountant and heres his response for general info.

“When determining the deductibility of interest, the key determinant is the use the funds are put to.
If you borrow funds, and park them in an interest bearing savings account from where you immediately purchase an income producing asset, then deductibility will be…[Read more]

Terry,

What if I borrowed the deposit of my friend, placed it in a savings account then paid it to the settlement agent.
When I pay them back can I just draw down money into a savings account, then transfer it to the friends account.
Have I lost the link, or is that what I need the loan agreement for?
The loan is for like 1 week so I’m not to…[Read more]

Thanks Terry,

OK, what if the savings account is an offset account?
So that when the expense is paid from that account the interest bill that month will increase?

Thanks everyone for your input, very helpful.
I suppose another way to do it is for me to get a valuation done direct by a panel valuer. The valuer wouldnt even need to know that its a sale or that there is a COS would he? (Do they title search owner name?)
I’m especially thinking of sites where Ive achieved DA before settlement, or even just…[Read more]