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Thanks for your advice Hany.
That's a real shame. I didn't want my husband on our refinance application because he is not PAYG worker. He is considered self-employed and therefore requires tax returns which we haven't finalised yet. We wanna take advantage of the 1.5% special from St George and could have refinanced if I'm the sole borrower on this loan.
I just can't figure in my head why "if your name is on the title it must be on the loan"………does it really matter to the bank that all owners of the title have to service the loan when one the borrowers have enough capacity to service the loan by themselves?
It sounds such a pain in the b*m since we have high enough income to borrow 3 times as much we require for the PPOR loan!
daniellee wrote:Hi, EveryoneThis is the cost pricing I have been given by the accountant.
Tax returns for individuals: From $150 + $100 per investment property per yr
Tax return for Trust / company: From $1000 upwards per yr
Set up of Family trust without / with Corporate Trustee: $2200 / $1000Yr 1 with a trust, the running cost for us will be from $1300 (2 individuals + the trust).
Yr 1 without a trust, the running cost for us is from $400 (2 individuals + 1 IP).All interest and depreciation would be trapped in the trust, so our holding cost would jump from $40 per person per week (utilise interest & depreciation) to $90 per person per week (no interest & depreciation available).
So, what are the strategies around this?
1 – Find another accountant who charges a cheaper price?
2 – Bear the 3-5 yrs of no claiming of interest deductions and depreciation per property?
3 – Change my strategy and start looking for only positive cashflow IPs?I understand the benefits of a trust, but the numbers are not stacking up for our cashflow. So, either most people who use trust are already experts at investing and every property they get their hands on become positive'y geared very quickly, or most who use a trust have to deal with the medium term cashflow pain.
Regards
DanielHi Daniel,
U think Individual Return Accounting fees of $150 + $100 per property is expensive? As a barometer, Chan & Naylor charge $395-$905 for individuals with IP and other Accountants in the CBD charge around $400 each return……….how low do you want to go?
But my point is "if you pay peanuts, you will get monkeys"
