Forum Replies Created
It depends. In a nice neighbourhood it might be a positive, but in a rough area it might be a bad thing. Also depends who your target tenants are.
Cheers,
LukeA property in Western Sydney negatively geared to about $80/week and at 75% LVR doesn't sound like you are getting as much from the property as you could. Of course I do not know where it is, or what kind of property it is.
You should consider adding value in order to increase the rent, such as doing a cosmetic reno, doing a more serious reno (new kitchen/bathroom etc), subdiving and building a second house, adding a secondary dwelling to the rear of the property etc. Western Sydney is a good spot to add value and generate nuetral/positively geared properties.
Cheers,
LukeI think you will find that property repossessions are relatively low compared to other developed nations around the world, and by no means high compared to historical levels in Australia. No need to hit the panic button.
Cheers,
LukeI think I remember reading about disability trusts in a book- I think it was in Trust Magic or maybe Family Trusts by Renton, I can't remember, but I think that you are right Micahel.
Cheers,
Lukechristianb wrote:It's an interesting question.
Perhaps it has to with the structure you use.
I'm not an expert in these matters, but there are others on here that are.In any case perhaps it could work like this:
You form a unit trust with a corporate trustee to purchase the property.
You provide security for the trust using your equity.
The trust has your daughter as beneficiary.
The trust should be established so as to allow undisclosed family members to become beneficiaries.Good luck with your research
It probably wouldn't be a unit trust- most likely some kind of discretionary trust with yourself, your wife and your daughter as beneficiaries (whether they are primary, secondary or other kinds of beneficiaries I do not know). Make sure you ask an accountant who knows what they are talking about- not all accountants are familiar with trusts.
Terryw on these forums seems to know a fair bit about trusts, maybe you will strike it lucky and he will post on this thread or you could PM him.
Cheers,
Luketherock1 wrote:Hi Terry,
Yeah i know its risky but i have to try something.
Willing to pay over the odds for interest, i can do it easily and quickly but just need to find someone who is prepared to go in.I have house boat car and all sorts of other items to use as collateral.
He said he does have a house boat and car and "all sorts of other items"
Why can't you sell your house, boat and/or car??
Cheers,
LukeHi Theresa,
I tried to PM you but you have your messages turned off. Let me know when you are able to accept PM's and I will message you.
Cheers,
LukeChris, can I suggest that you talk to your accountant now and get it sorted out before doing anything with your borrowing structure. The reason that you are in this mess is that you did not talk to you accountant in the first place before setting up your loan structure. Don't make the same mistake twice!!!! By the time you talk to your accountant in a few months or a few years time, you may have done something you shouldn't have and by then it will be too late to unwind.
Cheers,
LukeJamie M wrote:Anything written by Steve.Margaret Lomas – 20 must ask questions
Jan Somers -building wealth through residential investment property
Dolf De Roos – Can't remember the name of the book
Michael Yardney – all books are generally goodCheers
Jamie
Dolf de Roos has a couple of good books that I have read:
Commercial Real Estate Investing
Real Estate RichesCheers,
LukeWhat Every Property Investor Needs to Know About Finance Tax and the Law- Michael Yarney
How to Legally Reduce Your Tax- Tony Melvin and Ed ChanCheers,
LukeRickH wrote:MakingTheJump wrote:Hi Rosa,My loan is in Australia which I pay from my money here and I am keeping the rent money in the US with a view to bringing it back over when the AU dollar drops. Although it might be short term pain, if you can service the loan in Aus and keep the US money over there, it could pay off in spades if and when our dollar drops.
Make the jump : what about US taxes. You wouldnt be able to claim any of the the loan against your income would you ?
I may be wrong as I have yet to to takle a US tax return …….Depending on how you are structured you may be able to. If you loan the money to the US entity at a commercial interest rate, and have the loan agreement so the interest is capitalised, then I believe you would be able to claim it.
Of course before you invest in the USA you would have sorted this all out with your accountant.
Cheers,
LukeGood advice as always Terry. You should definitely not sell a property just because it is negatively geared- in fact a negatively geared property in a good location might be a better investment than a positively geared property in a secondary location depending on what your goals are.
I would also take Colin's advice and not cross collatoralise any loans- there are much better ways of structuring borrowings, and crossing loans is not a good option.
Cheers,
LukeI would suggest that it would be best to own the property through a seperate company/trust. That way the property has some level of protection should the stair making company go belly up and creditors come chasing him.
Cheers,
LukeYou are right Catalyst in that it depends on what you are after. Metropole focus on properties in inner ring suburbs, which typically mean they are low yield/high growth properties.
Cheers,
LukeTry Metropole Properties if you are after a buyers agents- I have not had any dealings with them personally but I hear that they are quite good and know their stuff.
Cheers,
LukeHopefully it sells soon, good luck with the sale!
Luke.
If you can't sell at that price, then it obviously hasn't increased by $135k in two years. Judging capital growth by median house price statistics can be misleading.
Cheers,
LukeYep, I think it all depends in location. I have recently refinanced a smallish 1 bedroom apartment in Petersham with no worries. A family member recently refinanced a 3 bedroom house in Karratha, WA and had to jump through hoops and order a full valuation in order to release funds. Both deals were with the same bank. So I think this shows that it depends where the property is located rather than what the property is that determines whether a bank will lend on it.
Cheers,
LukeGood point SNM.
