Forum Replies Created
What’s to be gained ?
Who not pay a beneficiary the distribution and have the beneficiary make a donation, if over $2 and a registered charity I understand it will be deductable. i.e. a nill event.
This is only the case when developing or property investing is your main occupation.
Does the investing need to be done in a personal name ?
What if the investing was doen in a company name and I was a salary earner of that company ?It was this site that got me thinking in the first place…
You need to subscribe at $33 pmI’ve never heard of him before, is he good et c?
Anyone had experiences with his service ?
I had a look at this however concluded it was still a version of 1 or so and had been there since 2004. Looked like an abondoned project to me.
I would be very interested in hearing some comments from those using this package.
Thanks
Hi Richard,
“In fact under the Property Act if they have repaid 1/3 of the original principal they can ask you to transfer title into their name and you take a motgage against the property”
So my name would appear on the title document ?
I didn’t think this was possible, if this is the case then who not do it from square one when wrapping and avoid all the complications of the title ramaining in my name ?Ahh… of couse my financier would not allow transfer of the title…
How could the vendor sell the property from under my if my interests are protected by a caveat ?
Attempted humour…
Keep the day job ?
I am not willing to sell it outright but I may be able to provide you with finance.
Do you mind if I ask how much deposit you have ?
Wow, what an excellent analogy !!
If the buyer bauks at the price I can say… “have you ever been to 7-11…”Thank you as this answers my question and a number of others at the same time.
Do you formulate your figures on a price mark up and charge a premium to std interest rates or merely a price mark up funded at the equivelant of bank rates ?
How bg a mark up does the market accept ?
Set percent ?
Set dollar figure ?I am looking at properties around the 350-400k mark.
Thanks
Henry
Now we’re talking Terry…
So, as I am self employed and have been for years I should be able to:
a) register a new company & ABN
b) register a trust with the new company as trustee
c) obtain finance at 80% LVR (low doc) for the trustThis sounds great, thanks.
Surely being restricted to 70% LVR is a significant limitation for those performing wraps under this structure.
For me this limitation makes the corporate trustess structure unworkable as cashflow will require 80% LVRs.
Thanks
Sorry to labour the point but I want to ensure I understand the setup & implications.
To use a trust which has the company as a trsutee we would be limited to 70% LVR as the trusts would be registered as required.
Dr,
So it you are using the ABN of the trust, and you use multiple trusts, registering new ones as you go then surely this would limit your borrowings as the trust will have been registered less than 2 years and not qualify for a low doc 80%LVR loan.
Henry
Thanks for the clarification, now just to confirm, I understand I could do the following:
I have a company which has been inoperation for 5 years with ABN etc.
This company would be the trustee of one or more trusts that hold the assets. I would have 5 assets per trust and simply register a new trust every time.
The borrowings would be in the name of the trust and the asset would be owned by the trust.
When a low doc loan requires ABN reg for over 2 years to obtain an 80% LVR then is it the ABN of the trust or the trustee that matters ?
With regards to income splitting who can the income be shared between ?
Directors of the trustee, adhoc individuals or is there a set list of those that can benefit ?
Thanks
Could someone explain what a “trust/corporate trustee structure” is. To date I have experience with:
Investing via an individual
Investing via a partnership
Investing via companyI have had no experience with trusts to date and am unclear of what they are exactly and how they differ.
With regards to borrowing capacity I understand an entity that has been registered for less than 2 years is restricted to 60% LVR, which is quite low. However if a new structure is registered every 5 deals then people must be getting beyond this LVR restriction… I hope !!!
Thanks
We are just starting in wraps however I am concerned that operating under a new entity would restrict out borrowing capacity.
Our existing company has been registered for 5 years and should obtain finance up to 80% LVR.
Is the Ed Chan structure applicable to smaller players or only those at the top of the market ? Is it common accounting knowledge or would I need to use Ed’s firm as my accountant ?
Thanks
What is the logic behind lenders disliking properties sold under wraps ?
I read in a BLOG that brokers get deals through by simply not telling the lender that it is a wrap otherwise if would be declined, any truth to this ?
I have an existing property financed by the CBA that I am potentially looking at selling under terms, in this scenario would I need to cancel the existing finance arrangement and then refinance or leave the existing arrangements and simply sell the property under terms ?
At the end of the day what difference does it make to the lender and do they need to know ?
Thanks
The reason I wanted to know the daily figure is that I was looking at my CBA loan statement and could not understand how they calculated the interest amounts…
On a principal of 157k @ 6.64% I was charged:
1/9/05 $885.39
3/10/05 $856.83
1/11/05 $885.39Looks like the day the interest is charged corresponds to the closest working day and the 1/9/05 charge must relate to the month of Aug as $885 would correspond to a month with 31 days and Sept only has 30.
Thanks
Thanks Lance and very interesting…
I was looking at the CGU site and couldn’t find any reference to wrap deal insurance. Is it under landlord or similar or am I totally in the wrong place ?
Thanks Richard,
I am guessing that this is a standard situation and this is the normal solution.
As the wrappee is not a tenant then I would expect a standard building policy to apply and then the wrappee would take out their own contents cover to insure their goods if they so wished…
Once again thanks
