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Check out the vendor finance website for a listing of solicitors in all states and territories…
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MelI think for No. 1 the land value is apportioned across the blocks, and if you sell the new house you will pay CGT on all of that.
If you don’t want to pay CGT, move into the new house, and sell off the front house…
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MelSonja
If you’re going to deal direct with your bank – make sure you get someone who does have discretion – they do exist. Just go higher I guess…
there is not much point trying to explain it all to the branch manager if he/she cannot make the decision and has to refer it higher – or just say no!
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Melfjifcm, following on from Acey’s points, you could then offer the properties as security for the trust to borrow 100% loans. This will aid in your asset protection, as your properties in your name are now pretty much fully encumbered by the bank..
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MelLifeX
An offset works in a similar way to a LOC – I don’t think you would want to have both. I guess an advantage of an offset account over a LOC is that it is generally a cheaper interest rate (0.1%).
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MelThat’s a good point Chan$.
So we say thankyou to Guru Muppet for posting here also[biggrin]
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MelThanks Chan$. I was hoping I might get different coloured stars – but not to be[ohno]
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MelJames
I’m afraid that the tax lien properties are an American ideal. I have however seen a council sell off some properties for unpaid rates, which I guess is similar. However, there were only about 4, and at least one of them was paid up before the auction.
I think you need to get in contact with Real Estate agents, and maybe some bank managers etc. to see if they know of any clients that may wish to sell quickly for a drop in price etc. Other than that, it’s going to be all research for you.
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MelHi
You count the deposit as an asset because it’s showing how much you put into the deal yourself. The cost is obvious I would think – to show what you paid.
If you didn’t have the down payment in, you could work it out by subtracting the loan balance, but it’s simpler to be able to look at it in the one line – esp as there are various downpayments on similar priced properties.
Say for instance you were in deep trouble, and had bought 2 2/1 houses for $55K each. One down payment was $7K, and one was $2K. You need to sell, and don’t really want to sell both if you can help it. You are offered – $55K. At a glance, which would you sell?
For me, the one with the $7K down, as you know you’ll get this back.
Hope this helps – it’s my reasoning behind it anyway!
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MelWhy are you paying the lawnmowing fees already?
I would say to the tenant that it will be an extra $20pw in rental to cover lawnmowing. If they are willing to mow the lawn themselves, then there is no increase.
I seriously don’t get why you’re paying for it now…….
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MelSam, for the first home buyers to get the discounted stamp duty, I believe Mr Egan suggested they ask their vendors to ‘rip up’ the contract and do a new one. This says that if contracts had already exchanged, they did not get the discount.
I would say that this is the same in your case. ie, you got in first![biggrin], so no stamp duty on exit for you[suave2].
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Meldarlen, why don’t you contact Mortgage Hunter?
He rents to uni students by the room in Newcastle, and has them lined up waiting. He charges half rent to keep the room for the student for the next year, and I think most of them take him up on it.
As for individual locks – I think that’s a must!! Cable tv – not so important as internet for Uni students I think.
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MelAlan
Instead of being up for all the transaction costs (CGT for the trust and therefore YOU), stamp duty on buying etc. etc., is there anyway that you can make use of the equity, and invest the money in such a way that it returns you $$ per week, and makes you not so reliant on a pension?
You could also ‘rent’ the house from the trust – thus creating more income for it when it comes to servicing loans. Lo Doc or No Doc loans should be possible for your company as trustee……
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MelGood call magpie.
Milly, the advantage in magpie’s suggestion is that if you sell off your current house and move into the new one in the ‘backyard’ it will be CGT free. You might be able to sell it and lease it back from the owner for 6-12 months while building the new house if you need the money to do so.
Re Marc’s comments – I’m assuming your ‘advantage’ of being widowed was said somewhat tongue in cheek?
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MelHi guys
From what I have picked up from Russ’s posts, this is his first deal – other than his PPOR. As he states he’s on a pension, he obviously doesn’t have any disposable income to spend on a high growth -ve property. I reckon he has made a great start. I see that he’s also found a second property.
Once he gets his 10th, I reckon he might come over to the dark side and think about buying one of those alligator properties he hates at the moment, as his other props will pay for it for him, and he’ll get the ‘burst’ of equity from it to build his ever increasing portfolio.
Russ, waddya reckon? will you ever come to the ‘dark side’ of growth properties?[evil4]
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Melkc26, if you search for Jan Somers you might have better luck[cap]. Building Wealth through Residential Property and Story by Story (can’t remember that exact title though).
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MelNo idea where he is, but Bruce Whiting from http://www.mintgroup.com.au does investing and accounting (that is he talks to the Kiwi accountants) on both sides of the Tasman
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MelHi Ace and welcome
Do a search for posts by Summo – he organises a Adelaide Investors Group meeting. You could meet up with them for a start…
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MelI think Rick Otton sells the signs – from a post made by Steve a couple of weeks ago….
Somebody else knows the manufacturer in that post too. I’ll have a quick search for it….
Found it!
https://www.propertyinvesting.com/forum/topic/9287.html
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MelOriginally posted by Aceyducey:
The appointer only appoints the first Trustee – who then controls what happens in the Trust. So it’s not that important. We tend to not be the appointer in our vehicles.Acey
Everything I have read contradicts this comment.
Quoting Dale GG in Trust Magic, p26 (available from http://www.gatherumgoss.com):
The APPOINTOR
This is the most powerful person within a trust structure. The Appointor’s role is to appoint and ‘sack’ the trustee of the trust. Therefore, it is important that you control the trust by being involved as the Appointor.For example, let’s say that you have a trust that owns $10 million worth of property. If your accountant is the Appointor, he/she can sack you as the trustee and take control of the assets of the trust by appointing their own company as the new trustee. This could lead to you losing all of your wealth through a very carelessly created trust.
Be careful and do not allow anyone else to have the final control of your assets.
Cheers
Mel
