Hi Steve

We always check that our Trust Deed list of beneficiaries includes our associated companies.  Then, when we don't want to make a distribution to any individuals for tax reasons, we can distribute to a company and only pay the company tax rate (currently 30% and possibly reducing to28%).

The ATO has recently tightened up on this movement of funds out of a Discretionary Trust into a "bucket" company but, from my reading of the new rules, it still looks worthwhile.

As always, don't rely on this information.  Check with your accountant or other appropriate professional..

Cheers,  Paul

Hi Terence

In what capacity would you like to involve your Father?  Appointor, Guarantor, Trustee, Beneficiary, etc?  If it's as a Beneficiary then I don't believe he has to be an Australian Citizen.  However, as always, check with your accountant/solicitor.

Cheers,  Paul

Hi Matt

A bunch of vendor financed properties are listed at:
http://www.renttoownhome.com.au

I have no affliation with the site, other than listing our properties there from time to time.

Cheers,  Paul

Hi Christian & Grant

Christian, we are based in Port Stephens, NSW.  However, at the moment we are working on transactions in Nambucca Heads, NSW and Morwell in Vic.  We're also just been asked about Townsville, Qld and the ACT.  We don't limit ourselves to a specific area.

Grant, from a risk mininisation point of view, we believe it's important for our JV Partners to have their names on the title of the property.  Therefore our JV Partners need to qualify for their own loan, i.e. they borrow through the traditional residential lending market.

Cheers,  Paul

Hi Christian

We charge our new buyers $980 to have the Instalment Contract drawn up and sent to their solicitor.  Yes an Instalment Contract can be exchanged with an existing mortgage in place on the property.

Cheers,  Paul

Hi Rhenry

I've responded to this post in the Creative Investing sub forum.

Cheers,  Paul

Hi Rhenry

We have done a lot of Lease/Options in our Vendor Finance business but, over time, have drifted back to Instalment Contracts as our favoured vendor finance technique.  This preference mainly revolves around the extra security an Instalment Contract gives a buyer, e.g. the government regard it as a real sale because they pay the FHOG to eligible first home buyers, buying their home this way.  Land Tax also disappears when you use an Instalment Contract, as the Government regard you as having disposed of the property.

For the property you mentioned, I'd probably sell it with an Instalment Contract, along the following lines:
Sell Price – $150,000
Minimum Deposit – $15,000 (FHOG may be used as part payment)
Term – 30 years
Interest Rate – 7.5% variable (initially)

Resulting Buyers Payment –  $217.83 plus approximately $40 per week for Rates & Insurance.

This would mean that your cash flow would be $943.94 per month.  Plus approximately $173.33 to pay the Rates & Insurance on the Buyers behalf (they are responsible for these costs and all maintenance costs).

I'm guessing that you're paying approximately $534 per month for your existing mortgage so, in this scenario you could expect positive cash flow of approximately  $409 per month.

This transaction would give you three point of income.  The $15,000 deposit up front.  The $409 monthly positive cash flow. The back-end profit, i.e. the difference between what you bought it for and what you sold it for, less what the buyer has paid off, between when they moved in and when they sell it or refinance it.
 
We have found that buyers feel more secure knowing that a real Contract of Sale is being used.  We also like the fact that, because no Lease is involved, we are not bound by the Residential Tenancy Act.  Also, with an Instalment Contract we tend to get purchasers with a "buyer's mentality", whereas with Lease/Options we're still confronted with a "tenant's mentality".  Vastly different in our experience.

Cheers,  Paul

Hi Max

Three off the top of my head are:
http://www.owner.com.au
http://www.yourestate.com.au
http://www.diysell.com.au

If you are prepared to leave some money in the sale, by making some vendor finance available, the following site might help:
http://www.renttoownhome.com.au

Cheers,  Paul

Hi Allison

I'm thinking more along the lines of House Call but I notice you mention that the commercial property "would also cover it's own expenses" and, I guessing this situation would make to feel more comfortable with the extra debt.

It is possible to find residential property that not only covers expenses but also puts money in your pocket each month.  This would leave you in a position where the new IP would not only pay for itself but the extra cash flow would help you with the $225,000 debt on your PPOR.

Cheers,  Paul

Hi BB

Welcome to the forum.  Hope you enjoy your time here.

Another idea would be to redraw the equity out of your current Home near Bundy, as a deposit for an investment property in SEQ, e.g. find a SEQ property, use your home equity to put down a 20% deposit and finance the rest of the purchase price with an 80% LVR loan (+ purchase costs).  Then rent the SEQ propertty.  This now leaves you with two properties with capital gain potential.

There are specailists, like Richard and Terry, on this forum who will be able to help you with this strategy.

Cheers,  Paul