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February 23, 2009 - 4:49 am

As a rule of thumb, if the expected future capital gain is material, I generally advise people to buy in their own name and use a separate strategy to protect the equity.  If capital gain is not an issue, it is probably okay to buy in a trust and get the trust to rent you the property under market rates.  But this will only provide a tax benefit if the trust derives other income to effectively

Hi Eddie i refer to above quote – How do you protect equity in buying in your own name without the use of a Trust for future estate planning.  Also are there any problems if you have say a property portfolio here in Aus and you go travelling for a couple of years while getting your rental income etc.  Are there any  Capital gains tax implications?

February 20, 2009 - 2:41 am

Do you think it is good idea to even pay Interest Only on your new PPOR with a offset attached? I am thinking that is a great idea because you still paying down the principal debt be it in the offset account. You also have access to the equity if you need it straight away.  Instead of reapply for increase on loan.

February 18, 2009 - 5:23 am

So what Trust would you use if you had to sell it to a Trust and needed negative gearing benefits because you were short each month.

Also what bank would lend to the Trust without issues.  I understand you can use a Discretionary Trust but without negative gearing available because of the losses stuck in the Trust.

I am a little while away yet from selling my PPOR to purchase a new PPOR but reading all the problems about Trusts don't know what to do.   As i really want to keep my old PPOR and borrow 100% against it and then purchase a new PPOR.  Though the figures will be short each month I need the negative gearing benefits.

So any ideas?

February 18, 2009 - 5:20 am

Thanks for the reply Duckster.

So what would people do if they are retired and the net rental income is not enough to live off.   Do they have to get another job? 

Do you think Lo Doc or No Doc lending will dissappear forever or will it always be around.  I know of a couple people who are currently living on equity and have substantial portfolio's. 

So I would guess before you left paid employment you would have to have a net equity of at least $1M or more. 

February 16, 2009 - 4:03 am

Yes I believe that they would lend 70% against the Property in VN with 30% deposit and regular income if you are working or have a business there.  So it maybe possible.

February 12, 2009 - 3:37 am

Hi again Plastic I have a question – What if you want to turn your old PPOR into a IP and then purchase a new PPOR.  Would you sell it to a Trust?  What if you had negative gearing attached to it.

Also how do you pay down your PPOR faster.  Do you use a line of credit split with all the rent, salary etc going into this account and then paying the IP loans from this account.

Still learning thanks for the reply.

February 12, 2009 - 3:21 am

Thanks again Plastic I don't understand how they have set up your accounts. But that is great if it all works for you.  Does the structure allow you to pay down your own PPOR quicker?

February 11, 2009 - 2:00 am

Is it worth waiting until you have a few resi properties under your belt before venturing into Commercial property. 

What are the risks with commercial – What if the tenant can't pay and you have a vacant shop or office for 6-12months you would have to cover these costs with your equity.

Does the tenant pay for all the outgoings including rent.   The owner just has to pay the Interest is that correct?

February 11, 2009 - 1:56 am

Thanks for the reply.  But would it be possible that you could afford to service 3 IP's so quickly more than the service they have provided. 

What was the level of service did they discuss structures etc and how to move forward and accumulate.

February 6, 2009 - 3:58 am

Just spoke to RHG they are passing on the full 1% cut but for Lo Doc LOC only .80% cut and not passing on until 23 Feb 09. That is why they are making a profit on our money. Mongrels I hope they go down when everyone refinances away from them.

7 months of pain left!

February 5, 2009 - 2:59 am

RHG Humor

“RHG is in the business of helping people achieve their financial goals and we believe this rate reduction combined with secure funding will help our customers in these difficult times and also place RHG top of mind for borrowers,” Mr Sulicich said.

February 5, 2009 - 2:53 am

RAMS cut by 1% but RHG and RAMS are different companies.  Still waiting to hear from RHG.

February 4, 2009 - 6:48 am

Yes only 7 months to go before i can get away from these rip off merchants – free to refinance and never to return to a non bank lenda again.

February 4, 2009 - 6:46 am

If you wait patiently for a nice bargain a development block for example you can pick one up for  a good price. As long as you don't borrow more than you can afford. factor in rate rise of 2% above what you could afford and if it is okay and you can manage go for it. But don't get greedy and borrow more than you can otherwise you will be stressing out.

Remember it is a marathon not a race to purchase assets for the future.

February 4, 2009 - 5:04 am

Just phoned RHG advised that have rate cut under review will either now this Friday or next week!

February 3, 2009 - 11:59 pm

Thanks Erik great research to be done then.  Would you not be worried if you had a holiday home in France and you lived in Australia or another country.  What if squatters lived in your house you have problems getting them out?

Insurance for anything??

February 3, 2009 - 12:47 am

I heard Tents are going very cheap and fishing rods.

February 3, 2009 - 12:34 am

What areas would you suggest Phil. I heard that the South is quite expensive. Can you just buy old farm houses and renovate and then use as a holiday home.  Do you need to speak the language to get by?

January 8, 2009 - 5:08 am

So what happens if you want to purchase a new PPOR and put the old one into a Trust so you can borrow all the available equity for a deposit on the new PPOR.  And what happens if you are not +geared on the old PPOR (Now IP). What trust would you use if you wanted negative gearing benefits etc a DT or HDT?

December 22, 2008 - 2:30 am

why don't the govt let people save money and earn interest.  the reason might be y people don't want to save is because they get taxed on the interest they earn.

Is that a possiblity?