Forum Replies Created
Anyone please??
With 42 thousand subscribers somebody’s got to know this!Hi Wassa
You should try and make the best of the worst situation. Maybe worth considering selling one property that has appreciated in value and one that has depreciated in value. This way you can realise some funds to pay for your shortfalls and offset the capital gains of one property with the capital losses of the other and minimise any tax implications.Cheers
PyramidHi Paul
In response to your question
“In your Disadvantages list you mention; “First home owners don’t benefit from stamp duty exemptions as it is paid for by the Wraper and passed on as a closing cost”In NSW wrapees receive the stamp duty exemptions and access to the FHOG on exchange of the Instalment Contract (if they are first home buyers).
Would you mind explaining what you mean by; “as it is paid for by the Wraper and passed on as a closing cost”?”
In NSW, if I buy a property for a wrapee, say for $300k, I will have to pay the stamp duty on it (say $8k). So my closing costs will be $308k plus other costs. Say, I add my mark up and onsell the property on a wrap at $340k. The wrapee (FHOG qualifier) does not pay a stamp duty on the $340k but has in effect paid it on the original purchase of $300k. Hope this makes sense.
Cheers
PyramidHi Lawrence
Many thanks for your offer to answer more questions on this. Interesting to note your comment about solicitors and accountants offering this type of loan. In my pursuits for wrap clients, I have been approached by a solicitor to offer this kind of finance to his clients/contacts as an alternative to vendor finance. The proposal is I provide the short-term loan for a 3-4% monthly interest, the solicitor charges the borrower for setting up the caveat, etc and also gets a referral fee from me. The solicitor says that he will screen the clients, etc. so as to minimise my risk. What do you think?Cheers
PyramidThanks everyone for your comment. Your advice has stopped me from entering into a potentially expensive exercise.
Cheers
PyramidGood try Martin, but why would Steve disclose his target market for the world to see? I surely would not tell you where I was investing on an open chat-line and open the flood gates to competition
Cheers
PyramidRichard
What is a shared equity scheme? How does it work?Cheers
PyramidHi Paul
You have finally hit the nail on the head. This is exactly what I needed to know. I will of course check with a wrap saavy lawyer – but I ca now go in better informed.Really appreciate the straight answer
Cheers
PyramidHi Paul
Thanks for your response. It all makes more sense to me now. I am new to WRAPs and do not have a WRAP savvy lawyer. Do you have any suggestions for Sydney based lawyers?Cheers
PyramidRichard
Many thanks for your post. I apologise for the ambiguous question. Allow me to clarify.
As I understand it, a first home buyer in NSW can qualify for the First Home Owner’s Grant and also First Home Plus.
The First Home Grant is usually paid to the buyer upon settlement. In a WRAP situation, the settlement may not occur for another 20 years or so. Is there a way for the buyer to access this earlier?
Similarly, stamp duty is also paid on settlement. How can the buyer bring this forward in a WRAP contract?
And finally, with a WRAP (or vendor finance), how is mortgage duty addressed especially when the vendor is not an approved financial institution?
Any light you or anyone else can shed on this will be most appreciated.Pyramid
