Hi Mike

Couple of options but being this time of night I will be fairly swift:

1) Yes you can claim the FHOG (assuming it still exists in is current form) if all other quailifying criteria have been met. Purchasing an IP first even in your own name does not disqualify you. The Stamp Duty concession is a different matter and will vary from State to State. Check with the OSR in your State on this.

2) No the Trust cant give the guarantee but you as the Trustee / Shareholder can and this is what they will require.

3) In most cases i would advise any client to buy their first place in their own name, structure it correctly, claim the FHOG and SD concessions and then once they have met the qualifying conditions by all means rent the property out and if renting elsewhere maintain this as your PPOR. Future properties can certainly be purchased in an alternative entity.

Hi Jeff

The wrap kit never gave you a compliant Contract for you particular State.

If you email me and tell you what you are after I maybe able to assist.

We still sell our fully compliant Wrap Contract for Qld in PDF format.

You would still get 90-95% but not all lenders will offer you the interest rate discounts you would get if buying in your own name or have a personal Trustee.

Hi Shane

Depending on which State you are in may determine the requirements needed to act as a property developer and whether any particular license is required especially if you intend to sell your own properties.

Other issue you ned to think about is how you will finance these acqusitions as a property developer the loans will be considered Commercial in nature and as such Commercial terms and rates will apply.

Natalie i certainly appreciate your enthusiasm and loyalty but i assure you having sold my own property developments thru TIC between 1996 and 2004 i assure that the bargaining is not done for you.

The Developer sets the minimum price that he / she wants and the "club" take it or leave it.

We had many sales privately in the same complex where TIC where selling our properties which we price discounted below TIC price if the buyer could settle quickly or didnt have a page of Special Conditions.

TIC buyers got what was left.

Hi John

1) In a trust structure is it possible to use the equity of a property for personal use or as a deposit for another IP?
I assume you mean where the property is owned by the Trust can you access the equity. Yes just make sure you split the loans so each can be identified.

2) If the equity can be used can it be used to pay back a debt on an existing negatively geared property to make it positively geared?
Yes but there would be no sense in doing so as the interest on the loan raised on the other property would negate the benefit.

3) Does borrowing the equity from an IP increase the loan repayments of that loan or is it just borrowing against the equity and is a different loan all together therefore having its own repayments?

It depends on how you structure it. You can either incresae the existing loan or take out a secondary loan. The later is certainly a lot cleaner and therefore would have no bearing on the original loan repayments as it in turn would have its own commitment.

No problems Natasha.

My apologies the message only came thru late this evening.

Feel free to call me in the office should you feel we can help further.

As Terry mentioned buying a DFT / Company structure certainly wont aid your serviceability.

However structured correctly and utilising the equity in your own property there is no reason why you cant keep on buying.

Trick is keeping the loans separate to avoid 1 lenders serviceability wall.

Hi Jeff

Which state are you and the property in ?

It is only 2 low if you intend to expand your portolio over the coming years

My current lvr is around 22% but i have no intension of doubling the number of properties i currently own.
Focus is on reducing the LVR and paying down the debt to value ration and picking up a couple of inter state properties either in
my SMSF or DFT for Capital Growth.

It is a personal choice but certainly you will be limited in your growth sitting on a conservative lvr.

YI i would say after 6 months you will be bored let alone 12 lol………….