Kurt

You certainly wouldn't need or want to set up a Business to buy your future IP's unless of course you are wrapping or providing other vendor finance offerings.

Establishing a Trust structure has many pluses and minuses but cost certainly shouldn't be a deterant.

For a standard Discretionary / HDT / Unit Trust we normally charge around $600 and if you wanted a Corporate Trustee then you are not looking at much more again.

Asset protection is one aspect however income distribution once the properties become + geared is another.

It is horses for courses and there is no right or wrong answer. I have a substantial portfolio and hold my properties in a variety of Trust structures but this is not for everyone.

Hi Ivan

Feel free to shoot me an email with his details and I can rustle up a quote for you.

Compare this with the Bank's FP. Just bear in mind I am independant and they mabe tied to a particular insurance company meaning you will not get the choice of policies.

For Term Life / Trauma would just need date of birth, occupation, smoker ? i can then give you some Trauma options. 

On the loan front remember that it is 12 months in Qld to qualify for First Home Owners Stamp Duty concession.

Hi Matt

No problems, give a very good mate of mine Keith Clarke a call.

Keith is the principal at Mayfair in Clayfield and can check out anything for you in any area.

His contact number is 0411 516259.

Tell him i sent you and he will look after you.

Also dont forget there are also lenders who will fund the deposit on an IP for you.

Whilst the interest rates maybe xxie if it is only for 5% plus acquisition costs you could move ahead a lot quicker.
Give us a shout if you need any further help.

Ivan

Good to hear he secured the 80% LVR must admit i though he was buying it as a PPOR.

Firstly Mortgage insurance is a tax deductible expense (over a 5 year period or the length of the loan whichever is the shorter) and not all lenders charge LMI over 80% LVR.

I would have probably gone 100% LVR interest only with an offset account and she could have covered his Transfer stamp duty  which is not Tax deductible and oly to the Cost Base in the case of a sale.

In the absence of doing this as Scott has mentioned then as long as it is fully documentated (The Solicitor should be able to do up the mortgage and loan documents) he should be ok.

Also remember in Qld stamp duty is still charged on mortgages and any income his mother receives will need to be declared as income when she lodges her Tax return. Make sure she has a separate account so to be able to distinguish what relates to what.

Hi Get rich

Firstly welcome to the forum and I hope you enjoy your experience.

Whlst i dont intend to comment on the area as i dont own anything presently in Victoria i would comment on the structure and the way in which you shoulkd consider funding a deal like this.

Firstly the initial acquisition is going to be a PPOR at least for the first 12 months and then eventually a IP which you will rent out and claim tax deductble expense against your income. You also mention that a new addition to the family maybe not be too far away.

If this is the case certainly do not put down half of your funds as deposit as once the property becomes an IP only the interest on the outstanding amount will be tax deductible and you are unable to redraw to use as deposit for the PPOR you wll purchase from your inlaws.

Dependant on whether your wife will have time off work once the baby arrives would determine whether you would purchase the first house as Joint Tenants or Tenants in Common. With regards to the loan structure you should be looking to borrow as much as possible (95-100%) should be achievable on an interest only basis with the loan linked to a 100% offset account. You would deposit your funds into the offset account whilst the house is an IP and then use the funds as deposit when you purchase the Box Hill property.

Certainly a little bit of loan structuring will enable you to borrow the maximum amount for your IP and reduce the non tax deductible  amount when it comes to your PPOR. Remember getting it right now will help you fr years in the future.

Feel free to drop me an email if you need further help or assistance. 

Just to echo the previous comments about financing studio apartments make sure you dont buy anything under 35 square metres unless you are prepared to come up with 30% deposit +.

In relation to a studio apartment you may find that the mortgage insurer will not provide cover even though your lender may accept the security.

Why not negotiate a 2nd mortgage carry back deal on a house here in Brisbane.

With something in a good area you should find that  you have good capital growth as well as a good rental yield.

I work with a good agent here in Brissie so let us know if you want a good recommendation.

Hi Blaze

A vendor has the same responsibilities to settle as the purchaser does and in the event that you are unable to settle you should get your Solicitor to advise them that you intend to charge default interest as per the contract.

In addition, look at specific perforance remedies. 

You could of course terminate the contract and then renogotiate at a lower sale price or merely walk away and buy something else.

For an Accountant why not contact my Accountant Steve Hodgkinson who is a partner at the Gold Business Group.

Steve is a forum member and can be contacted on 07-5532 2855

Try him in the New Year when his office reopens. Tell him i referred you as most good property Accountants are not taking on new clients.

H Matt

Hate to say your Broker does not sound like he has any idea of how a Hybrid Trust structure works.

If you are looking at the Brisbane drop me a line and I will introduce you to my Buyers Agent.

I have introduced him to a lot of clients around Australia and overseas and they are very happy with the service and results.