Hybrid Trust

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

The normal structure we establish for our clients depending on the circumstances is:

1) Interest only home loan linked to a 100% offset account.
2) LOC against the PPOR to 80% LVR to be access solely for investment purposes i.e deposits and acquisition costs.
3) Interest only loan – stand alone against the security of the IP.
held in an HDT.

No loans X Collateralised if possible.

Not all lenders allow this form of structure and the terms, conditions and pricing vary considerably.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Scrub my last post as i didnt even get chance to finish writing so I will start again.

Hi karlm

As a far as I am aware the company which is run by Margaret Lomas operates on a franchise basis so the service and level of knowledge is as you would expect from any franchise – as good as the owners. From a check of the branch owners i dont believe any of them are Licensed Financial Planners.

Why not get an opinion by all means (as long as there is no charge) and see what other recommendations you receive.

I run a boutique mortgage brokerage where we structure and development loans for clients through appropriate entities to ensure that they are suited now and in the future.

Too many MB’s with little experience merely want to receive the commission from doing a loan rather than building up a longer term relationships with their clients.

Might have a few of my clients on the forum here who can comment.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Setting up the Trust is relatively easy subject to a a few consideration however transferring your existing Investment properties into the new trust will be a fairly expensive exercise.

Stamp wil be payable on the Transfer value and you may also trigger a GCT issue so think carefully.

Mayble talk to your Accountant and make sure that furture properties are purchased through your new structure.

Another consieration is so ensure that your loans are structured correctly as well as this can also lead to problems in both serviceability and also if you ever wish to sell one fo the properties in the future.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

CJ

Would be ditching your MB. Think Terry is you man and has explained it very well as usual.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Sorry for the delay in responding.

Interest rate for a lodoc 90 is around 8.20% variable.

If you want to give me a post code / suburb i can check out to see whether it is an acceptable area.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Kjs

No i think you are correct.

There are too many MB’s running around with a handfull of weeks or years knowledge who have no professional qualifications and whose previous occupation could be anything from an electrician to a petrol pump attendant (not that i have anything against either profession).

Most experienced MB’s have been calling out for years for tougher restrictions on Licensing which seems to fall on deaf ears.

Hopefully most clients will ask what the experience of the MB is and make their own mind up as to whether they can suit their particular needs or cirumstances.

By the way some of us are licenced to provide financial advice.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Hi there

Lodoc 90% is available with an ABN for 1 day but i have to say most lenders will have some sort of early repayment penalty if you are merely looking to buy it and then quickly sell it on.

I would need more information to be able to give you exact pricing and costs as most of these lodoc deals are strictly post code limited but nothing is impossible.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Hi Briscon

The recomendation is not for everyone however is 2 fold in its execution:

1) An interest only loan with an offset account involves a lower monthly repayment. When serviceability is tight and a client is looking to increase their wealth through further IP acquisitions the difference in repayment can make a difference in the amount you can borrow.
2) This would have to be the most common question we get asked.

“We are paying off our home loan but have decided to rent it out and we want to buy a new PPOR but havent got much interest to deduct”.

The problems comes in the fact that the only interest you can deduct on your existing PPOR is that charged on your current loan balance. You cannot redraw or increase your borrowing to top up as this clearly fails the ATO’s Purpose Test.

The interest on the new loan you take which will be your new PPOR is not tax deductible and the shift in balance is incorrect.

By correct structuring from day one the problem is alleviated.

There are of course other actions you can do to correct the situation when you have paid of your PPOR and want to rasie money and claim the full amount of interest as a Tax deduction and then use these tax deductible funds as a deposit on your new PPOR and these are covered in our recent newsletter.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Scruff

Switching the loan to interest only will not stop you investing in further IP’s and in fact will probably assist in your serviceability model.

Another important consideration is if you ever decide to move and want to retain your current PPOR as a IP. The Tax deductible interest is lost and whilst action can be taken to reverse this is a relatively expense exercise.

Also check with your Bank tommorow that your loans are not X collateralised as whilst sometimes this is inevitable it will cause you problems down the track with your future borrowing. Needless to say most Banks are keen to get their hands on all of your security.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.