bouzo

Would need to now more about what you are after first.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Not sure if this is right but this is my understand of selling to a trust in your case. Selling to a trust would be purely on paper so I imagine that you would have to sell at market rate, eg 165k and pay capital gains AND stamp duty on this, then you would sell to purchaser at around the same price, unfortunately the benifit is lost as your purchase price and sell price in this entitiy is $165k leaving with a gain of $0 and therefore nothing to distribute to the benificiaries.

The sale to a Trust or a Pty Ltd Company is exactly the same as a normal on market transaction. There is no purely on paper about it. Admitedly there might not be a full Sale Contract but a Standard Form 1 Transfer is required and the OSR will use a letter from a local Real Estate agent to assess the Duty charged.

Then I cannot see why a second sale is required? The property once sold is held in the name of the Trust and there is no need to sell it to the purchaser (who is presumably a Trustee / Beneficiary).

Finally in 20 years of dealing with Trusts i have never seen a Deed that requires the Beneficiaries to stand as Guarantor in the event of the Trust making application for borrowing.

Can you image the Bank trying to send Guarantee documents to long lost Uncle Joe in Brazil you was one of the named Beneficiaries.

All i would say is you are after advice get the right advice before you act on such a transaction it could be an expense mistake if you get it wrong.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Ritch

Would need to now more details to advise you fully but it is not easy we arrange loans for clients all over the world inclusing NZ.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

The ATO “Purpose Test” would apply and the interest charged against the additional borrowing would be Tax deductible.

In addition, any costs or charge associated in setting up the facility and the mortgage Stamp Duty would also become deductible albeit as a loan cost and deductible over 5 years or the term of the loan if shorter.

Whilst, it is imperative to keep the account separately you may wish to link up a offset account rather than a LOC dependant on the two rates of interest.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

You find the securitised lenders that offer NODOC loans are not very attractive on their Fixed rate loans but a LODOC loan you should be able to negotiate the same rate as a fully verified loan

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Hi Kiwi

I think the theory is correct but maybe the numbers are not.

Lenders will go upto 95% LVR of an existing property but will want to have the loan mortgage insured which will involve a 1 off premium deducted (sometimes capitalised) from the loan amount.

It is for this reason most investor try and keep the LVR to <80% to save on the premium.

You would therefore utilise the equity in one property to fund deposits and costs in another.

i.e Property value – 250K x 80% = $200K – existing mortgage $80K which leaves $120K. Assume that the new IP purchase = $250k as well you would take a loan of $200K and add $50K plus acquisition costs from the first property.

This leaves $120K – 50K – $10 (assume acquisition costs) $60K to be used on the next IP property.

If equity is tight then you may need to go to 90% / 95% LVR to purchase your IP.

Structure is also important as depending on your circumstances you might with to purchase IP’s in Trust with an individual or Corporate Trustee.

Easiest thing is to get a independant broker to go over the figures and make some suggestions to make sure you are set up properly.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Totally agree with Stuart many of the deals we do are back with the client’s own Bank.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Precisely

Is anyone aware of any lenders who will go lo doc no doc to 80 # without mortgage insurance and there rates.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

ET

The difference is if you approach the Bank direct they will merely tell you what they can offer you and not whether you could do a whole lot better elsewhere.

A independant Broker can look at your whole situation and make recommendations to suit you now and in the future.

It costs nothing to get good independant advice so why wouldn’t you.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888

Solomon

I successfully closed on over 64 loans in the US last year for both Australian and British Citizens purchasing in the USA and have significiant property interests there myself.

Feel free to ask away.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888