Bill

You name the odds i will accept them.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Rodster

Whilst we are Qld based we normally charge $300 for the initial consultation which can be by phone, email and then $220 / hour.

Feel free to email me and i will direct your enquiry onto Steve who looks after all Trust enquiries.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
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Jason

I think after reading your post several times i now understand it.

Firstly may i ask where you would obtain 8.35% return on a short term fixed rate. I assume that you are referring to first mortgage lending or similar investment that carries with it an element of risk.

Lets assume that you can get around this.

You may then fall foul of the ATO’s “purpose test” by using redraw and maybe better to establish a separate line of credit to access your available funds.

After doing this you are right you will be required to pay tax on the profit. Using your example your tax would be payable on the additional $185 of income and would vary depending on your marginal tax bracket.

All in all with possible set up costs i think you would ask yourself the question would you bother for a net amount of around $100.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
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David

The normal set up is exactly as you have suggested.

Use a line of credit secured against your own property and then obtain funding on each security to a level of 80% of the purchase price / valuation.

Depending on property valuation and the price of those properties you purchase you maybe limited to the numbers you can do.

We have to date completed 126 and hate to tell you its about putting in hard earned cash and other security when the line of credit on your house is used up.

Cheers Richard
[email protected]
http://www.fhog.com.au

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forextrader

With a UK background and still many properties in the SE would like to be of assistance.

We have wrapped over 126 proeprties ourselves and would love to assist some fellow Poms if they are looking at purchasing in Qld.

Feel free to checkout our website.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Murmur

Why not try St George Bank or Pepper Home Loans both who offer 100% lend.

Cheers Richard
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http://www.fhog.com.au

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First Timer

I think the figure Leigh may have given as the cost of setting up a Trust may have been a little high.

You are looking at around $450 for the setup costs for a Trust however maybe another $1000 if you are going to use a Company vehicle as the Trustee.

Feel free to email if you want any other quesions answered.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
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To all of you to whom we have offered our services to in Rocky what have we been telling you for the last 6 months.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
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Hi Jackie

Sure Steve won’t mind me answering a question addressed to him from my personal experience.

We have to date completed 126 wraps and have them all arranged on a stand alone basis with 3 seperate Banks.

By avoiding xcollaralising them firstly you are not breaching the Property Act (only applicable if you are reselling them under an Installment Contract) and secondly if your wrappee decides to refinance or sell then it is easier for you to administer.

I guess if you have several -geared properties then you could consider utilising the equity in one property and offering that equity to your financier to purchase other -geared properties. It’s a personal opinion.

You can always arrange to have a property released subject to valuation if you decide to wrap it or sell it later down the track.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
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Cheryl

Don’t let the comments abount 65% being the maximum loan you can obtain in rural locations deter you from investing in regional australia.

Whilst, I agree that might be the lending criteria
of a few lenders in the whole depending on the land size most will go upto 80% and often higher.

Just feel free to bounce your ideas off one of myself or one of the other Mortgage Brokers on the site.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found