Forum Replies Created
So, the restrictions are Council based and NOT state legislation.
Is this correct? I will discuss with my local council since I’m thinking of doing a similar property conversion.
Thanks!
crj is correct. The difference is due to the medicare levy of 1.5%.
Say, for example that I am an employer, and that I took out for you $5,532.00 a year as PAYG Withholding Tax.
You would still be liable for the $468 when you lodge the tax return.
So, based on the ATO tables, all the tax liabilities are paid for in advance which should result in a nil or neutral tax position.
Assuming no extra income or deductions, of course. [cap]
Thanks for all the info!! [biggrin]
One last question….
Say, if I got the property financed as follows: –
Vendor finance $100,000
Bank loan finance $ 50,000In this case, the vendor amount is more than the bank loan. How would this affect the title?
It seems to me like a wrap situation where the title remains in the hands of the vendor until the final payment.
Now, the “silly” question…. [blink]
If the above case is true and I bought the property using a wrap from the vendor…..
Can I then go ahead and wrap the wrap to another person?
I know this is stretching it… But I’m just a really curious guy! [buz2]
So, its basically “do at your own risk” scenario.
Thanks for the info! [specool]
Thanks, terryw.
About the title, does the vendor finance portion have to be lower than the bank funded amount?
And, what is an instalment contract? My inexperience in the real estate field is really showing. [laughing]
So, say, I finance a property using a normal bank loan.
If I then decide to wrap it for someone, does the bank need to know or find out?
As far as they know, I’m still renting it out right?
Okay, please pardon my lack of experience but can I please confirm a few items.
Does the financing arrangement include purchasing the land & construction? Or just the construction?
What about instances where you purchase a property (house + land), demolish and rebuild?
kwilko, you mentioned that the personal income tax returns, etc. for the directors/owners of the company is required.
Does the finance company do credit checks on the individuals as well? Or is the application assessed based on the profitability of the project.
Thanks!
Interesting stuff, guys! I will make sure to print this thread out for filing. [cap]
Regarding miracle’s comment about “small projects”, what is the private financier’s definition of “small”? Is there a standard development value?
It’s all starting to come together…
Whilst I was working in Chartered Accounting, I came across a few clients who financed several development projects. I could never understand how they could possibly charge interest rates of 20% to 25% and still get a share of the profits.
Now I know, thanks to you guys!! [aacool]
The book “Don’t Sign Anything” by Neil Jenman was useful to me.
But it’s not a legal specific book. It basically tells you all the scary tactics used by agents and what to be aware of both as a buyer and seller.
I am thinking of buying privately too preferably with vendor financing by the seller. But I’ll be leaving all the legal stuff to my solicitor. [blush2]
Thanks for all the info!
Whilst it is expensive and possibly troublesome, its good to know about these alternative financing arrangements.
How do traditional banks view contruction & development finance? Obviously these finance companies exist because of a niche which banks don’t to lend to.
Thanks for everyone’s input!
I am currently negotiating with the c/c provider to have the default removed. Worth a try… [biggrin]
Anyways, its good to hear that at least I’ve still got a way to start in property. Even if it is at a higher interest rate.
The amount was $5K. This is no excuse but I was in the middle of arrange a personal loan to pay it off when delays caused me to past the 60 days due date. [ohno]
Anyways, I don’t have a written instalment plan with the financial provider as yet. I was going to just budget myself and stick to a strict payment plan.
Would it be better if I arranged for a formal instalment plan?
