Forum Replies Created
Matt & Richard, thanks for your replies.
OK, sounds good… I am an Australian citizen but will be relocating to UK next year. Now will any bank that offers 95% or 90% LVR lend to an Aust citizen living overseas at the same LVR, or are some banks better to work with while in this situation then others?
Thanks
Sebastian
Hey Everyone,
I understand that whilst living OS Australian Banks will only finance 80% LVR on Australian properties. Is this correct?
Thanks
Sebastian
30CH,
Took your suggestion and did a google, and yes “Trustee is legal owner” sprung up everywhere. This leads me to question, what are the asset protection features of a trust?
Thanks for your comments everyone.
Sebastian
Coastymike & Cata,
Thanks very much for your posts, this reafirms my original understanding and also means I am not going crazy.
Now, this APS also suggests that only 2 – 4 properties be held in each trust (in order to limit exposure) Now if the $2 corp trustee is the only entity that can be sued then it should not matter how much property you have in a single trust, it cannot be touched?!
Cata,
I would be interested in showing you what I have and discussing with you what you can offer me in term of structure. I will email you.
Thanks
Sebastian
Thanks, found some good posts in the guru watch section…
Terry,
Banks in Poland for example do offer loan products to foreigners who need to meet tighter conditions to satisfy the banks. One of which is a minimum of 20% – 30% deposit.
I have a friend in Poland at the moment who I’ve asked to check these conditions out for me, but he is dragging his feet somewhat. I think I’ll try to communicate direct with the bank.
I also stumbled upon an American in Poland who is a buyers advocate for foreigners, however his fees are much more then what I’m willing to pay.
Places I’m looking at are around $80K AUD and are positive. So repayments are not when not rented out. One thing I have not got my head around is what currency to borrow in??
Dr.X,
At the moment I am looking at Poland. But I am not necessarily limiting myself to this country.
We have a chris batten suggested trust structure with:
Hybrid Unit Trust holding commercial property
Hybrid Discretionary Trust as single unit holder of the HUT.
Loan in my name – to purchase units in the trust.
Trustee’s and in both trusts include me.apapworth,
I was just reading your post because I also have a Chris Batten HUT. However you mention above that the HDT is the sole unit holder in the HUT, therefore none of the profits can be distributed to you personally because you don’t own units in the HUT.
Also, if you are not receiving an income from an inverstment can you claim an expense? i.e. profits from HUT go to the HDT (not you) But you claim interest from the loan that you took out to purchase the units? (which are not actually in your name)
I hope this makes sense!!
Regards
Sebastian
Thanks Woodsman, thats good news!
Don’t worry about my first question, found a thread asking the same question a few doors down.
Sebastian
Oakley,
Thanks for your input. I’m registered for a “how to buy a business” workshop on Thursday so hopefully this will answer many more of my questions.
Sebastian
Hi cam245,
I do have 2 houses with equity, so the security side of it is not so much of a problem. What is more of an issue that I need to address is the serviceability of the loan.
Would the banks take into account the net profit of a business when assessing serviceability? For example, when you purchase a new investment property, you state the rental return and the banks take into account 80% of that into the servicability equation. Does this work the same for the purchase of a business?
Thanks
Sebastian
Thanks Terry,
The entry is due to be deleted in June 2006, so it happened 3 years ago.
and the amount is for ~$2000. Not too sure how soon it was repayed but the person was out of the country for 5 months and was not aware these debts where being made at the time.I feel the case is strong, so we’ll put it to them and see what happens.
Cheers
Sebastian
Thanks for the replies people.
I had ordered my CRAA file from Baycorp some time ago and it came up squeeky clean.
I’m trying to learn as much as I can about finance and the processes involved, after a recent decline I want to make sure that my financial position and how banks etc view my situation is the best I can get it so that I don’t have to face another rejection!!
Stu,
Hi!! So I gather from our past discussions and what you have posted here, when it comes to events in your financial history, lenders only ever look at the last 6 months. Am I correct in saying this?
Terry,
When dealing with Mortgage insurers, who, use their own criteria which you must meet, is there a certain level of flexibility in terms of explaining your situation that may sway them? Or is it rock solid, you must fit in their formula or no finance?
Thanks guys
Sebastian
Well, I’m gonna jump on the band wagon also!
Prosolution, is exactly that pro!
I’ve spoken to a few mortgage brokers and no one has come close to Stuart in terms of service, professionalism, and knowledge.Keep up the great work Stuart and Josie, and congratulations on the national finalist award!
Sebastian
Melbear,
Thanks for that…. but then that of course leads me to the same question breakfree has posed.
This is not something I am toying with just exploring avenues and creating discussion…. of course always seek professional advice prior to taking action!
Thanks Again… I, as breakfree look forward to your response!
Seb
aussiemike,
I am not talking about adding or changing beneficiaries as I know this will lead to resettlement of the trust and hence CGT and stamp duty events taking place.
Terryw,
Thanks for the links, I will look into them once I have some more time.
agent smith,
I have not purchased any property as such, just exploring an avenue more than anything else.
How about this ppl.
Have a unit trust as myself and a unrelated partner as 50/50 beneficiaries and also joint trustees (I know this is not ideal situation). We are both appointors of the trustees also.I think what is at question is what is on the title deed of the property? If the trust then it should not be a problem in firing the trustee(s) and appointing a new corporate trustee, because the name on title deed of the property does not change, but if the trustee is on the title deed of the property then I imagine it would trigger CGT and SD events as that name will effectively change.
But it is the trusts name on the title deed is it not? I think I have answered my own question!
Don’t mind my ramblings!
Thanks all
Sebastian
Thanks guys.
Yes, I beleive it is the same for WA, re: confirmation of name 28 days prior to settlement. So this works well for me.I made an offer last night, the agent was a bit reluctant to accept as name and/or nominee, but then informed me that I have 28 days prior to settlement to confirm.
Thanks Again!
Sebastian
Thanks aussiemike,
May sound like stupid questions, but I want get as best of an understanding of this as I can!
I will definately be going through an accountant, as they may be able to bring up situations etc that I may have not considered.
Do you know if I can get a hold of a basic trust deed so I know what they look like and what is on them? Just to satisify my own curiosity!
Thanks for your responses!
Sebastian
aussiemike,
You say basic legal documents. Is that to say they just use basic templates and that the trust deed or whatever you are need would more than likely need to be added to by your solicitor or accountant to “personalize” it for your situation??
Has anyone used these services and are happy with them?
Regards
Sebastian
I have not done this myself, but have spoken to people and have friends who have, but international students are ideal for student accomidation. More particuarly asian students, who are very quiet , studeious, clean and do not party it up as much as other students for example.
A friend of mine has a property in Como (Perth) close to Curtin University. He rents 5 rooms out to asian students at $100 p/w each and never has problems. I’ve been in there and the house is spotless!! The best thing also is he is getting $500 p/w on a $300K + property.
So yeah, student accomodation can be good, but you have to be careful.
Sebastian
