A straight forward no!

Without the ability to pay the loan back it would be a breach of the nccp act for a lender to lender you money.

There is no real difference with structuring loans between negative and positive cash flow property. You should still borrow 104% and avoid cross collateralising securities.

For the trusts this is a complex form of legal ownership which you should seek legal advice on.

I am made a thread here on how trusts can improve borrowing capacity. See…[Read more]

Convert it asap and ask for it to be back dated from when you moved in.

Such a contract could be legally binding.
And you would be entitled to recover your share of the profits from your brother – he would be holding them on constructive trust for you.

But complex and expensive to enforce, possibly.

You could also enter a co-owners agreement which is a contract on how you will pay for expenses and other things…[Read more]

Such a contract could be legally binding.
And you would be entitled to recover your share of the profits from your brother – he would be holding them on constructive trust for you.

But complex and expenses to enforce, possibly.

You could also enter a co-owners agreement which is a contract on how your will pay for expenses and other things…[Read more]

whats the cost?

Not much you can do really other than run thru a property manager. Just contract with the agent that he pays each to each of you via a separate bank account and also that all important decisions are only made with unanimous consent.

Not much you can do really other than run thru a property manager. Just contract with the age that he pays each to each of you via a separate bank account and also that all important decisions are only made with unanimous consent.

A good source for legal books are the uni second hand bookshops. They have heaps of previous edition books cheap – but still very up to date.

Then just read articles on law firm websites and get on a few mailing lists. Also read the forums.

There is nothing really advanced out there but you could start getting technical by reading tax articles and rulings etc and law articles in relation to the legal and tax aspects of property investing.

There was an article in the newspaper today about Rick Otton, a promoter of vendor finance strategies.

It is an interesting read:
http://www.abc.net.au/news/2017-08-11/buy-a-house-for-$1-claims-slammed-as-deceptive-misleading/8798492

CGT probably would not apply in this situation – just income tax.

It would be difficult. A SMSF cannot borrow unless the asset is held by a custodian trustee. A SMSF trustee can borrow up to 80% of the property value but it cannot borrow to improve an asset.

You will need to seek specific legal advice on how to structure something like this.

Just make sure you get good legal advice along the way, otherwise an unexpected stamp duty bill could turn a profit into a loss.

Good on ya!

A SMSF and a member can jointly purchase property together as tenants in common. Or both could be unit holders of a fixed trust.

A Joint venture is possible but they way you described would breach the sis act.

The stamp duty will depend whether it is a dutiable transaction. If there is a contract to purchase land, an option or an assignment etc it would be a dutiable transaction and duty would be payable.

If you don’t have any of the above how will your secured you profits?

it could work in theory, but what stamp duty savings!

I would say it would be extremely difficult to find an owner to agree and it would be risky to renovate a property you do not own.

What do you want to know? I have done a few vendor financing deals before but probably would not do again.