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I have done both, and agree, LOs seem better for a number of reasons as you mention.
I think previously people wrapped as the ‘tenants’ were able to get the FHOG straight away (in some states anyway). Don’t know if this is still the case.
Terryw
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What state are you in?
I was suggest you just go to a solicitor that specialises in this area for teh paper work etc.
I suppose in the meantime, you just have to consider the structure and figures. ie are you going to lend them the deposit, so the title changes into their name? Or are you going to let them pay it off in installments? etc
Terryw
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plenty of time, just ask your bank.
Terryw
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It should be possible to do, within limits. And as Simon says, the ATO Commissioner has the power under part IVA to disallow a deduction if it was entered into with the dominant purpose of saving tax.
So, just refine your strategy a bit. Maybe charge a rent similar to market rent – get a rental income appraisal from an agent, tell them you don’t want it too high.
Maybe also don’t rent each others homes directly. Have another family member on the lease, to create some distance.
And, you may still be able to get the CT exemption if you live in the house briefly first, and then rent it. You can do this for up to 6 years and claim the rent and face no CGT if you do not claim another house as your main residence during the same period.
Terryw
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Just did a google search and found him, but it appears his firm has merged with deloittes:
http://www.deloitte.com/dtt/press_release/0,1014,sid%253D5527%2526cid%253D30737,00.html
Terryw
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Funny you say that, my accountant used to sit on mine for at least 3 months every year after I posted it to him. I now do it all myself.
I have remembered there is a good accountant in Canberra called, Tony Commiso (or similar). Will ask a client of mine for his details, as I have probably spelt his name wrong.
Terryw
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Must have been Westpac?
Most banks treat trusts the same as individuals, with the same conditions and residential rates, and you should not have a problem.
Terryw
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Rick is very good at wrapping and lease optioning. His materials are good, with loads of information.
You could be successful if you are prepared to put in the effort, but I think most people who buy these sorts of courses never actually get to implement the material – for various reasons.
Having the contracts may help, but if you just went to a solicitor who knew what they were doing, then they would have their own contracts anyway.
Terryw
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Hi Romina and Luca
You appear to have a little bit of equity, so, depending you your husband’s income, you may be able to buy another property sooner than you think.
eg. increase your existing loan to 90% of value, this should give you $42,000 extra (in a split loan).
You may then be able to use this as deposit and costs on the next one.
eg you next buy another house for $200,000. You get a loan at 95% of the value = $190,000 and $10,000 deposit and $10,000 costs (stamp duty etc) come from the other loan. You will then have a bit of money left over for the renovation.
Just don’t over do things too quickly.
Terryw
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Originally posted by G3ipd:Thanks Terry,
In the following scenario
Property purchased our company name and/or nominees in the event we can’t get finance through can our nominee (a individual person) continue with the sale and our company exit from the purchase? Do you believe that double stamp duty be liable in this instance…considering this transaction is in NSW?I think you have problems in NSW if you are not careful.
Terryw
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I spoke to a loan assesor at a major bank last week and he said that approx 80% of valuations had been coming in under recently.
Terryw
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Ihave never heard of the landlord paying for part of the electricity before. The electricity should be connected in their name, so they are the ones responsible.
Terryw
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Originally posted by Jaffasoft:Agent in Qsld wouldnt let me use ‘and or nominee’.
Couple year ago.
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.Hi Jaff
It is up to you whose name you sign the contract in, shouldn’t let agents push you around.
Terryw
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Why limit yourself to canberra? There are many in Sydney and Melbourne to chose from.
Terryw
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Maybe:
Raby
Campbelltown
Mount Durrit
and surrounding areas??(I hope I haven’t offended anyone living in these areas).
Terryw
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Do you mean Auction?
If so, it was probably cancelled due to the owner coming up with some money at the last minuite.
Terryw
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Dazzling has proposed some good questions.
If it is an investment, you dad will probably be hit with CGT, and your brother with stamp duty (whether it is an investment or not). Can be costly to transfer. Maybe there are other options?
If you brother is buying it, then he would need a loan unless he can afford to pay cash. Whether he could qualify for a loan would depend on his circumstances.
He would not need a deposit as it is a favourable sale/purchase between family members.
Terryw
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I can recomend Matthew at Peter Worral Lawyers down there.
Terryw
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In some states the nominee must also be in existance before the contract is signed. So if you sign and/or nominee, then set up a company or a trust, you may not be able to nominate that entity, if you do, then it may be considered onselling and result in another payment of stamp duty. I think NSW and QLD fall into this category.
Terryw
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Originally posted by red_rogue:The other thing to consider is getting a loan for the trust or company. Lets say you earn $50k a year and your wife earns $100k a year (sucking up to my own wife with that). This means that the bank see’s YOU as Mr. $50k man, your WIFE as Mrs. $100k woman and the two of you (jointly) as Mr & Mrs. $150k.
If you start up a trust or a company then it sees this as totally seperate from you and/or your wife. With no properties, etc, the bank will see it as $0.00 Pty Ltd which can make it difficult to get a loan.
Once you have Properties, you may wish to start up a trust or company and transfer ownership from you and/or your wife’s name/s to the trust/company and after a while the bank will see the trust as earning an income (I presume it would have an income since you mentioned wanting positive cash-flow). The other one to remember is that if you and the Mrs buy a property that earns $50k a year (just an example), then after a while the bank will see you as Mr & Mrs. $200k / year. Why transfer to a trust or company you ask? As said by others above, it can simplify your accounting and allow you to move quicker once you have a number of properties already.
You can convince the bank (sometimes) that the trust/company also has your income and that its all OK but its a lot of hassle thats not worth it.
Summary: your just starting out so KEEP IT SIMPLE and get more complex after you have more experience.
Charles Wilkinson
“Average people boast about their earnings while rich people boast about their worth – Charles Wilkinson”Hi Red
I must say, this isn’t my experience with lenders. Whether you have a company or trust or just individuals, it doesn’t really affect serviceability. It all comes down to having the income in the first place, not the structure.
With getting a loan for a company or a trust, it won’t really matter if the entity has an income or not as the lender will want a personal guarrantee from the director and/or trustee.
Terryw
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