Forum Replies Created
Stuart
Thats the new ‘product’ (called 500 plus), $500,000+ with LMI paid by RAMS with an interest rate of 7.23%. The standard No Doc is the No Doc 80 which can be under. Got one of these approved the other day for about $360,000 at 80% LVR.
At the moment RAMS are bring out new products every week and it is hard to keep up
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Kiwi, I beleive the Family Law Court can do this. I think I have a paper on family law and trusts which I can send you if you want. From memory there was one case where the man had his dad as trustee, and the FLC attacked the structure.
But, just because they can, doesn’t mean they will.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Ficus
Be very careful with something like this. The rental guarrantees are meaning less if the company ends – which many do.
The potential capital growth may be very limited as these things are hard to sell, and harder to finance than the average unit.
Also watch out for management costs blowing out and for restrictions on what you can and cannot do.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And, if you are going to use a No Doc (can go up to 80% LVR with RAMS), consider having one person resign as director. This could help you limit the personal guarrantee to one person, reducing risk and saving the other person for more loans later.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I just refinanced someone out of MB into the ANZ as they wanted a LOC, and MB were not willing to change things, or it was too hard for them.
Depending on the amounts I think you will find ANZ or St George to be good for LOCs
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by Dr.X:someone of a similar sex
[blush2]
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You could do that, but the extra interest incurred would not be deductible. Why? because you are not borrowing, you are taking from a savings account.
In this case, it would be best to approach your lender and ask for a separate loan securred against your home, and use this money as deposit for the new property.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree too. Don’t know which is worse, this one or the one starting with C.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A possible solution is not to get married, and not to sleep with your ‘spouse’!
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by mcdeyess:
snip
I am particularly interested in the second point “your net profit …. is calculated as the difference between your receipts …. from the sale of the property and the costs incurred in buying, holding, renovating and selling the property “This says to me;
Sale of the property $275K
deduct agents fee’s, interest on repayments and renovation costs = about $12K ??? huge guess
Net profit = $3000 (wow don’t spend it all at once)
I would then pay tax on the $3K as per my income tax rateSeems logical, I will search for further clarification on “costs incurred in buying, holding, renovating and selling the property “. Do loan repayments count? I am guessing not [glum]
Thanks again,
Cheers,
[email protected]This sounds correct to me. Don’t forget you can claim other things too such as travel, accounting, loan costs etc.
ps hope this is theoretical as there doesn’t seem to be any profit!Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ian, I think you are right about the 50% discount.
I think that if you are doing this as a business you could possibly class the gain as income (rather than a CG).
It may also be possible to keep the gain as a capital gain.
Whichever is prefereable may depend on whether you have losses from previous years.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It would probably depend on the amount of rent compared to the interest. If you will be making a loss, then you may as well claim it, if making a gain, then you will be paying extra tax.
Don’t forget to take into account depreciation, interest, loan establishment costs etc.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You might as well just find the lender first and then do the valuation through the bank, otherwise they bank will not accept your valuation and you will be paying for 2.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sometimes you can argue the case, and get them to do a full valuation.
If you are increasing your loan, then the repayments will naturally increase, but these extra payments should be attributed to the new purchase.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
From an interest saving point of view, they are both the same. But from a tax perspective totally different.
If you use a redraw, you can get inot trouble. Each time you place money in the account, you are paying down the loan. Each time you withdraw money, you are borrowing new money. So you can probably see that deductability will depend on what you use the money for.
If you use a 100% offset account, you are not paying any extra off the loan, but placing the money in a separate account. So when you take money out, you are not borrowing more money. The interest on your loan would increase, and the deductability wouldn’t be effected.
Of course, if you just have a home loan and are not investing, deductability would not really matter.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Carlin
You just apply for a loan increase. Tell them it is for further investments. very simple. Some banks may only require a shorter application form to be filled out, depending on the amount. Many banks allow valuations to be done every 3 months.
ANZ is a good bank for increases, under $100,000 it is only a 2 page app form, and they allow a valuation for free 3 times per year if you are on the breakfree package.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you own a property outright, there is hope!
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Like some sort of wrap.
Yes this will effect borrowing capacity as you still have a loan. But they are paying this, so you can declare this as income.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Looti
I can’t understand why anyone would do that. Do you mean they are going to pay you in full now, and let the title transfer later? This is very risky for them!!
If so, you could just pay out your loan now, or just pay cash for the next property.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Kiwi
Who approved the release of deposit?
The deposit was used to pay agent’s costs, so what happens if the sale falls through? Agent will probably have a clause in there to enable them to keep the deposit. You would have to chase the vendor for it.
Don’t think you can blame the solicitor for anything.
How much is the shortfall?
The lender won’t be happy either. They may have to face a loss if they foreclose on the property and then sell it for less, so you may be able to negoitate with them. You can find out who the lender is by doing the mortgage search.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
