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Yes it would be possible to buy a house using a deposit from your family. Generally you would need around 10% deposit if you do not have genuine savings.
There are still cheap houses in Sydney. One of my clients is purchasing a 3 bedroom place for $210,000 – a house. The rent probably won’t make it positively geared, but after tax deductions, and depreciation is should come close.
I would think that it would be better to buy something like this in Sydney then some small little house in a mining town, just because it would be positive geared.
Terryw
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Mortgage Broker
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[email protected]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
Huge difference.
A trust is usually better for the following reasons:
– Asset protection
– Tax reduction
– Estate planningA personal name may be better for
– cheaper
– negative gearing benefits (although this can be done with a hybrid trust)Terryw
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Mortgage Broker
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[email protected]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 are buying from you parents, can’t they just make the contract higher?
Terryw
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Mortgage Broker
North Sydney
[email protected]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
So the reno is finished, but the valuer refuses to value on the current value? Sounds like it shouldn’t be a problem.
Maybe you just have to approach another bank. ANZ lets the broker order the valuation and to receive a copy. Not many others do.
However, even if the valuation comes in higher, they are only likely to lend based on hte contract price. Unless the long settlement mentioned has been over 12 months.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
That is around market price for wraps. I did some with a 20% markup on price and a 3% markup on interest rate.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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 big potential market for wraps is investors who have maxed out. As you know, most people use up their deposit money quickly, and banks stringent serviceability requirements mean the average investor could only get a few properties before maxing out. So you could wrap to these investor’s who would then rent the premises out – probably negative gearing it.
It would be easier to kick them out if things went wrong (not cover by the UCCC) but having a tenant in there may complicate things.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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 think you would be walking a fine line there, especially if you are going to be receiving a payment for helping sell a property that you do not own.
If everything goes smoothly you should be right.
Terryw
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Mortgage Broker
North Sydney
[email protected]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 purchased something similar (or maybe the same?) years ago. I ran a few of my statements through (which is time consuming) and did not find anything wrong.
The trouble with the program I purchased is, they only work with a special key they issue. So if you change conputers or have to reformat etc you need to fax them each time for a new key.
Terryw
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Mortgage Broker
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[email protected]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 think St George are good with smaller units – over 35sqm.
Wide Bay Capricorn also used to do smaller units.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Sounds like a good plan. Try to get the investment before you go, while you are still working. You may not get much in the way of tax deductions, though, if you are not here earning an income.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
This is a problem that many people face.
There are ways to ease the pain, to some extent you may be able to capitalise interest and costs on the investment loan, allowing the new PPOR loan to be paid quicker.
Another option is to use a cashbond (or annuity) and put the monthly proceeds into a 100% offset account linked to your new home loan. THis may work if the purpose of the annuity is to increase borrowing capacity. see http://www.navra.com.au for more info.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Yes. As far as groups go, they are one of the best, and have been around for a while.
Do a search on the forum here and you will find a few posts.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
The less you borrow the easier it will be to qualify and you will also save a bit on stamp duty on the mortgage (except in Vic where this has been abolished?). You will also save interest.
If need be you could probably increase your loan to 80% later, but this may have tax consequences.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Why isn’t it profit? If you buy something and then sell it for more, that is a profit.
If there is a loophole, I’d love to find out too.
Terryw
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[email protected]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 am not sure you could use a business to buy property. A business is not a separate legal entity. It would have to be in your name or your company name.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Paying a default will help your chances of a loan, but they may still reject you, depending on how good/bad your excuse is.
But there is not point in paying a debt that does not belong to you.
I would suggest you write to the company listing it and ask for copies of any proof (eg contracts etc) that you owe the debt.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
$2000 is rather large. And may psoe a problem if you need mortgage insurance. You could be able to get it through with FirstMac at around 95% LVR.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Just think of it like a credit card you don’t pay back until a year or so later. You make payments, the balance goes up. Then interest is added monthly. the next month you will be paying interest on interest and so on until you start to pay it off.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
Qualifying for low doc loans is not so easy. There are plenty that don’t for many reasons (Don’t have 20% deposit, not self employed for 2 years etc). Often their only choice is very expensive non conforming loans, or cheaper wraps.
Terryw
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Mortgage Broker
North Sydney
[email protected]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
The company I was referring to is http://www.hunterhousehunters.com.au
Terryw
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Mortgage Broker
North Sydney
[email protected]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
