Forum Replies Created
You would simply apply for loans jointly. However, you would both be responsible for the whole debt, not just your share. So if he/she just stops paying, you would be required to do so.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Cashbonds are just Steve Navra’s term for an annuity. You pay money to a bank and they give you back this money over a period and pay interest. this money can then sometimes be called ‘income’ on you loan application.
eg. you have $100,000. You buy an annuity for this amount over 5 years. The bank will pay you $20,000 per year plus interest, usually it is paid monthly. This extra $22,000 or so received annually is actually mostly your money being returned with a little bit of interest.
However with some banks the whole lot can be claimed as income for loan purposes. Thus increasing borrowing power.
But there are costs for this to happen. Annuities will usually pay a low interest rate – maybe 5%. So if you are getting the money form your LOC and paying 7%, there will be a loss. This may or may not be claimable.
Then there is the setup fee – often up to 3% of the annuity amount.
These days low docs may be a simpler option, as Derek suggested.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Yep, there is no easy way to buy many properties quickly unless values are rising quickly and/or you have a large income to save the deposits.
You will find over time, your rents will slowly increase and your wages will rise, so you can save more. Also the values will hopefully go up to enable you use equity as well.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
When you say ‘small’ how small do you mean? Size matters.
I would be extremely weary of any so called guarranteed leases etc. These are essentially meaningless if the company closes down or the person goes bankrupt. Could you re-lease it at similar rents if this happened?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Are you a licenced real estate agent? If not, you may be acting illegally in your state. check first.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Tom
Sydney is a big area, what suburbs are you looking at?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
We have put many clients into ‘private’ funds. These are often solicitors funds – 7.5% interest rate or private companies etc. Rates less than 12%. generally the LVRs will be 75% or less.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Retire
Technically they will need to know – as the mortgage documents will prohibit wrapping wthout their permission.
But they will be unlikely to find out if you decide not to tell them.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Jaffasoft
What state are you negoitiating in? In Vic and NSW you can just sign the contract as jaffasoft and/or nominee. But you may be up for stamp duty twice if you have no pre existant agreement with your nominee. and it may not work in NSW if the nominee is unrelated. Please talk to a solicitor about this before you sign.
What is the 1% stamp duty they are talking about?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
What about non traditional lenders such as GE, Liberty, Pepper Home Lonas, Bluestone and HLP and others?
These lenders specialise in helping people with credit problems. BUT you would need at least 10% deposit and the rates can be high. – up to 10.65%
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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 bother wrapping at all? If you wrap you may get short term cashflow, but in the end the wrappees will end up with the property and the capital gains.
In a negative growth market, wraps would work well – for the wrapper that is. This is becasue you would receive a deposit and cashflow, and if the wrappees ened up walking away, you would stil be left with the property. It may have gone down in value, but you would have the deposit and cashflow to offset the ‘loss’ – which wouldn’t really be a loss anyway until you sold.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
can’t see why it wouldn’t work.
If you received vendor finance for a poriton, and borrowed the rest, you could have the title in your name. You could then onsell via an installment contract.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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 can’t see the point in investing in property without capital gains. But whether to sell or not would depend on a lot of things. would you have to pay any taxes, how much money is tied up, could you get a better return elsewhere etc.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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 hkr:Hey following on from djones query i have the following problem with my IP loan account:
I made 3 additional repays(big lump sum payments) temporarily into my IP Loan account. Basically my intention was to reduce my tax deductible loan temporarily as i didnt have any other loans at that moment. But within a month i bought a PPOR and have thus withdrawn these additional repayments in total and put this money in the PPOR loan which is non tax deductible.
I understand i should have made these payments in the offset account of teh IP loan but i was unaware of this at the moment….
Is there any way out of this mess as those additional repays were only for a very short time(less then a month and only 3 transction were made) and then withdrawn in 1 transaction.
Just want to know if i have any option or whether i have lost on teh negative gearing aspect of my loan???
Thanks in advance…
HKR
I agree with Derek. There is no way to rectifiy this now – unfortunately. You have paid down your investment loan, if you redraw from this you will be borrowing money again. If this borrowed money is used to pruchase a new PPOR, then the interest would not be deductible.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Ty
That sounds correct to me. If you borrow to improve an investment property, then the interest should be dedcutible. The building cost of the room would be claimed as depreciation at 2.5% for 40 years, and any fittings in the room such as carpet etc could also be claimed via depreciation – usually over a much short time such as 5 years.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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 a bit harsh!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
You may get some ideas by looking at http://www.lawcentral.com.au
They create various legal documents including joint venture agreements and agreements for buying property together. You have to register, but it is all free to create the documents and view all the tips.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Not many will knowingly finance wraps.
Liberty have said they will, but I have not actually tested them out. Rates these days with liberty start at 6.69%, so it may be an option.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Are these card?
A credit card is where you use the lenders funds to pay for your purchases/withdrawals. You then pay later – usually monthly.
A debit card looks like a credit card, but you are actually using your own funds. ie you must have funds in the account.
Various loans have these sorts of cards attached.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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 can keep coming up with the deposits, you can always find finance.
Others have also used:
– deposits received from wrapping
– option fees from selling options on the proeprty
– personal loans (not good, as the rates are high and amoutns limited)
– credit cards (Oh no!)Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
