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See this one:
The family court case of Milankov & Milankov is at http://www.austlii.edu.au/cgi-bin/disp.pl/au/cases/cth/family%5fct/2002/195.html?query=%5e+milankov+
.Terryw
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Also, hopefully you may have equity in existing properties to draw on for deposits.
Terryw
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Plenty of people use companies to purchase property. But it is not neccessarily a good idea as you will lose the 50% CGT discount. Using a trust would be better, probably.
Terryw
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The trouble with partnerships, is that each partner would be responisuble for the whole debt-not just their share. I owuld form some sort of trust structure, probably unit trust with a hybrid as unit holder. Keep you son out of being a director/trustee. Since you are the money man, you will need to be on the loan, but your son doesn’t have an income so he should be ‘saved’ for future use. ie when you run out of borrowing power and he has some income he can be the trustee of the next trust. You could still have a partnership agreement behind the trust.
also, I am interested to learn why are your selling your negative geared property?? I did the same thing a few years ago, and now wish I hadn’t.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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The family law court can easliy unravel trusts!!
Your parent should consult a lawyer before buying anyhting. Maybe the business could be setup in your trust, where you mum/dad have no role other than beneficiary. But then they have to worry about your getting a divorce.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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There may be many other costs not included in the package incuding landscaping, fencing, driveways etc.
Terryw
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Savings! or Investors
You will have to save like mad. All the positive income, the wrappers deposits, your wages etc.
And/or
Borrow money from investors. Many people pay 12%+ to borrow money from family/friends and then use this money as deposits. Even though you are paying a high amount for this, the blended rate will be much lower and you will still be making a profit.
Terryw
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Hi Flop
If you are selling you will be up for some legal costs, real estate agent’s fees (about 2.5%), loan exit fees etc. And then when you buy you will be up for stamp duty, loan applicaiton fees and legals etc.
Also do some sums on what it would cost/benefit if you rent out your home without selling. You could rent elsewhere, and acess your existing equity in your home to buy more.
If you are selling, then you can’t really use the equity in your house.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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7.14% was probably a good rate at the time, but compared to todays rates it is a bit high. To change it you would be up for exit fees/break costs and these could be high. I suggest you ring your bank and ask them for a figure, and take it from there.
For what its worth, I have one loan fixed at 7.10% for a few more years too.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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If you have enough equity, all you have to do is to apply for release of security for your properties (just hope your not with the NAB!). Maybe one at a time would be the way to go.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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It will be very hard to finance if someone else owns the land. Also very risky, what if there is a dispute, the owner has title, the builder nothing.
I have seen a developer offer a fixed price and a % of profits after selling, to the vendor as an incentive.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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You probably have to get the loans in your name, hence wearing all the risk. These returns are not very high for leverage returns.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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You have not debt on your home, and the others would not be costing too much after taking into account tax breaks and rent, so why sell? You should be buying more!
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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It depends on the area. I would not buy based on rental yield alone.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Buying o/s is complicated and there will be extra costs with accounting remitting money, exchange rate fluctuations etc. Many people I have spoken to who have bought in NZ have said it wasn’t worth the hassle to buy just 1 or 2. I’m not saying don’t do it, just something to keep in mind.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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And, there are various postcode restricitons, especially for low doc loans. This means, that sometimes it is impossible to get low doc loans in some area.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And this one for SA:
http://www.landservices.sa.gov.au/4Lands_Titles/Searching_Lands_Titles_Records/Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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2 seconds on google produced this site:
http://www.land.vic.gov.auTerryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Make sure you get an ABN asap. It is very hard to get a good, cheap low doc without having held an ABN for 2 years. If you haven’t got one, that means you are turning over less than $50,000 pa, which could be the case, but will mean it will be hard to qualify for high loan amounts. You still must declare an income for low doc loans.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Max, that bank is well known for this sort of thing. It happened to another client of ours with a farm. They just said you have ‘x days to repay your loan in full’, with no reason given. I htink he had a month or so!
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