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MarkK
I don’t think you are required to actually distribute the trust money, you just make a book entry. The beneficaries will have to declare what they ‘receive’ as income, and you will need an agreement with them that they give the money back to you.
There is still benefits if the ‘owners’ of a property are low income earners. Under certain circumstances, if someone goes bankrupt or sued, the trust assets are unable to be touched as they do not belong to the owners. So extra asset protection is available.
With beneficiaries, you try to include as many people as possible without naming them. eg. any former, current or future sposue and their chidlren, parents, grandparents, cousins, uncles, aunties, step childrent, adopted children etc. You are probably a beneficiary of my trust!
Terryw
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There are still plenty of ‘credit impaired’ people out there that will not qualify for low doc loans. These people have little choice but to go with lenders like GE Money who charge up to 10.65% for a 90% low doc loan. This makes paying 9% on a wrap look cheap! And wraps usually require a lot less dpeosit.
Terryw
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Try this one:
http://www.nrm.qld.gov.au/property/Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Hi Tom
You cannot cross securistise a wrapped property, so your equity level would not really matter to lenders unless you were refinancing htis property. If you were refinancing, then they would give you a loan based on current value, $100,000 in your example.
Terryw
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You can prove income from existing wraps by showing bank statements with regular deposits. If the lendder queries this, it could be backed up with your installment contract.
Terryw
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Steven
Actually, GE only allow 80% LVR in Cat 3 for low docs if it is owner occupied, not investment.
Must also be self employed for more than one year at time of application – for low docs.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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The latest GE postcode list is available online at http://www.gemoney.com.au/Broker/docs/pl_PostCodes%20IX.xls
Freedomfighter, you would be looking at a rate of around 8.15% for a 80% LVR low doc with GE Money.
I’ll let you know how that application goes Steven.
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
Those calculators can be deceiving! But Good luck then. Another thing, watch out if you only have a temp job.
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
out of those choices, 1 of course. Why bother making $50 pw when you can get $50,000 in a week?
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
There are some disadvantages to owning a property via a company. the major one is you will lose the 50% CGT discount. Look at trusts instead.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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If each person has equity, they could draw down individually on that equity and you could form some sort of JV to do the project.
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
Yes you will be able to claim any interest on the existing loan as well as rates, repairs, depreciation etc.
A good accountant with experience with expats is http://www.gatherumgoss.com located in Melb.
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
I would go for the tenant first, and get them to find a property with your help.
If you are after cashflow, then wraps maybe the way to go. But there are properties out there that provide cashflow and Growth.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Another point, it is going to be farily difficult to qualify for such a large personal loan.
Terryw
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
as long as you have a tenant, it won’t really matter. in the long run things should improve, even if there is a dip. But this will effect equity, and will slow down your next purchases.
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
I am not a fan of carspaces for the follwoing reasons:
-low capital growth
-low rental yields
-cannot add value to them, and
-hard to financeTerryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Steven
I am doing a cat 3 low doc at the moment with GE at 80%. Still not fully approved yet, but it seems the location is not a problem.
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
Banks won’t take into account income from renting rooms out. Your problem is mainly from being casual, so why don’t you ask your employer to make you full time. After the loan is approved, you could go back to casual if need be.
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
maybe La Trobe will do it. GE Money (not the mortgage insurer) would do 80% in this area.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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If your looking at Commercial, then even an Australia resident working here would have trouble getting 80%. Parking lots etc will be even lower – maybe 50% LVR of less.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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