Hi

yes this looks like a wrap. But the figures look a bit low. usually there is a 20% markup on the value ,this would make the vendor finance purchase price $294,000.

Also there is usually a 2-3% spread on the interest rate, so 7.99% is a bit low.

Sometimes you can take a higher interest rate for a lower price or the other way around.

Since you already own the place, you don’t have to take stamp duty into account like an investor would when purchasing a property just to wrap.

If you are wanting to sell to get positive cashflow, this may be ideal – if you can negoitate the figures up a bit.

Terryw
Discover Home Loans
North Sydney
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I agree with mark, (except the bit about size not mattering). you should be able to claim the room rent, and portion of telephone, electricity, gas etc. Maybe even tea and coffee and milk, microwave, cutlery, toilet paper etc.

Terryw
Discover Home Loans
North Sydney
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As long as you have deposits, you will be able to buy properties. It will gradually get harder, with interest rates rising the harder it gets, but it can be done.

Terryw
Discover Home Loans
North Sydney
[email protected]

You’d better hope the value goes up! Renovations, market growth??

Terryw
Discover Home Loans
North Sydney
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Its funny that most accountants cannot understand, my one had the same problem.

I would suggest you use Julia from bantacs, http://www.bantacs.com.au. Julia posts on this forum and seems to know a lot about tax and wraps.

Terryw
Discover Home Loans
North Sydney
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ShOw_Me_ThE_MoNeY, I owuldn’t decide by just taking into account tax benefits! These are short term benefits, icing on the cake (as Steve calls it).

Derek. Netown is a good area with long term growth potential. next to a uni and a major hospital!! Sounds like a good deal.

Terryw
Discover Home Loans
North Sydney
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Hi

These days with banks, a lot a things are automated. The lender or the broker imputs the data and a credit check is ususally done automatically. Scores are then generated with points received for number of enquiries, stability of employment, stability of address etc. Often things out of the norm, results in a automatic rejection. That’s when the human assessor takes over and looks at things. So sometimes you can get rejected automatically, and then pass with your explanition is received. Its happened to me a few times too.

Terryw
Discover Home Loans
North Sydney
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From memory, the FHOG is only payable in QLD after the wrappees have been in the house for 12 months. Richard 007 will correct me if I am wrong.

Terryw
Discover Home Loans
North Sydney
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It will depend your cost base would be the value at the time it was transfered into the trust. You would have already paid the capital gains tax when you sold it to the trust.

CGT would depend on this transfer amount. lets assume is was $400,000 and there were $30,000 in legals, stamp duty etc. If you sell for $700,000, there would be a $300,000 gain less $30,000 in costs = $270,000. This would then be distributed to beneficaries who would then pay tax on this. If an individual, then may get the 50% discount, = $135,000. If on the top tax bracket, then maybe $67,500 in tax. But if you have many beneficaries, then the tax may be a lot lower.
I also think you would have to add back any depreciation claimed to the gain.

ps I am not an accountant.

Terryw
Discover Home Loans
North Sydney
[email protected]

You should be able to claim a % based on the floor area. But, I agree wth Scott again. You will probaby lose the CGT exemption on your home. So it may not be worth claiming.

Terryw
Discover Home Loans
North Sydney
[email protected]