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There may be exemptions when transferring between spouses.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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it is possible, you just have to keep coming up with the deposits. If you are positively geared overall, you should be able to keep on going.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I’ve ran some figures and assumed a 5% rental yield on the rentals. It seems she wouldn’t be able to get a ‘normal’ loan based on serviceability. There is a lot of equity available there and she has done well.
Depending on her circumstances, it may pay to consider selling the property with the highest equity and paying down her PPOR loan, reducing her non deductible debt. While she has a small taxable income her CGT would be smaller, but she should seek professional advice on this. Once she does this, she could then borrow again to buy another property. Ineffect, this would be converting non deductible debt into deductible debt.
Terryw
Discover Home Loans
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
Mel
What do you mean? Did I miss something again??
Terryw
Discover Home Loans
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 didn’t end up going to the seminar, as I suspected they would cancl a few speakers etc and it would be a waste of time. I bet it was John McGrath that was cancelled?
Terryw
Discover Home Loans
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
Get one of the mortgage broker magazines such as MPA- Mortgage Professionals Australia and go thru all the ads in there. We use FAST, who only take a flat fee per deal.
One thing you have to watch out for is the safetly of your trails.
Terryw
Discover Home Loans
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
Originally posted by lifeX:Thanks Mortgage Brokers, you guys rule.
Terry,
What do the banks you mention need to approve a loan when there is money left in the deal. Will they still do 80%LVR of the TOTAL sale price?[sunny]
lifexperience
Hi LifeX.
Sorry for the late reply – been away.
I have put a scenario to these lenders, but never actually done one of these deals. These banks have indicated to me that this scenario would be OK as long as the client can service the loan based on additional repayments for the second mortgage. max 80% LVR on contract of sale price.
ps what is happening – it seems there are many posts in this thread missing.
Terryw
Discover Home Loans
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
short term loans secured by caveats on this and/or other property is available for about 6% to 10% per month. They can usually settle in about 5 days. These are far from ideal, but you may not have an option.
Terryw
Discover Home Loans
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
Do you mean the one that involves taxing trusts as companies? If so, this will have virtually no effect on the effectiveness of trusts!
Terryw
Discover Home Loans
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
30 days is not much time. Beware, banks are slow!!!! Some lenders can settle in as little as 5 days, but others would be pushing to settle on time for a 42 day settlement.
Terryw
Discover Home Loans
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 have put a few clients with Hybrids thru BankWest and they had no problems.
Terryw
Discover Home Loans
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
Another option would have been to offer the agent a % of the money saved. eg 50% of every dollar saved under a purchase price of $250,000. If the agent negotiated it down to $240,000 they would get $5000.
Terryw
Discover Home Loans
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, I think it owuld be hard to wrap as the purchaser could not build unless they have the funds themselves (ie they could not borrow).
Maybe you could vendor finance the purchasers deposit?
Terryw
Discover Home Loans
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 personally would not touch retirement homes. You may be able to get higher rental yields, but the growth would possibly be not as high as standard residential, they are also harder to resell and, as already stated, hard to finance.
Terryw
Discover Home Loans
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
Good stuff LifeX
Terryw
Discover Home Loans
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
Hi Cajun
I would be wary of setting up a Hybrid trust online. It would be best to go to an accountant at first.
If you are looking for a property, you could get a loan approval in your name only and latter provide the copy of the deed. Make sure yu tell them up front that is what you are doing as some banks won’t lend for trusts.
But whatout, as some states require the trust to be actually setup before you sign the contracts – otherwise you could have to pay double stamp duty. Talk to your solicitor about this.
Terryw
Discover Home Loans
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
If you can keep coming up with deposits you can keep getting loans.
Terryw
Discover Home Loans
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
Maybe you mean change you existing discretionary trust deed to a hybrid one – before you actually buy anything?
If so, some of my clients have done this and it nearly costs them as much as the original deed. It might be better to just keep the old one and get a new additional hybrid trust made up.
Terryw
Discover Home Loans
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, it will be hard to do with LMI approval, especially if there are more than 4 in the block (=more risk). tell us a bit more…
Terryw
Discover Home Loans
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
Forgot. Another option would be to use an ‘option’ as this would limit your risk to the price of the option fee. When done, you could just assign your option for a fee. If done correct, there would be no stamp duty involved.
Terryw
Discover Home Loans
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
