Forum Replies Created
To resell a property you need to own it first. Theoretically you could get a long settlment and then do your renos and then find a buyer who will settle at the same time as yourself. If you could do this, you would not need a loan.
If not, you will need to settle on the property to resell = getting a loan unless you have cash.
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. But they will ahve to declare the money in there tax return (some people actually forget this bit). And work has to actually be done for the money and it must be reasonable.
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
You can have a lease agreement drawn up with the tenant signed up to rent the place if you purchase it. With commercial properties, valuations are heavily influenced by the lease, but valuers/lenders are also aware of people entering into ‘leases’ with friends etc to make things look good, so doing this may not have much effect.
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
Misty
I think you are a bit confused. CGT is applied to the gain in the value of property. If less than 12 motnhs the gain is just added to your income (less some deductions), if over 12 months, you can get a discount and only 50% of the gain is added to your taxable income. So how much tax you will pay will also depend on your income for the year.
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
For what it is worth, this is my understanding too. Additional stamp duty would only be paid if the mortgage is increased.
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 agree!
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 would be possible if you could find these lenders. Australia appear to be much tougher than USA in this regard. Generally private lenders only go up to 85% LVR and the rates are much higher, so you are better off going to a conventional lender.
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 Lucifer. I will be going too – see you there!
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
Adelaide Bank, Bank West….
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
That’s ok.
I might add, that you may require larger deposits as time goes on. ie it gradually gets harder to get finance, but it is always possible.
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
Jo
It all depends. If he had IO loans, he could afford to own more properties (as the repayments are cheaper).
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
It all comes down to deposits. If you keep coming up with the deposits, you can keep getting loans. That’s the hard part!
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
Like a margin call.
I have heard it happening to rural property loans, but never seen or heard of it happen to residential. I don’t know if it would actually be possible for the bank to do this or not.
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
Thank you Kaloni.
The draft ruling is TR 2004/D3 and is available from:
http://law.ato.gov.au/pdf/tr04-d03.pdfTerryw
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
IO would be better if you have other non deductible debt.
If none, then it won;t really matter too much. Having IO will increase you cashflow – allowing you to invest in more areas.
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
http://www.businesslawyer.com.au
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
Mike
You should be able to do this on your own if you wanted to. The company is probably charging you a few thousand to set it all up, and they may even be getting a hefty commission on the purchase of your new property.
Can you let us know the fees and the interest rates?
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
When you say linked, do you mean the company is the trustee, or just a beneficiary?
1
It is usually the Trustee as Trustee for the trust.
eg the company X Pty Ltd as trustee for (ATF) the Smith Family Trust.2
Rent would be payable to the trustee or the trust.3
If you live in it, you would pay rent to the owner – the trustee of the trust.4
The trust can claim deductions for interest etc, but you cannot offset this against your perosnal income (unless a hybrid trust). So unless the trust has other income, it will probably run at a loss. This loss is not transferable, and can only be used to offset future income.BTW, I am not an accountant and don’t know what I am talking about!
Have you purchased the book, “Trust magic” yet?
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 think it will be very hard as there is basically no security. I have heard that Westpac will do loans for big brand franchises such as McDonalds etc. Vendor finance is another 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
The cashbond strategy invloves buying an annuity to give yourself extra income to increase your borrowing capacity.
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
