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Sounds very safe to me. What can be more secure than a 1st mortgage?
Terryw
Discover Home Loans
North Sydney
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Just talk to your solicitor and tell him you are going to offer vendor finance by lending the deposit to the purchaser. The solicitor can draw up the neccessary paperwork such as second mortgage.
Terryw
Discover Home Loans
North Sydney
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You can generally borrow up to 95% in most areas of Australia if the loan is under $150,000. One mortgage insurer (PMI) approves these.
Check the postcode at:
http://www.pmigroup.com.au/LocationWizard.aspTerryw
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 Dale was worried that if you were buying and selling lots of properties quickly, as happens with wraps, then the ATO could class you as a trader and the properties as trading stock, and you would therefore lose the 50% CGT discount. For this reason, I think, he recommended you keep the buy and holds in a different structure – as you definitly don’t want to lose the CGT discount on these.
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
Sue,
Those figures would be on the amount ‘evaded’.
The trouble with the ATO is that you are basically guilty until you can prove otherwise. So the commissioner could issue someone an amended assessment based on you low doc declared income and you would have to prove you did not actually earn this much.
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
Interesting.
often the ATO only imposes a 5% penalty for making voluntary disclosures. If they catch you making a false return, then it is around 70% and they can prosecute.
If is possible that the could issue assessments based on the figure declared in the low doc declaration (where it is higher than on the tax return). It would then be up to the tax payer to prove that they did not actually earn this amount.
But, I think the ATO is probably just trying to scare people into paying more tax. The can’t really issue a blanket assessment like this – it is really like a fishing expedition!
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 pre nup is the way to go, but then again these can be challenged easily. Using a trust as well can help, but I have heard the family court can ‘get at’ assets in a trust if not done propertly.
It is not only marriage, but defacto relationships too.
(best to live alone!)
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
G7
These days you need to become an AMC (accredited mortgage broker). see http://www.miaa.com.au for more info. I think you will need to do a course unless you have two years relevant experience (eg working in a bank etc). Once you are an AMC, you can then get accredited with the individual banks.
You can join an existing company, buy a franchise or start your own business. It would be better to work for an existing company for a while to make sure it is the right job for you and to gain some experience. It is a great job for investors as you gain knowledge of how to structure deals to stretch your borrowing capacity further, and you get so see what everyone else is buying.
Feel free to contact me with any specific questions you have.
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
There used to be a short course on property development at the University of Western Sydney.
There is also a new book on its way which may be of interest:
“An Intelligent Guide to Australian Property Development”
by Ron Forlee
0 731401 31 X RRP: $29.95This book offers a sound approach to property development in Australia in both rising and falling markets. It carefully outlines the risks involved and shows would-be and experienced property developers how to plan, build and profit from property development. According to the author, it is not possible to make a quick buck in this trade. What is required is a breadth of knowledge and careful planning. This book gives the reader the former and makes the latter possible. The author has 24 years of experience in the trade and has written on commercial property development and residential property development along with a guide to homebuilding.
http://www.wrightbooks.com.au/forthcom.htm
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
With only 20 people, there won’t be much profit!
Ps. I am not involved in this anyway, just reporting a course that is on.
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 tax ruling on renting from your unit trust is:
TR 2002-18 – “Income tax: home loan unit trust arrangement”Available from:
http://law.ato.gov.au/pdf/tr02-018.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
Probably true. You have to at least have the property on the market looker for renters to be able to claim. As far as I am aware.
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, pretty much all lenders will look at company/trusts on full doc.
On low doc, things are a bit different. ANZ, ING, Suncorp all seem to have problems in lending to companyies/trusts on low doc 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
I agree with GP on the CGT.
Check out http://www.lawcentral.com.au for cheap trust deeds ($275).
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 Delboy
It used to be easy to get wrap finance, but with recent changes in bank policies (probably due, in part at least, to bad publicity) it has become very difficult.
In theory, having positive cashflow will help your serviceability. But you will still have to come up with deposits for your purchases and you cannot using any of the equity built up in the wrapped properties. Getting large deposits off wrappees helps your position a lot.
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
Interesting
Here is an example from 6packs link:
Example
Choosing to claim exemption for the land from the date of construction
Grant bought vacant land on which to build a new home under a contract that was settled on 3 September 1997. He bought his previous home under a contract that was settled on 3 November 1991.Grant finished building his new home on 8 September 2000. He moved into it on 7 October 2000, which was as soon as practicable after completion. He sold his previous home under a contract that was settled on 1 October 2000.
If Grant wants to, he can:
treat the new home as his main residence from 3 September 1997, and
claim the exemption for his previous home from 3 November 1991 to 2 September 1997.
Both homes are also exempt from 1 April 2000 to 1 October 2000, the date Grant disposed of the old home. This is because the maximum six-month exemption outlined in the section Moving from one main residence to another also applies.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 Jbro
By double stamp duty, I think Matt means once on the initial purchase and then again when transfering to the trust.
If you buy under the fresholds, then you would be saving stamp duty on the intial purchase, but will pay it on the transfer to the trust – the benefits cancelling each other out. The upside is you would be getting the FHOG.
I think the long term goal should be to own your own property outright so that you are not paying rent and have a CGT free asset.
What about just buying your home, living in it for 12 months and then buying another house in the trust. you could move into this one and then rent it from the trust, and keep the old one rented out, using the 6 year CGT exemption rule to keep it as your main residence. Later you could sell this one CGT free or just keep it and move back in when the trust property becomes positively geared (meaning you will be paying tax on the rent). Just a thought.
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 am not sure, but would think you would have to pay fringe benefits tax on food.
In certain circumstances you can give meal allowances to the workers. They can buy their own meals, but can fully deduct the allowance if spent.
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
What happened to Rob’s post?
I think it is OK too. I know of people who have purchased properties for cash with the money coming from o/s and they did not need to go thru the FIRB.
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
Ez Rent
can you tell use more on ‘hui’. I remember one of my friends purchased his car using money form a hui.
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
