It can be done in Vic and NSW on installment contracts. In QLD and Tas, it looks like they only get accees to the FHOG after living in the property for 12months.

Terryw
Discover Home Loans
North Sydney
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Thanks for your post Stu. I had no idea that could be done and will have to look into it.

Rob when buying things for the trust, you buy in the trustee’s name which is your own (if trustee). You then just get the loan in your name as well. So title is in your name and loan is in your name. Confusing the first time. I remember the first time I bought as property as trustee. I told my conveyancer I wanted it in the name of the trust, and couldn’t udnerstand it must be in the trustee’s name.

Terryw
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North Sydney
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Yes you can pay interest a year in advance, and can claim it in the year you pay it. But remember you are just bring forward you deductions, and you may not have much to claim the following year – so watch out if you expect your salary to increase.

To claim in advance, you must know how much the interest will be, therefore you must fix the interest rate. You couldn’t have variable as repayments and interest could change in the middle of the year.

Terryw
Discover Home Loans
North Sydney
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Misty

You may have mixed things up a bit?

A lot of people rent while investing. ie they rent out their own home and negative gear it, saving tax. The rent they pay would not be a deduction though.

Is that what you meant?

Or if you a renting a business premisis, the rent would be a deduction. Some people run a business from a portion of their home and can therefore claim a portion of the rent.

Terryw
Discover Home Loans
North Sydney
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I would think it is exactly that same as selling yours and buying his – as that is what you are doing in essence.

Terryw
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North Sydney
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I’ve heard that livestock (cows etc) can be depreciated too!

Terryw
Discover Home Loans
North Sydney
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Julian

If the long is for investment or business purposes it is not regulated by the UCCC. ANd as far as I am aware, there is not itnerest rate ceiling imposed. You know the money is for investment by getting the customer to sign a declaration as to the purpose of the funds.

Terryw
Discover Home Loans
North Sydney
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Rob

I have done a few loans thru bankwest for Hybrid trusts. I have also used one other lender – can’t remember who at the moment. Tonto will also do them, and many other I imagine.

Most lenders will also lend to the trustee. I have a few of my loans in my name without mentioning my trust.

Terryw
Discover Home Loans
North Sydney
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Liz

yes brokers can get access through Baycorp (they also offer access of many other things, title searchs, ASIC director searches etc). But everytime you check, there will be another entry which doesn’t really look too good on the poor clients record. So it is better to get them to order their own.

Terryw
Discover Home Loans
North Sydney
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Bigstrides

Are talking about a sandwich type wrap. ie you are the wrappe and then rent the property out?

I have thought about this and think it would be a good way to get unlimited low deposit finance. The only problem would be servicing the loans. It would be pretty hard for a proeprty to be postively geared on the higher interest rates, but is possible.

Another way around it is rewrapping it, or even using lease options and buying an option and then selling one at a higher rate with a higher rent.

Trusts are generally better than companies as they get the capital gains discounts and are more flexible. But you d not pay CGT on wraps, so it may not matter so much. Talk to an accountant that understand wraps.

Terryw
Discover Home Loans
North Sydney
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