I agree with Stu. It is best to get a pre approval in writing before even looking for a property.

Terryw
Discover Home Loans
North Sydney
[email protected]

Pisces

You also need to take into account CGT on your small profit.

I think what you have described is actually a re-sale. A flip would be substituting another buyer before going unconditional -saving you $12,500 (in some states anyway). Eitherway it will be hard to make a profit in a falling market unless you can resell or flip quickly. Maybe you need the buyers ready and waiting before you find the property.

Terryw
Discover Home Loans
North Sydney
[email protected]

Lucifer

Why not use a trust with wraps or LOs (I do for both). This adds another layer of protection (your shares in the comany are exposed to creditors) and also allows the income (and capital gains if any) to be distributed at your discretion.

Terryw
Discover Home Loans
North Sydney
[email protected]

Have a look at this site:
http://www.diysuperfund.com.au/

Terryw
Discover Home Loans
North Sydney
[email protected]

Lucifer,

There are many Financial Planners that charge an upfront fee for there services (and rebate any commissions received). I share any office with one, but he has not heard of wraps.

I also know another financial planner who is a property ‘guru’ (ie retired young using property), but he did not know what a wrap was and didn’t think much of the strategy when I explained it to him.

Terryw
Discover Home Loans
North Sydney
[email protected]

Bid, you can’t get the FHOG if purchased via a trust.

for individuals, I think there is no requirement to live in the property for a minimum set period, the legislation states you must live in it at some stage during the first 12 months.

Terryw
Discover Home Loans
North Sydney
[email protected]

Lozza

The tenants on my lease options are responsible for all maintenance, repairs, rates and building insurance.

Terryw
Discover Home Loans
North Sydney
[email protected]

I have written goals and review then every month on a fixed day. I also to asset and liability statements on the same day every month.

For a long time I thought I had goals, but didn’t actually write them down – or just did something on a excel spreadsheet. But I have found actually writitng them on paper helps more.

Terryw
Discover Home Loans
North Sydney
[email protected]

Terence

Centrelink has ‘cracked down’ on trusts in recent years. If you control a trust they deem you to be ‘owning’ the assets and income of the trust. They define controlling as being a trustee or appointor, (and even maybe a beneficiary in some instances – altho you would not know if you are a beneficiary of some trusts).

Michael. If you had your dad as trustee it would affect his pension and if you have your mum it would affect her pension later on and it would affect her borrowing capacity now as she would be responsible for the loan of the trust.

It is still worthwhile looking at using a trust. Even if you are on your own, you will not be sole beneficiary. Deeds are worded so that any relative now or in the future (whether living or yet to be born) will automatically be a beneficiary.

You may have all this positive cashflow comming in and may have to distribute it to yourself at the moment, but if you get married in, say, 5 years time, your new spouse and all her family would then become beneficiaries – reducing your tax bill!!

Terryw
Discover Home Loans
North Sydney
[email protected]

It really depends on your strategy, etc. Both positive and negative gearing has worked in the past.

I wouldn’t be too concerned about minimisng tax. If you set up using a trust structure, it leave lots of opportunites to do this – now and later. Look more at the deal itself.

Terryw
Discover Home Loans
North Sydney
[email protected]