I personally like to have my loans with different banks (using 4 different banks at the moment), but if you have all loans with the one lender, you have more ammunition when negotiating deals with them. But then if their lending policy suddenly changes, you may have to go elsewhere for the next one – which is easy if you have a LOC setup for deposits.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

It is very easy to get the loan when using a trust. In fact it is vritually the same as when applying for a loan in individual name. The only difference is the bank will want personal guarrantees from the trustee and/or unit holders and will want to see a copy of the trust deed.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Ahmed (and Mel)

I suspected this was the case. Actually there are not many lenders that will go to 90% LVR on low doc loans. GE is one of the very few.

Terryw
Discover Home Loans
North Sydney
[email protected]

AS it will be a different company, you can use whatever name you like. It may be better to use a completely different name as similar names may imply a relationship (people may dealing with the business may find out about the properties more easily).

Why is your accountant recommending a compnay strucuture? I would never use a company to hold an appreciating asset. Look into trusts as these are much better in my opinion.

Terryw
Discover Home Loans
North Sydney
[email protected]

It costs from $275 to $2000 to set up a trust. You could do it online, or pay an accountant (who will do it online). Check out this one:
http://www.LawCentral.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

James

I suppose one of the biggest advantages is, if your family composition changes (eg wife, kids come along), then they will usually be beneficiaries of your trust. The deed is generally vague and lists yourself, and any spouse, children etc.

Another advantage is a company can also be a beneficiary. So if you make soem huge gains and would pay more than 30% tax by distributing it to yourself, then you could setup a company and distribute to that company which would pay 30% tax.

So you have great flexibility with Trusts.

I haven’t got a hybrid, but owuld imagine you can apply for a variation in your tax.

Terryw
Discover Home Loans
North Sydney
[email protected]

If you are selling your IP, then it is probably better to wait for it to be sold to access the money, otherwise it would get complicated.

BTW, you many not have to pay CGT at all, check with a good accountant.

Terryw
Discover Home Loans
North Sydney
[email protected]

Don’t forget there are two mortgage insurers, so rates will differ. Also some banks add a little margin on for themselves, so rates may vary between banks. However you coud use the above PMI calculator as a guide.

Terryw
Discover Home Loans
North Sydney
[email protected]

I haven’t read all this post, but would like to say Chritians do not have a monopoly on morality.

Being wealthy is not a bad thing. It depends on what you do with the wealth.

Terryw
Discover Home Loans
North Sydney
[email protected]

Did you see that property investor on the front page of the Australian? She was pictured standing next to her mercedes and was quoted as owning 22 properties.

She is crazy. Going public like that will only cause problems. imagine if her tenants see her. they will think she is rich and maybe decide not to pay the rent. friends will see her and get jealous. The ATO will see her and maybe look into her earnings. She may even become a target for ‘baddies’. It is not very good to go public like that!

What do others think?

Terryw
Discover Home Loans
North Sydney
[email protected]