You probably hsould do it with an older house. Some companies guarrantee to save yuo more than there fee (www.depreciator.com.au I think). Cost varies from $300 to $1000. Some are better than others, so watch out.

You probably should get them to come out as soon as your purchase, but they can do it so you can claim and amend the last 4 years tax returns.

As a guide, one of my clients purhcase an older style unit (red brick type, no pool or elevator) and he was able to claim an extra $4000 per year! So well worth the effort.

Terryw
Discover Home Loans
North Sydney
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Hi. The last time I looked at HSBC, they would only lend to an LVR of 70% for investment properties. They also are wanting to take a charge over the company (if the borrower is a company). Other than that, their serviceability model is not bad.

Terryw
Discover Home Loans
North Sydney
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Rooney

That is correct, they do not take into account negative gearing (like centrelink).

I think they have to do this as it would be easy for people to shrink their income down to $0 and avoid paying any support. I don’t know if using a trust/company is a way around it, but cenrelink want to treat assets owned by your trust as being your own if you control the trust.

Terryw
Discover Home Loans
North Sydney
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Also be aware that you will not get your profit until the place settles – which is often a while.

Terryw
Discover Home Loans
North Sydney
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Hi Wrappack.

I am just guessing, but imagine a LVR of around 65% would be possible. You could possibly do it without any cash, but I have yet to find a lender that will not ask for personal guarrantees.

Also be aware that valuations on expensive properties can vary a lot.

Terryw
Discover Home Loans
North Sydney
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No.

If the debt is $1mil, you would only get 80% of this = $800,000 less your current loan of $300,000. So that would be $500,000.

There are also many factors that the lender will want to take into account such as your income (you will have be be able to afford the repayemnts on $800,000) and what you want the money for.

Terryw
Discover Home Loans
North Sydney
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Without considering other security, it may be possible to get 80% on a commercial property if it is a good deal in a good location. But generally 605 to 75% LVR.

Valuations would be done using comparable sales (if available) and would incorporate other things such as leased amount, length of lease left, any options to renew etc. Much more complicated and more costly than residental property valuations.

There is one prouct available with Citibank where they will lend based on the rental income from the security proeprty only. max 60% LVR.

Terryw
Discover Home Loans
North Sydney
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One way would be for the Trust to be shareholder in the new company (the business). If anything goes wrong, the shareholders could not be held to be liable. Dividends would then flow on into the trust.

It is not good for the trust to run a business as if anything goes wrong all the assets of the trust could be at risk.

Better check with an accountant.

Terryw
Discover Home Loans
North Sydney
[email protected]

Shushar

Yes it is true. I had a unit myself off the plan and tried to onsell it beofre completion. No agent was interested in it. I ended ended up just rescinding the contract and walked away from the deal because of delays and lack of growth. (No penalty for me as I legally got out of the contract as it went over the sunset date)

Terryw
Discover Home Loans
North Sydney
[email protected]

$0

Terryw
Discover Home Loans
North Sydney
[email protected]