You can claim many things. Building works may be depreciated though.

Bankwest, Westpac, ANZ, Combank are all tightening up. More will follow no doubt.

That financial planner sounds like a sales person.

The type of advice you seek is not really regulated so either a financial planner, a tax agent, accountant or a broker could give you the advice. It is not the qualification you should be looking at but the style of the advisor.

This is really a question for a lawyyer as there is much more to it than the tax side

I am generally in favour of giving all loans to one bank initially to get a larger discount. Discounts are for the life of the loan so you can gradually refinance a few loans away without dropping rate. But I generally like to keep loans around $2mil per lender.

The risk comes down to missing a loan repayment or 2 and things slowly escalating. If that happens then all your eggs are in the one basket and it will be hard to take control. If you had the loans split up with the different banks you would be more protected. If cashflow got tight you could sacrifice one property and keep paying the rest. The bank would take possession of this one property, sell and repay the loans. If this is not enough they would come after other property you have with them. lastly they would go after other property with other banks, but this would be a long time later and this extra time would give you a chance to sell yourself.

In summary as long as cashflow is ok and business risks are low then you should be fine with one bank, but it wouldn’t hurt to spread them around a little bit – it could only help reduce risk. And the interest rate would probably not be any higher and may even be lower.

Tom resigning as director would likely be a breach of the mortgage agreement for existing loans. All these loans would need to be redone with the new director as guarantor. Lender would also see trustee owning existing properties with loans.

In summary – no won’t extend borrowing capacity, unless perhaps the wife has a much higher income.

Tkpurser wrote:

So in Steve’s book (0-130 properties, revised edition) starting at page 172 he talks about how once he reaches his borrowing capacity he then re-structures his family trust and then approaches another lendor.
I read in another post that this is no longer possible?
Would another bank loan money if say the original trustee (e.g Trustee Company Pty Ltd) was sacked as trustee and another company was created and made trustee which in turn the directors would then be the guarantor/s? Therefore creating a new trust structure?

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If the new company had the same directors the same problems would arise. You would also have trust assets owned by a non trustee which would cause other problems including possibly breach of existing mortgage agreements.

I don’t think directors are personally liable (in VIC), but the trustee company is. However it has a right of reimbursement out of the trust property, both under trust law and under land tax legislation. Don’t forget land tax is a first charge over the land – beats even mortgages.

CGT probably wouldn’t apply to a development, but income tax. GST. Stamp duty also. And don’t forget land tax

• This reply was modified 9 years, 5 months ago by  Terryw.

Another issue is whether a bank would be willing to lend you by securing an unrelated party’s property.