Westan

Yep, they get the funds for the cheaper loans elsewhere. It is the Asset lend loans that are their own products.

Terryw
Discover Home Loans
North Sydney
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Crashy, I would say discretionary trust is the best structure. it allows for maximin flexibility and offers asset protection that a company doesn’t.

eg, say you owned some shares in a company and made $18,000. you could only distribute this in accordance with the shareholding, but with a trust you could disribute $6000 each to yor 3 cousins who are uni students and don;t have any other income and pay no tax.

And if you were sued, your shares in that company could be at risk whereas assets held in the trust wouldn’t.

if you had a business, you could run it thru a company, but the shares could be held by the trust. that way all profit could be diverted tot he trust.

Losses can’t be distributed from a trust, but I don’t think a company can do this either? They are carried forward though. One good idea is if you have a capital loss, set up a new trust and then any capital gains can be discounted 50% (if held more than 1 yr) and this gain can then be distrubted to the old trust. This minimised the CGT payable.

Trusts are also cheap to setup and are not regulated by ASIC, and running costs are minimal.

Terryw
Discover Home Loans
North Sydney
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yes. But you may be able to claim more deductions.

Terryw
Discover Home Loans
North Sydney
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Good point taxman. I agree-you can have the best of both worlds.

Luckyone. I just posted about this in another question. There is a Tax Determination available at http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD959/NAT/ATO/00001 (TD 95/9).
It appears a you must live in the property first before you can claim it as your PPOR and then have up to 6 years where you can rent it out, and still claim it as your PPOR. I beleive you can still claim interest etc on the property even though you will not pay any CGT.

Terryw
Discover Home Loans
North Sydney
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I mentioned this to a real estate agent friend of mine in NSW. He was of the opinion that no licencing would be necessary to act as a spotter or a buyers agent. It is best to check with the Dept of Fair Trading to be sure. Just ring them up.

Terryw
Discover Home Loans
North Sydney
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I am not an accountant, but I beleive a time period is not stated in legislation and you should be able to claim a house as your PPOR if you live in it for just one day. But you can only have one PPOR per family (or 2 for a short period to allow moving). You can also be absent from your PPOR for a period of up to 6 years, rent it out and pay no CGT. Check this with a GOOD accountant.

Terryw
Discover Home Loans
North Sydney
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David

I agree with Melanie, but would start a new company to act as trustee, not the one your are using for business. It adds more protection in case the trustee is sued.

Bill
I had heard the high court appeal was comming up sson, but didn’t know the ATO had lost, (are you sure-it would have been widely publicised I am sure?)

Terryw
Discover Home Loans
North Sydney
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How big is it? (the studio that is[])

Many lenders will accept about 40 sq meters, but anyting lower gets hard. The smallest that I have heard about is square metres.

Terryw
Discover Home Loans
North Sydney
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Carlo

With most low doc loans you will need 20% commission. Some require you to be self employed. many also have more restrictions such as sqeaky clean credit history, and there are location restrictions (no inner city or country).

Terryw
Discover Home Loans
North Sydney
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Yes, you can possibly get a loan easily, but you will probably have to pay a higher rate ass you will be deemed a higher risk.

Terryw
Discover Home Loans
North Sydney
[email protected]