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We have a 85% asset lend available. But the rates are very high and it is only for property in ‘cities’. 9.5%!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I would form a distretionary trust if I was in your situation. It would only cost about $1000, but could save you thousands.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I’ve been to his free seminars a few times (few years ago), and I got a lot of good info from it. I reckon if it is free, then worth going.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Michael
Absolutly nothing. No accounting is needed unless you trade. No Bas statements unless you register for the GST.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Steve’s program soudns good.
Did anyone see henry Kayes add in the sat SMH? He is going to make some millionares in 6 months or he will donate $1mil to charity! This is in aid of clearing up the recent bad publicity.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Michael
i don’t know what you mean by setup fees. Some of what you mention can only be depreciated. the setup cost of the trust (trust deed etc) cannot be claimed (I think) as it is not really an expense of the trust. If your trust owns a car and you use it for personal reasons, then you will have to pay FBT. So really there would be no difference in buying it under you name or through the trust. Same with an office, if you are renting you could claim the office wheter or not it is ‘through’ the trust. You can do it in your own home too, but that may expose the property to CGT when you sell.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
My company has its own 100% lend product. the interest rate is 6.45%, and some of the condition are;
Owner occupied only
max $300,000 lend
No units in buildings greater than 4 stories
no defaults
need 12 months of continuous employment
need 3% genuine savings
The LMI fee is 2.6% (!)
etcAs you can see it is very tough to qualify, as the risk is much higher. beats the Pepper product though.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
To get certain low doc loans (ie good ones), you must be self employed (for 2 to 3 years). The way banks check on this is to do a search and find when your ABN number was registered. So it may be an idea to register now just in case…..
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Insider
I agree.These loans will appear on your personal CRAA (just ask anyone who has a loan thru a trust).
You would be required to tell a bank about any personal guarrantees.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Another way, is You could borrow the 20% deposit from elsewhere (friends etc). That is the only way really.
BTW on the 100% lends out there the mortgage insurance is about 2.6% of the loan amount!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That sounds very strange and therefore I suspect it to be wrong. Can’t think of any reason why it would be correct.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If your PPOR isn’t paid off, then put you cash off that loan, and then get a LOC (or just a loan with redraw) on your home. Use this money as deposits for loans with a different bank.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You could buy 4 properties for wrapping and make approx $16,000 passive income per year.
But you would have to pay tax on this, and then pay for your rent with after tax dollars. So maybe not a good idea after all. Depends on your circumstances.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You can claim anything that is an expense related to your current earnings. If you have not IP you technically cannot claim it, but can it relate to your current job in anyway? You don’t need a business name either.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
6% return is very poor compared to average properties returning about 4%. Factor in the higher management costs, lower capital gains, and the difficulty obtaining finance and on-selling. I don’t think it is worth the risk!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That table didn’t paste very well.
The figures for High growth property are:
10% capital 5% rental return Growth on property value
Year 1 $330,000 $16,500
Year 5 $483,153 $24,158
Year 10 $778,123 $38,906
Year 15 $1,253,174 $62,659
Year 20 $2,018,250 $100,913The figures for cashflow property are:
5% capital 10% rental return
Growth on property value
$315,000 $31,500
$382,884 $38,288
$488,668 $48,867
$623,678 $62,368
$795,989 $79,599Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Vluu
It is not hard to get aloan without a job, but it is hard to get a GOOD loan! I would get an ABN number now, so that you could get a good low doc loan. Some of these need 2 years self employment history, which they prove by the date of ABN registration.
You could use the $300,000 as security if it was a term deposit. But why? You could just use this a deposits and borrow the rest.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
I consider a proeprty to be positive cashflow when the income exceeds all expenses. Positive geared is when it might be negatively geared but then positve after depreciation and tax benefits are counted.
Any property can be made cashflow positive by wrapping it. doens’t matter where it is.
You could also change a negative cashlfow into positive by converting a room into antoher bedroom for example or renting each room out separately to students (for example).
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
One of our clients is doing this at the moment. it is working really well for him nad has left him with 2 unencumbered properties. he hasn’t finished yet and will be very Rich when he does.
As long as you have a good margin in there you will not max out.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The best way to find out what a property will rent for is to ring up some agents and pretend you want to rent a similar property and see what the going rates are. If you ask the agent while you are looking at the property to buy, she/he is likely to exaggerate a little.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
