Mate

I would buy 4 to 5 (or more? if you can qualify for high lvr loans) positively geared properties each generating $3000 each per year-using a trust of course. keep saving and keep reinvesting the cashflow into more of the same until you get what you what income wise.

Terryw
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I was going to say the same thing. I use a real estate agetnt to do all of my wraps from beginning to end. Everything could be posted to you overseas or you could give someone Power of Attorney so they can sign things for you. (Trusted Family member maybe – or i could do it for you )

Terryw
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Hi

I thought I already replied to this a couple of days ago, but my post is missing??

You could put the money in the offset account and pull it out to use for further investments. But when the money is withdrawn the interest payable on the home loan would just increase again. This portion would not be deductible.

However if you actually paid it off your home loan and then reborrowed the money again for investment purposes, then the interest on this extra portion would be tax deductible as it is for investment purposes. The net interest would be the same both ways, but the tax deductions would be increased by using the redraw strategy. It could get a bit messy attributing and keeping track of the portions-but worth it. It would be good if a second sub account or split could be set up. Check with your bank.

On $50,000, this could work out to be a bit. eg 6% interest is $3000 extra in tax deductions.

Terryw
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For some ideas check these sites out

Chris Batten Accountant and structuring expert
http://www.chrisbatten.com.au

and
Kevin Munro, Solicitors and accountants
http://www.taxlegal.com.au/
Lots of free articles on Trusts etc

Terryw
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Spocky

I don’t think this will pose any problems with you claiming all the interest. I do this now (but haven’t been audited-yet).

You and your wife could just lend yourself the money anyway. Just charge yourself the same interest rate as the LOC.

Terryw
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Sooshie

If the business has gone into administration, then the director or owner will no longer have any control over teh company. An administrator would have been appointed and they are teh ones that make all the decisions from the time of their appointment.

If is was possible to nominate another purchaser, I think the administrator would have to do it. They may agree to do so if it would generate some money for creditors.

But in Victoria it is obly possible to nominate someone without incurring double stamp duty, if you had a written agreement with them prior to the signing of the original contract.

And I beleive that the law has recently chaged and that it may not even be possible to do this any more. ie double stamp duty will be payable.

Terryw
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Jack

I understand that this is not possible, even if you have and/or nominee, without incurring double stamp duty (in NSW anyway). i have done in in Vic, but have heard the laws have changed and it is not possible down there either.

With options I think they have to be stamped by the land titles office to make them a legal document and that stamp duty is payable on this. But not sure how much or how it is calculated.

I have written options in VIc and haven’t had them stamped. I was not concerned with it too much as I was selling it not buying it.

Terryw
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I was trying to do this in Victoria and had to have another contract drawn up. In the end I never went thru with it.

You also must get finance arranged just in case they don’t settle (for whatever reason) on the same day. If the vendor give a notice to recind, you will only have 14 days to settle, and this is not enought time for a bank to do it.

Terryw
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Smoke

It depend on when you signed the contract. If it is more than 12 to 18 months ago, then yes you can get a loan based on valuation with a standard bank at standard rates. And this is with LMI approval.

If it is a shorter settlement, then you can still do it, but rates will be higher as we will have to go to smaller lenders or private funds.

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D

Watch out for fixed rates. The break costs can be very high. You never know when you may want to refiance to withdraw extra equity or when you may even sell a property.

It looks like Combank is trying to cross collateralise your loans. Maybe a better way would be to withdraw some equity form you land as the LVRs are low. You could then use this as deposit and get a 90 or 95% loan for your IP. This gives you greater flexibility in the future.

Terryw
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