Hi Everyone
I’m in the midst of my first wrap and wondering about whether or not I should be getting morgage insurance and then paying the stamp duty on that.
This wrap is going to be flipped too in that the settlement date for my purchase will be the same day that the wrappe takes possession. I’m not ‘owning’ it for any period where there is no wrappee involved.
What do most people do about mortgage insurance in this case?
Thanks for all inputs
Jen[evo]
Are two lots of stamp duty paid in this case? One by you and one by the wrappee?
My solicitor told me by having the wrappee sign a contract obliging the wrappee to buy the house under said conditions, there will only be one stamp duty to pay. In fact, the solicitor emphasised that this procedure would avoid messiness re stamp duty as opposed to ‘signing over’ the purchase using the nominee part of the purchase contract.
Any thought about mortgage insurance please?
Ta, Jen
Sorry, I don’t understand what you are saying.
You are wrapping, yet onselling on the same day?
Terryw
Discover Home Loans
Mortgage Broker
[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
Oh. I think it has sunk in.
You are purchsing a property, and the wrappee is moving in on the day you settle. I was wondering why you would need a loan if flipping.
You will not be able to get mortgage insurance for a property to be wrapped (if you tell the lender). If you don’t tell, then it may be possible, and this will mean less of your money is in the deal, saving more for the next deposit.
I don’t know what your solicitor is talking about. You will have to pay stamp duty when you settle, and your wrappees will have to pay stamp duty on their purchase too. The timing will depend on the state. In NSW, it would be within 3 months of exchange, in VIC I think it is on settlement – ie cashout.
You could not use and/or nominee as this would have mean’t the title would be in their name and you could not get finance over the property.
Terryw
Discover Home Loans
Mortgage Broker
[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 must be logged in to reply to this topic. If you don't have an account, you can register here.
