Hi All,
Slowly being educated (from reading, seminars, forums and talking to people) in property investing and realised I’ve been buying the wrong investments with the wrong strategy. I am now trying to improve my financial position to allow me to start from scratch on some real investments with +CF. I’ve got a negatively geared IP (well, I though it was an IP for me at the time of purchase) in Sydney that I would like to sell via wrap. The property is a 1br + study apartment in a waterfront complex. The property is valued at about $480K and has LVR of 80% and currently rented out at $340/wk. I am planning to wrap it with a low deposit and at an interest rate 1% higher than what I am paying to the bank. I just want to get rid of it. Am wondering how’s the wrapping market is like in Sydney ? I am concern that people will not pay more than twice the rental to own an apartment.
Or do you think it will be easier just to cut my loses and sell it ..?? Any recommendations .??
Thanks.[biggrin]
J.
Hi J
What would you have to give the bank to payout their loan, including any early payout penalties (deferred establishment fees)?
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,
Not that much. From memory it was only about $1200 or so. My main concerns are vendor tax and CGT hence I am investigating whether wrapping could be an alternative.
J.
I wonder when the vendor tax would be payable on a wrap?
At sale (ie exchange of contracts) or at settlment?
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
Well, one would assume it is at settlement seeing it is a tax on the sale price. This may change during the term of a wrap if the wrappee does not buy sooner rather than later.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi Terry & Mortgage Advisor
I’ve recently spoken with the vendor finance specialist lawyer, Tony Codato about this. He tells me that vendor finance is calculated on the contract price and only payable on completion of the Instalment Sales Contract.
Another interesting point, concerning wraps in NSW, is that Land Tax can be made to disappear for both the wrapper and the wrappees as long as the wrappees use the property as their PPOR. Section 26 of the Land Tax Act.
Love that section 26
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Good stuff Paul. Thanks
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
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