Dear Steve
Thanks for your news letter and continued contact.
I am after some advice
My partner and I own two properties.
We have a $280,000.00 mortgage over both.
They are worth approx. $400,000.00 each.
We would like to have a secure financial future.
My name is on the title of one and my partner’s on the other.
One property is tenanted.
We have no tax advantage schemes in place.[SALARY SACRIFICE ,NEGATIVE GEARING ETC.]
My partner has an income of about $50-60,000.00 per annum gross.
I have a lower income depending on employment options pursued. $10,000.00-$45,000.00
ARTISTS ARE ALWAYS POOR.
Are there any strategies that you could suggest that might allow us to lessen our
mortgage commitments legally through tax breaks or property restructure ,with a view to owning both properties freehold before we retire. Thanks GlennHi Glenn
I’m sure some of the excellent mortgage brokers who are members of this forum will be able to set up some form of “line of credit/redraw” loan for you. With this type of facility in place, you will have access to funds for future investments.
While this facility is being put in place I’d suggest you get your real estate education underway (although you’re doing pretty well already). Initially I’d suggest you read a small book called “How To Legally Reduce Your Tax”, have a good look at all Steve’s products and have a look at Rick Otton’s website.
Good luck.
Cheers, Paul
Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540Talk to us about Wrap Training Joint Ventures.
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Paul & Karen, Great call. The LOC facility was my first thought. Then again using that wisely is generally the key issue with most. I could also think of a couple of other solutions Pseudo Lines of Credit etc which may have effectively the same result and minimise the risk, whilst maintaining the advantages of an LOC.
Depanding on your personal situation Age, desire to own more property, savings etc will be the deciding factor in which loan product is right for you.
Speak with someone who has your long term goals in mind, and you should be well on the path to the freedom you seek…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi Glenn
As Stuart & Paul have already mentioned an LOC or similar will give you flexibility and an ability to increase your borrowing to enable you to invest in other areas.
You appear to have good equity in both properties so i would be checking that your loan structure is correct and that you are diverting all your funds into your non tax deductible home loan and merely servicing the interest component on the investment loan.
Ensure that you direct other generated incomes into the loan and you will be suprised how quickly the principal will start to fall.
Given the variances in your income levels and the apparant fluctuation a Trust structure is worth considering which will give you both Asset protection as well as the ability to decide at year end to whom the income distributions would be made to.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks for the informed replies to my post, Paul, Karen, Stuart and Richard. I have ordered the book and am investigating all suggestions offered. Cheers …………………….Glenn
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