All Topics / Help Needed! / 2 questions

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  • Profile photo of 1428 12391428 1239
    Participant
    @1428-1239
    Join Date: 2009
    Post Count: 18

    hey all

    Q1
    I'm ready to get going and have finance available but before i start what business structure would you recommend to hold my property in and how many per structure.read some books on the subject but still confusing.If anyone knows any books or sites that explain it would also be much appreciated.

    Q2

    very interested in the idea of wraps, but what precautions are available should they default on their loan after a while? are there clauses you can stipulate in the contract and obviously you would have a bond.

    thanks guys

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Q1 – No one structure fits all.

    Are you buying positive / negative or neutral cash flow properties. If negative geared do you need to claim the negative geared shortfall. What is your marginal tax rate. Current expose to debt the list goes on.

    Q2 – I am not sure you have a understanding of what a wrap is as there is no bond held in an instalment contract.

    Maybe explain more and we can answer you in greater depth.

    Richard Taylor | Australia's leading private lender

    Profile photo of 1428 12391428 1239
    Participant
    @1428-1239
    Join Date: 2009
    Post Count: 18

    i have question one covered now thanks anyway im going to see an accountant

    with question two i know the idea of a wrap i just thort if  your going to do a wrap would you not take a bond incase they default on their loan which could be repaid back to them at the end of the first year or something? or is that not legal
    i thought that would be a logical precaution? please explain for me.and what other precautions are out there?

    Profile photo of shanemattshanematt
    Member
    @shanematt
    Join Date: 2008
    Post Count: 70

    It is crucial to only take advice from people who specialise in your question and are doing it them selfs right now.That means that you don't go to your local accountant for advise on buying property in trusts.They don't specialise and will almost definately won't be 100% up to date on the latest and best advise. This is a golden rule and have learnt this as I grow my portfolio.

    If you ignore this,you will cost yourself dearly.Pay for the best advise every time.

    I only use specialist for every step of the way.The cost is simply a business cost.I want them to much much smarter than me in what I am doing.

    This applies to mortgage brokers  ect (only use ones that understand property investors who buy lots of properties ect) . I sought out one who was a expert in buying in PI trusts.The difference can be huge as I found out.

    I use 'Chan and Naylor"  in sydney who specialize but there are propably others around you as I don't know where you live.I think they are national

    .Anyway,seek others who are very successful at doing what you want to do.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970

    Chan&Naylor…..ripped off!!!! and beware of HDT.. ATO is coming and haunting

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    GOD

    Be suprised how many client i have had contact me over the last few months who have nice expensive C & N Trusts and now find that they cant find a lender to finance them in this structure.

    Just to go back to the original question you dont take a bond but a deposit off any potential buyer and in the default you are required to follow the same possession proceedure that the Bank would follow. If you havent wrapped before then talk to someone who has done one or two.

    Richard Taylor | Australia's leading private lender

    Profile photo of 1428 12391428 1239
    Participant
    @1428-1239
    Join Date: 2009
    Post Count: 18

    ok thank you i will actually listen to all of that, i will find a specialist accountant, and i will talk to some who has done wrap.ok that makes sense thankyou guys

    Profile photo of vinceevertvinceevert
    Member
    @vinceevert
    Join Date: 2009
    Post Count: 1

    Hello everybody,

    I'm a newbie.

    I am also reviewing my options starting with a superanuation trust account i hold with MLC horizon 1 which is the safest investment in the MLC umbrella.  Had it since December 2004 but in recent months seems to have stalled and not growing as i had hoped. The question is might there be another product that can yield better returns at present?

    Also might need to access some funds as i face almost ceratin hardship due to possible sale of my property and buying a new one.
    My reserves are running thin being on a government disability pensioner.

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