Getting Finance through Trusts and LMI
- Thread starter SYD2013
- Start date
The title would be in the name of the legal owner which would be the company.
The PIT would be a fixed trust. same finance issues.
Any consideration to buying out of state? Thus avoiding going over the cap?
What about selling one or two of your positively geared properties to a different entity freeing up some land tax cap. Yes CGT and stamps but still might be beneficial?
What about selling one or two of your positively geared properties to a different entity freeing up some land tax cap. Yes CGT and stamps but still might be beneficial?
So what's the point of going to the trouble of a unit trust for a residential property when all you want is negative gearing? You do realise that a personal name gives you negative gearing?
Why? Which imaginary creditors are going to go after you which they couldn't do if you had a units in a trust? Please put it in perspective.
So...you don't insure your properties? That is after all what you pay premiums for.
And what if said tenant comes after your personal assets - which happen to be units in a trust that holds the property? What a waste of time.
Yet you can hardly ever get finance for it so what property are you going to buy?
It probably is a hybrid, but
While units are issued it would operate as a fixed trust. Otherwise there would be no land tax theshold for NsW and no ability to claim the interest as a deduction.
Don't be confused about the trade marking of the name. this only relates to the name of the trust and doesn't mean the type of trust is special in anyway..
I've just helped a friend signed some witness documents for his loan last week.
He also has a PIT from C&N. Over the last 2 yrs, he has refinanced with 3 companies. Originally it was with AMP, then it was refinance to Homeloans.
The latest which I was witnessing his signature for was with NAB.
In this instance, the loan is under his name with the Trust providing the property as guarantee. NAB had no issue with this arrangement - just may need to get legal advice etc..and get some paper signed. However, it was 80% lend and hence no LMI.
He also has a PIT from C&N. Over the last 2 yrs, he has refinanced with 3 companies. Originally it was with AMP, then it was refinance to Homeloans.
The latest which I was witnessing his signature for was with NAB.
In this instance, the loan is under his name with the Trust providing the property as guarantee. NAB had no issue with this arrangement - just may need to get legal advice etc..and get some paper signed. However, it was 80% lend and hence no LMI.
xcept that NAB knowingly dont even do Unit trusts at any LVR ............. so there has been some "nudge nudge wink wink say no more"............not a great place to be when you need Hardship provisions or seeking further equity.
Reminds of the days of wraps.............
ta
rolf
Wow, that brings back memories - wraps were the in thing about 10 years ago. And who used to say "nudge nudge wink wink..."
