澳洲Australia property How do I pull off a Herculean feat and ge


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


I live in a property I rent for $850 pw. I sublease the additional bedrooms and bring in $1300-$1500 pw depending on the time of year and whether a couple or a single are renting.
The house has just been put up for sale and I’m scared I’m going to become homeless. I would really like to buy it and pay off a mortgage. However I’m somewhat doubtful I anyone would give me the loan for it.
I believe the house will sell for around $900,000.
I currently have a measly $55,000 in the bank in Australia. I also have no provable income. I make the majority of my income in off shore business ventures and don’t bring that money back into Australia. I currently own 5 properties overseas but I guess that doesn’t count for much either.
Is there any way I can acquire a loan to buy the house?  

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A couple of questions, do the landlords know that you are subleasing their property?
Do you pay tax on income from os? Do you live in this great country without contributing?
You could sell off some of your OS property and add to your deposit and declare income and then perhaps you could qualify for a loan  

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The owner is aware of the subleasing. I take extreme measures in the upkeep and looking after the property which I think satisfies them.

Of course I pay tax on the income from overseas. The tax goes to the US government where the incomeis attained and remains.

Any dismal income I have earned in this 'fine country' has also been taxed by the government here.  

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Hi GF

Your US income may be able to be used as "income" for servicing an OZ loan, as long as this appears on your oz rtn as offhsore income with the US credit applied.

The 2 issues I see

1. After costs , your deposit is 10 k.................you really want 20 %,
2. The sublease rent wont generally be acceptable unless you have the rooms signed up on a separate lease, AND you dont live there yourself.

How well do u know the owner ?


ta

rolf  

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Your immediate problem is going to be the deposit. For a purchase of this size you ideally need to have 20% of the purchase price in addition to purchase costs.

Your next challenge would be affordability...  

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Hmmm I think you're going to have big problems. Unless you go lo-doc of course, do you have an ABN for the last 2 years?  

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PT_Bear said: ↑
in additional to purchase costs.Click to expand...
Don't forget stamp duty alone with be around $40,000 and payable on settlement  

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They say you need to learn to stand before you can learn to walk...... and you seem to be trying to leap tall buildings before you can stand.

Look into doing something more manageable. This is beyond your situation as it is right now. Plan what you would need to do and readjust your life to match, so that you are better prepared in the future.  

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Try to sign a long lease now...it will buy you some time, and maybe discourage new buyers.  

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Thank you to all who came forward with advice! I thought I was dreaming and indeed I am. I’m not quite Hercules so the house and mortgage is seemingly out of my reach at this point in time.

PM me if you're an investor with a spare $900,000 and I'll send you the details of the house. It come pre-tenanted with a long term, reliable tenant who takes exceptional care of the place.  

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good_fortune said: ↑
The owner is aware of the subleasing. I take extreme measures in the upkeep and looking after the property which I think satisfies them.

Of course I pay tax on the income from overseas. The tax goes to the US government where the incomeis attained and remains.

Any dismal income I have earned in this 'fine country' has also been taxed by the government here.Click to expand...
Wait a minute.

You said that your "dismal" income "here" is taxed by the Australian government, and yet you bring in 1300-1500pw subleasing a property that you pay 850 for, hence bringing you a profit of 450-650pw, or 23 400-33 800pa, or an average of about 28 000pa, plus you live rent free year round.

You have 55 000 in the bank. You clearly state that you pay tax on US income, state that you live here without bringing any of your overseas income to this country, seem upset that you are taxed by the government in the country in which you reside (which happens to provide services etc which facilitates your profit of approx 28 000 plus free rent plus a safe place to live, which, by the way, is what the average person working 40 hours a week would expect at best), and when speaking about income, did not specify whether or not you pay tax on the rent you receive, saying that you pay tax on "income", which the average person reading your story would likely perceive as being employment income only.

Need I go on about what I think of your likely behaviour and expectations in this "fine country"?  

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is there a way of using vendor finance?  

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Ocean Architect said: ↑
Wait a minute.


You have 55 000 in the bank. You clearly state that you pay tax on US income, state that you live here without bringing any of your overseas income to this country, seem upset that you are taxed by the government in the country in which you reside (which happens to provide services etc which facilitates your profit of approx 28 000 plus free rent plus a safe place to live, which, by the way, is what the average person working 40 hours a week would...,.

Need I go on about what I think of your likely behaviour and expectations in this "fine country"?Click to expand...
Yep reeks of tax avoidance but happy to proven wrong  

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Why does everyone have to assume that people are tax dodging when they're trying to earn a living? Just because PAYG employees can't delay payment of their tax doesn't mean that those who have businesses are doing anything to defraud the government...  

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Yep I'm jealous  

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I thought he had "roommates" and living there, and not subleasing.
I'm not sure he knows the difference, thus why he used the word subleasing.
With one you claim as income, the other you don't.  

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I doubt the Australian tax office makes this distinction actually. If you receive income you declare it. If you then on pay that income to the landlord, it can be an expense. Certainly if the income you recieve is more than what you pass onto the landlord, the extra needs to be declared and tax paid on it, whether called sub leasing, co tenants, room mates, roomies, friends, family or strangers.  

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good_fortune said: ↑
I make the majority of my income in off shore business ventures and don’t bring that money back into Australia. I currently own 5 properties overseas but I guess that doesn’t count for much either.
Is there any way I can acquire a loan to buy the house?Click to expand...
You do realize that if you have 50% ownership in any of those offshore companies, you must declare your income in Australia and pay taxes in Australia because you are domiciled here. The only way of avoiding this is if you move to another country. You should talk to your accountant asap.

I've heard this is the argument they use. Otherwise people would be setting up businesses in HK or Ireland where there is 0% -15% tax, setup offshore bank accounts in Swiss, then live here and claim they pay their tax offshore.

It doesn't work that way and you'll eventually get busted when they match your info using Austrac, which gets applied everytime you transfer anything over $1k. E.g. You transfer $10k overseas to your Australian bank account, the system checks your ownership and sees that you have no ABN, have filled no proper tax returns, etc. There was some lady recently that got busted for having sent up to $600k through a 6 year period through Austrac searches. She now has to pay back $900k in interests, fees, etc. :eek:

You might now realize why some super high paying athletes have given up living in Australia and have gotten citizenships on free tax haven shelters. If they could live here and earn their high income offshore, they would of done it years ago. Heck, all the US CEOs could come here, work here all year, and then state that their company is overseas, so they pay no Australian tax.. See the problem?  

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cloudyday said: ↑
You do realize that if you have 50% ownership in any of those offshore companies, you must declare your income in Australia and pay taxes in Australia because you are domiciled here. The only way of avoiding this is if you move to another country. You should talk to your accountant asap.

I've heard this is the argument they use. Otherwise people would be setting up businesses in HK or Ireland where there is 0% -15% tax, setup offshore bank accounts in Swiss, then live here and claim they pay their tax offshore.

It doesn't work that way and you'll eventually get busted when they match your info using Austrac, which gets applied everytime you transfer anything over $1k. E.g. You transfer $10k overseas to your Australian bank account, the system checks your ownership and sees that you have no ABN, have filled no proper tax returns, etc. There was some lady recently that got busted for having sent up to $600k through a 6 year period through Austrac searches. She now has to pay back $900k in interests, fees, etc. :eek:

You might now realize why some super high paying athletes have given up living in Australia and have gotten citizenships on free tax haven shelters. If they could live here and earn their high income offshore, they would of done it years ago. Heck, all the US CEOs could come here, work here all year, and then state that their company is overseas, so they pay no Australian tax.. See the problem?Click to expand...
What if you owned two companies - company A, which you own 49% of, and company B, which you own 100% of, with company B owning the remaining 51% of company A, and an agreement between all parties (company A company B and you) that company B pays all of their profits to the 49% owner of company A. So at the end of the day, company B makes no money, and so you pay no tax on that, with company A making all of the money, but since you only own 49% of that, you don't pay any aussie tax on that either.

No doubt if you tried to argue that one in court the judge would laugh in your face, but still :p  

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