Guide for Easy Understanding of Different Types of Land Titles

Each state and territory has a central register of all the land in the respective state and territory which, shows the owner of the land. Each state and territory Land Titles Registers provide search facilities.

What is a Land Title?

A Land Title can be best defined as being:

• the right of ownership of property, or

• the documents constituting evidence of that ownership

What are the Most Common Title Ownerships?

Here is a list of the most common title ownerships you can encounter in Australia. The list may help when you are deciding which Title applies to any property you are interested in and which Title you may require:

• Torrens Title (also known as Freehold Title), and

• Strata Title

Other Title ownerships you may encounter are Leasehold Title and Company Title.

What is a Torrens/Freehold Title?

Torrens Title is a modern simplified system of land ownership showing title to the land through a document called the Certificate of Title. This document is registered at a central registry (i.e. the government's Land Titles Office). The original Certificates of Title remain in the register, and the duplicates are held by the following parties:

• The Owner

• The Registered Proprietor, Or

• The Mortgagee (i.e. the lender/credit provider)

Interestingly, the greatest number of properties in Australia fall under the Torrens Title system as this system covers almost all Residential Title and most Commercial Titles.

What is a Strata Title?

Strata Titles form part of what can be called Strata Plan Developments and these Titles are commonly found in the following buildings because, a Strata Title allows for parts of the building (referred to as "Lots") to be owned by different owners:

• for Home Units/Apartments, and

• for Townhouses

What are the Most Common Strata Plan Developments?

Here is a list of developments that can exist under a Strata Plan:

• Residential

• Commercial

• Retail

• Mixed use (i.e. retail and/or commercial and/or residential)

• Serviced Apartments

• Retirement Villages

• Caravan Parks, and

• Resorts

What is Common Property?

Any part of a building in a Strata Plan Development that does not form part of the Home Unit/Apartment or Townhouse forms the Common Property. The Common Property can consist of any of the following areas:

• Roads, Driveways, Pathways, Fences and Gardens

• External Common Walls and Roof

• Stairways and Entrance Halls

• Meeting Room, and

• Recreational Facilities (e.g. Tennis Court, Golf Course, Swimming Pool, Gym, Sauna, etc.)

What is the Responsibility of a Strata Owner?

Common Properties are owned by all strata "owners" in proportion to their unit entitlements. The Common Properties are managed by the Body Corporate or Strata Company, and each owner is responsible for the Common Property and will share in the cost of upkeep and maintenance of the Common Property areas.

How is a Torrens Titled Lot different to a Strata Titled Lot?

Here is a list of differences between a Torrens Titled Lot and a Strata Title Lot:

Torrens Titled Lots are:

• Created under the Transfer of Land Act 1893, and

• The Transfer of Land Act does not allow for implied easements

Strata Titled Lots are:

• Created under the Strata Act 1985

• The Strata Titles Act allows for sharing of access to services and maintenance of such services (i.e. water, sewerage and electricity), and

• These services can pass through Common Property and other lots in the Strata Development Scheme

Are there any Common Features between a Torrens Title and a Strata Title?

Yes, there are some common features, such as:

• A Strata Title is as secure as a Torrens Title

• Both Titles can be bought, sold and mortgaged, and

• Both Titles have permanent tenure

What is a Leasehold Title?

Interestingly:

• Leasehold is the method utilised over government properties held in rural areas (e.g. the large cattle or wheat properties that are held under long-term or perpetual lease, and

• At times, the state governments may decide to subdivide and release the above rural properties if the area became desirable for residential development

• All land is held under "Leasehold" in the Australian Capital Territory (ACT), and

• Some old church properties are also tenanted as "Leasehold."

What is a Company Title?

There is little known about this type of title amongst the general public. The little information known is that:

• Company Titles originated almost a century ago but may still be present in some areas, and

• In a Company Title, a company will be the owner of the company complex.

What Title Tenures Apply to Retirement Villages?

There are a number of very good Retirement Villages offering different types of tenures. However, the most common Titles in Retirement Villages are:

• Freehold Titles, and

• Strata Titles

So, now that you have read about Land Titles, I hope you have a good understanding about different types of Title Ownerships. However, it is always wise to seek expert legal advice if you still require further information on Title Ownership and what Title applies to your desired residence.

Now that you know about the Land Titles that can apply to any property you are interested in, make a quick property purchase with Singh Finance. The finance brokerage firm’s finance experts will help you in getting cheap investment property finance. Contact the firm today for easy approval on no saving home loans.

You will benefit by reading about Vacant Land Loans here

Some people prefer to buy a vacant block of land released for sale in new housing estates or sub-divisions and then have a home built on the vacant land according to their plans and requirements.

How do Lenders/Credit Providers treat Vacant Land Loans?

Most lenders/credit providers treat vacant land loans like any standard or normal loan. So when you offer vacant land as security you will be able to get a standard or normal loan. However, the lenders/credit providers will require that:

• The size of the block of land does not exceed a certain acreage ( i.e. this will depend on the policy of each lender/credit provider)

• The land is preferable inside major cities and regional centers as well as rural vacant land in lifestyle locations

• The land must have direct access using all-weather road. Dirt roads are acceptable as long as they are well maintained, and the property can be accessed by a standard vehicle, not a 4WD

• The land must be within the range to be connected to the electricity grid without excessive costs

• Town water and sewerage services are not required as many Australian properties have tank water or septic tanks instead

• Fully serviced and partially serviced blocks are both acceptable, however some lenders/credit providers will not approve a loan for more than 80% of the value of the property if you are unable to connect town water

• The land can be zoned rural, rural residential or the equivalent for your state or territory

• The maximum Loan to Value Ratio (LVR) for a vacant land loan is 97%. Most lenders will lend you up to 90% LVR on standalone vacant land as security

Loan Products Available for Vacant Land Loans

You must contact a reputed brokerage firm that has access to many lenders/credit providers. Its professionally qualified and expert finance brokers will assist you in choosing any of the following products:

• Standard Variable Loan

• Fixed Rate Home Loan

• Basic Home Loan

• 100% Offset Loan

• Guarantor Home Loan

• Line Of Credit Loan

• Low Doc Home loan

• Non-Genuine Savings Loan

• Refinance Home Loan

• Bad Credit Home Loan

• Construction Loans

Do I have to Build or Construct on Vacant Land?

Some lenders/credit providers will take vacant land security with no need to construct on the property in the short or long term. However, some lenders/credit providers will require you to build a house on the property (e.g. within 6-12 months of settlement). When choosing a vacant land lender/credit provider you should consider this aspect as it could force you to refinance or change lenders within 12 months of settlement if you have no intention of building on it.

Can I get a Low Doc Vacant Land Loan?

Yes, you can get a low doc vacant land loan with a specialised lender/credit provider. However, each lender/credit provider will use different low doc assessment methods, which can include any of the following;

• With BAS Low Doc

• No BAS Low Doc

• Accountants Letter Low Doc

• Trading Accounts Low Doc

• Income Declaration Low Doc

Can I Get Pre-Approval on Vacant Land Loans?

Yes, an expert finance broker can arrange pre-approval for you. You will have the peace of mind knowing that:

• You have a clear picture of what your borrowing limits are

• Your finance request has already been pre-approved, and you will know the conditions of your pre-approval

• You have the upper hand when negotiating the sale price of your vacant block of land with the vendor, real estate agents, etc.

So, these are the reasons why getting a pre-approved vacant land loan will be beneficial for you. The current low-interest rates have never made it as easy as now for you get a vacant land loan. So, do not wait anymore. The time is NOW!

If you are interested in finding out more on vacant loan loans or any other kind of low rate residential finance, simply make an appointment with Singh Finance. The firm’s home loan experts will guide you in choosing the best residential finance package.

Quick Answers to your Questions regarding Loan Protection Insurance

Loan and mortgage protection insurance is designed to help you, and your family keep up-to-date with your loan repayments, when life events happen unexpectedly and regardless of mitigating circumstances. Put simply, mortgages or loans are often long-term commitments, so it makes sense to protect them.

Do You Think About the Unexpected?

There are a number of reasons why even the most responsible money managers may get into financial difficulty. Any of the following reasons can strike at any time and will leave you struggling to make your loan repayments:

• Change in health - due to sickness, injury or disease

• Loss of income - due to involuntary unemployment, or

• Death and Terminal illness - when cancer, stroke or heart attack, etc. may occur.

Loan and Mortgage Protection Insurance - The Benefits

There are a number of benefits you can get from having a loan and mortgage protection insurance plan in place, which include:

• The premiums are fully tax-deductible

• Financial protection (you will save your family the worry of lost income)

• You will save at tax time (you will get more money back in your tax return, and this means more money in your pocket)

• You can choose how long you would like to receive cover benefits if you are injured and unable to work

• Benefit payouts for total and permanent disability

• A benefit amount (e.g. hospital cash) can be calculated for each night you spend in hospital

• Associated accident costs can be provided to cover incidental costs (e.g. counseling and rehabilitation).

Common Questions regarding Loan and Mortgage Protection Insurance

Is Lenders Mortgage Insurance (LMI) different to Loan and Mortgage Insurance?

• LMI - is compulsory and covers the lenders/credit providers if they lend you 80% or more

• Loan and Mortgage Protection Insurance - covers your mortgage repayments in the event of death, sickness, unemployment or disability

Does the Unemployment Benefit apply if I am Self-Employed?

Yes. You may make a claim if:

• You have worked in your business (for an average of 20 hours per week) for 180 days immediately prior to becoming unemployed, or

• Your business has permanently ceased trading

What Happens to my Policy if my Unemployment Claim is Successful?

Your cover continues for death or terminal illness after making a successful unemployment claim, and your premium and benefits will remain the same.

Who will be the Beneficiaries?

• For a single life policy, the benefit will be paid to the policy owner or their estate, and

• For a joint policy, the benefit payments are made to the policy owners jointly or to the surviving policy owner in the case of the death benefit

What happens if I need to make a Claim and I have other Insurance Policies?

Upon acceptance of your claim, the loan payment protection insurance policy will payout a lump sum benefit directly to you or your estate and this will be in addition to any other payments you may receive from other insurance policies.

What if I am a Smoker now, will my Premium Change if I Stop Smoking?

• Yes. Your premium can be changed to a non-smoker rate if you stop smoking for 12 consecutive months, and

• You will need to make a declaration that you have not smoked any substance during this period

So, now that you are familiar with how "Loan and Mortgage Protection Insurance" can protect you and your family against any of life's unexpected events, contact an expert insurance broker. He/she will understand your situation and suggest the best possible insurance policy for yourself.

Singh Finance is the perfect solution for your finance and insurance needs. The firm will help you in getting affordable home finance packages. It will also make sure that you get the best loan protection insurance policy. Contact Singh Finance and get ready to make your life less stressful.

The Complete Handbook for Truck Finance

Trucks, trailers or any other commercial vehicles are important business assets required in the normal day-to-day running of your business operations. As a business owner, you are constantly faced with a number of critical decisions, whereby you have to decide - what is best for your business. So, if you are a business owner you should carefully consider a number of important factors when it is time to get a new truck, trailer or any other commercial vehicle, such as having:

• The right truck that will help to keep your business competitive

• The right truck for the work required and at the right price

• The right finance arrangement to buy a truck

Different Types of Truck, Trailer or Commercial Vehicle

Business owners can buy any of the following vehicles:

• New Truck

• Refrigerated Lorry

• Trailer

• Tipper, or

• Transporter (light or heavy)

Factors to consider before buying New Truck, Trailer or Commercial Vehicle

There are a number of factors you should take time to consider when buying a vehicle, and you should ask yourself the following questions:

• Is the truck, trailer or commercial vehicle new or used?

• Is the truck, trailer or commercial vehicle coming from a dealer, auction, or private sale?

• Has the truck, trailer or commercial vehicle been previously written-off?

• How many hours has the truck recorded?

• Is there any money owing on the truck, trailer or commercial vehicle?

• Are you considering drawing down from your home loan (e.g. equity release) to give you the required cash to buy your truck, trailer or commercial vehicle?

Finance Arrangement

Listed here is a brief summary of the types of finance arrangements available in the market place, and after you have read this article you should find choosing the right truck finance arrangement to be the simplest decision you will make:

• Finance Lease - This financing arrangement enables you (the customer) to have the use of your truck, trailer or any other commercial vehicle and the benefits of ownership, while the financier (lender) retains actual ownership. The finance lease arrangement will also enable you to free-up your capital for other business purposes.

• Commercial Hire Purchase - This financing arrangement is where you (the customer) hire the truck, trailer or any other commercial vehicle from the financier (lender). You have the certainty of a fixed interest rate over a set period (i.e. 2 to 5 years) and the flexibility of reduced monthly payments by including a final "balloon" payment at the end of the term.

• Asset Loan - This financing arrangement gives you (the customer) the security of knowing that your truck, trailer or any other commercial vehicle is an asset of your business and it offers you the certainty of a fixed interest rate, over the choice of loan terms (i.e. 1 to 5 years).

Seek Expert Advice

I sincerely recommend that you should seek expert advice from a commercial finance broker before choosing any of the truck finance arrangements because, the taxation and accounting treatments you choose may vary from option to option.

If you want to remain in the driver's seat and concentrate on running your business so that you can cover your costs, overheads and running expenses, then look no further and take advantage of professionally qualified and specialised finance brokers, because:

• They have a thorough knowledge of the finance and trucking industry

• They have access to many lenders/credit providers as they deal with them on a regular daily basis

• They can customise the best truck finance arrangement for you

• They can get you into a new truck quickly and easily

So, if you don't want to spend hours of your valuable time trying to find the right truck finance arrangement, then let a specialised and professionally qualified finance broker do the running around for you.

Find the right truck finance arrangement with Singh Finance. The firm’s team consists of exceptionally talented commercial finance brokers. They will not rest until they find the cheapest finance for you. Contact now.

Specialised Finance Broker will make Development Finance Easy for You

Development Finance is a specialised form of funding suitable only for professional builders and developers. This form of funding will require the assistance of a professionally qualified and expert finance broker who has the required skills and experience to negotiate the finance on your behalf.

Suitable Development Finance Projects

If you are a professional builder or property developer, you must speak to an expert finance broker, who will help you in understanding the finance strategy required to fund any of the following projects:

• Residential construction

• Commercial property

• Industrial property

• Retail property, and

• Land subdivisions

What Information do I need to provide?

Lenders/credit providers will look at a number of areas when they are considering your loan request. You will need to present a full proposal to the lender/credit provider, and they will require you to provide the following information:

• Your Business Plan, which should list your background, professional qualifications and your trade and project management experience

• Your experience as a property developer

• The location of your proposed development

• Development Type (Residential or Commercial)

• The profit potential of the development

• Your financial statement of accounts and personal assets and liabilities to determine your development cash flow

• The amount of equity that you will bring to the development project

• Copy of the planning consent and drawings for the scheme

• Comparable evidence for the resales

• A suitable exit strategy

Can I get an "In Principle" Decision?

When you are applying for development finance, you should have all the required information available so that the lender/credit provider can review and assess your finance proposal. The lender/credit provider will advise you:

• If it is possible to arrange the required finance for development project, and

• How long it will take to obtain an “In Principle” decision (You must remember that the lender/credit provider will make the final decision)

Why Choose a Professionally Qualified and Specialised Finance Broker?

It is always wise to start the development finance process with a professionally qualified and specialised finance broker because:

• They will help you to prepare a Business Plan, which will set out your development finance requirements in exactly the way that lenders/credit providers wish to see

• They know what the standard requirements for development finance loans are

• They can accommodate a much faster credit decision for you, provided that they receive from you all the required documents as soon as possible (e.g. your professional qualifications, trade qualifications and certificates and your previous building or development experience)

• They can structure a Customised Development Finance funding strategy that will meet your needs regardless of the size or complexity of the building or development project

• Through their extensive network of specialised lenders/credit providers and private lenders, they are better equipped to offer you access to funds for your required building or development project

• They can help you to secure the required finance so that you can fund all the stages of the construction cycle:

>> From financing the initial purchase of the land

>> Through to progressive construction draw-downs, and

>> To enable you to cover all the approval costs

So, this is what you, as a professional builder or developer, need to know about development finance. I sincerely hope this article helps you to understand why you need to seek assistance from only a professionally qualified and specialised finance broker.

Singh Finance has a team of expert finance brokers who will help you in getting the right Development Finance solution. Contact the firm today and get access to low-rate commercial finance.

Tax Debt Loans - The Quick Answer to your Tax Liability Problem

What is a Tax Liability?

The tax liability is the total amount of debt (money) a taxpayer or entity is legally obligated to pay the government as the result of the occurrence of a taxable event. Different taxable events command different tax liabilities and include, but are limited to:

• The receipt of Annual Income (i.e. money)

• All revenues derived from a business, less all expenses

• The sale of an asset for profit (i.e. real estate, stocks, liens, a patent, accounts receivables, or a claim on debts), or

• An inheritance of money or assets from an estate

How is a Tax Liability Recorded in Financial Statements?

The tax liability is recorded as a short-term liability in financial statements, and takes precedence over all other liabilities.

How are Tax Liabilities Incurred?

Tax liabilities are mostly incurred because; taxpayers (entities) are not setting aside enough cash (money) in the event of the following occurrences:

• Large increase or decrease in earnings

• Accountant errors, bookkeeper errors or tax planning errors

• A change in the circumstances of a business

• Unsound budgeting for tax obligations (i.e. accrued or assessed taxes)

Are you Able to pay your Tax Liability?

Every financial year you may be just like many other taxpayers or entities whereby you, find yourself in a situation, where you have not put aside the necessary cash to pay the tax liability you may owe to the government for any or all of the following taxes:

• PAYG Tax

• Goods and Services Tax

• Business Tax

• Fringe Benefits Tax, or

• Capital Gains Tax

What Options do I have to pay my Tax Liability?

Like many other debt problems, tax liabilities will not go away. Listed below are some options for you to consider and, which may be suitable for you:

• "Low Doc" Tax Debt Loans - when you do not have your financials

• Tax Debt loans when you have all of your financial statements available

• Tax Debt loans when you have credit blemishes

• "Fast Tax Debt" loans when you may have the Australian Taxation Office (ATO) hot on your heels

In addition to the above loans, you may be able to arrange a "Payment Plan" with the ATO. However, the payment terms may or may not be suitable for you, because:

• The ATO will usually require you to pay back the whole debt in 1-2 years and this can make your ATO payment structure plus your ongoing tax liabilities difficult to sustain

• The ATO will usually not re-instigate a payment plan if you have missed any payments, even by one day

Can I claim a Tax Deduction on the Interest Payable on my Tax Liability Loan?

• If you are carrying out business as a Company then, the interest paid on your tax liability loan can be considered as a tax deduction. However, it is advisable that you seek assistance from your accountant

• The interest on your tax liability loan is not allowed as a tax deduction if you are:

• An individual (i.e. non-business)

• Trading as a sole trader, or

• In a partnership

Can anyone help me pay my Tax Liability?

Yes, if you are unable to pay any of your tax liabilities, do not take tension. Simply contact reputed brokerage firm. It will arrange a tax liability loan and ensure that the following actions are not taken against you by the Australian Taxation Office:

• A Court Judgment

• Outsource the debt owing to a debt collection agency, or

• Even force you into Bankruptcy

So, this is how you can obtain tax debt loans and pay off your tax liability.

Are you worried about paying off your tax liability? Contact Singh Finance and put all your worries to rest with tax debt loans. You can even obtain low rate commercial loans with the help of finance experts.