How to use YOUR TRADING PROFITS to buy a house (Tax & Company Setup)

Summary

In this insightful video, the speaker shares their journey of buying a house through trading, detailing the steps taken to set up a sole trader ABN and navigate the loan process. They discuss the importance of consistent income for loan eligibility, the advantages of using a broker, and the significance of property research. By emphasizing patience in the house-hunting process and offering tips on analyzing property growth and rental yields, the speaker provides valuable guidance for aspiring homeowners looking to leverage their trading success.

Takeaways

• 🏡 Buying a house was once a distant dream, but consistent success in trading made it possible.
• 📈 Setting up a sole trader ABN is crucial for qualifying for a loan by proving consistent income.
• 🗓️ A minimum of one to two years of income is often required by banks for loan eligibility.
• 💰 Business expenses can be written off for tax purposes, helping to reduce overall tax liability.
• 🔍 When searching for a property, consider future growth, infrastructure, and rental yields in different suburbs.
• ⚖️ Properties priced under $600,000 can be challenging to find, requiring thorough market analysis.
• ⏳ Take your time in the home-buying process; rushing can lead to poor decisions.
• 🚫 Avoid auctions unless you are sure of a fair price; they can lead to overpaying for a property.
• 📊 Utilize analytical tools to evaluate market trends and property statistics for informed decision-making.
• 🤝 Going through a broker may simplify the loan process, especially for first-time buyers.

Q & A

What significant milestone did the speaker recently achieve?

The speaker recently bought their first house.

How did the speaker feel about their ability to afford a house a few years ago?

The speaker believed they wouldn't be able to afford a house for at least another 5 to 10 years.

What advice did the speaker receive from a colleague in real estate?

The colleague advised the speaker to set up a Sole Trader ABN to help with securing a loan.

Why is setting up a Sole Trader ABN important for getting a loan?

Banks typically require 1 to 2 years of consistent income to qualify for a loan, which can be demonstrated through the Sole Trader ABN.

What was the speaker’s experience with income from trading?

The speaker achieved five-figure payouts from trading, which allowed them to leave their job and pursue full-time trading.

How did the speaker navigate the loan process?

The speaker chose to go through a broker rather than applying directly to a bank, finding it easier to secure a loan that way.

What are the income limits for the First Home Buyers Grant?

To qualify for the full benefits of the First Home Buyers Grant, the speaker indicated that an individual must earn under $125,000 per year.

What key factors did the speaker consider when looking for a property?

The speaker focused on location, growth potential, future infrastructure developments, and rental yields.

What advice did the speaker give regarding property purchasing?

The speaker advised not to rush the buying process and emphasized the importance of thorough research.

What is the significance of securing a loan in the home-buying process?

Securing a loan is crucial because it enables individuals to purchase a house; without it, they cannot proceed with the buying process.