332. What is a hybrid loan? – Andrew Boss, Austrata
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Andrew Boss of Austrata Finance joins me to explain “the Holy Grail” of strata lending – hybrid loans – and share how his company’s product gives strata owners the financial flexibility they’ve always wanted.
Links mentioned:
- Get the transcript here!
- Video about the Austrata Hybrid Loan
- Austrata Finance Website
- Austrata Finance contact number: 1300 936 560
- Austrata Finance email address: info@austratafinance.com.au
Very interesting. So do the loan payments and repayments appear on the Lot ledgers? I thought that only levies could appear in the ledger
Wow! Congrats Andrew and Austrata Finance, it’s very timely. Hope you make it to WA soon as the longer term impact of recently (2020) legislated 10-year plans means many strata companies are under-funded. It would be helpful if there is an opportunity for loans of less than $1,000,000 to give owners of smaller schemes hope. Many thanks.
If all owners pay the levy, including the owner who contributes the full amount rather than borrowing, how does Strata account for the interest and fees, which the owner contributing upfront wouldn’t need to cover?
With the owner who pays upfront,getting ‘income’ each month from Strata, has consideration been given to any tax implications on that being considered taxable income by the ATO?
My first thought too. In the example with $1 million between 10 owners, the ‘borrowers’ pay about $8,000 a year in interest. Anyone paying in full gets $8,000 in income that is taxable. At the time of the example they would have been lucky to get 1.5% or $1,500 from the bank. By paying in advance they may be up for $3,200 extra tax every year for the term of the loan- more if the loan rate is variable and increases. Need good tax advice.
Do you service Queensland?
Yes, Andrew mentions in the chat that Austrata is serving QLD.