Thanks guys

The giftor will not be registered as a settlor but will supposedly be treated as one for the purpose of ‘not being able to ever be a beneficiary’.

I would like to read the specific legislation, but I’m not sure…[Read more]

For discretionary trusts, unless you have a family trust election, basically any change to the potential beneficiaries will cause all quarantined losses to be void. This makes it very tricky to…[Read more]

I’ve checked with the ATO, they think it’s ok to quanantine the losses but they will verify and get back to me within 48 hours.

Cheers,
Carl

1) Settled my first property (Richmond Vic) in May (as PPOR, thanks for the grant Johnny).

2) Got most of my tax back thanks to Timbercorp

3) Partly restructured my IT business which is trading as trust (lets make things more complicated)

4) Pooled my super and invested in the…[Read more]

Shares 60%

If a contract was signed today and/or nominee, then the trust was transferred into the person’s…[Read more]

The initial contracts will probably be signed and/or nominee by someone else anyway, who…[Read more]

Cata, in my situation there would be no need to sign and/or nominee if the trust was in place, unless you just wanted to do that ‘just in case’. Who knows what can happen by settlement…

Cheers guys and thanks again.

Some accountants have told me that when you use and/or nominee the nominee must be an entity that existed at the time that you signed the contract. The logic being that you can’t intentionally nominate something that doesn’t exist. But you think this is ok as long as the entity is set up before settlement? That would be more convenient in…[Read more]

If this was indeed the case I would find it rather disappointing since people like…[Read more]

What’s your take on capitalising interest payments using a line of credit for an investment property? Lets say for argument’s sake that the person in question had no non deductable debt and that the rent from the property just hit the LOC as it arrived..

Cheers,

Ok, so lets imagine that my GF is not going to be in a position to buy any property in the next while, and the purpose of the loan/investment is just to save up for a deposit for a property, then her servicability won’t become an issue until she wants to use her capital, redeem her…[Read more]

When writing a formal loan agreement between myself and my trust, I gather the agreement is between myself and the trustee of the trust. So if the trustee is a company where I am the sole director, the signatures on the bottom of the page would both me mine. Can you see any issues with that, or is that sort of thing…[Read more]

They hadn’t actually planned to take my GF off the title, at least not yet. As far as I know her mum was just going to take her off the loan, so the facility was in her mums name only.

Is it fair to say that with the two off them on the title (as tennants in common, 99/1 split) there could be two facilities, one in the mums name at…[Read more]

Ok, so this is how it would work then, in theory:

– I borrow 10k, buy units for 10k in the HDT
– margin loan size is 10k
– lets imagine funds yield $2000 for the year
– $800 is used to pay interest on margin loan
– $700 is distributed to me which I declare as income and use to pay the interest on my loan, which is…[Read more]

Yup, I did. In hind sight it’s pretty obvious that he meant that the TRUST would hold shares, not him holding shares in the trust. I gotta learn not to reply to posts when I havn’t had enough sleep

How did the bangkok property work out by the way?

I’m relatively new to property investing myself and far from an expert. However, I’ve read a lot of books and other material from both the ‘positive cashflow’ camp (Steve McKnight, Robert Kiyosaki etc) and the ‘capital growth’ camp (pretty much everyone else), so lets just say I’ve heard both sides of the story many times over. After…[Read more]

Stamp duty can’t be claimed period. However I believe that since loan establishment costs are claimable over 5 years normally I’m sure you could claim what remains of this. I.e. if you lived in it for, say, 12 months you can claim 80% of the costs over the first 4 years of renting it out.

Cheers

I’m in the same boat with my first property, and I’ve decided to just leave it as is and buy properties in trusts from now on. One set of deductions now and one potential income stream in the…[Read more]

As far as I’m aware if the title is in X’s name and Y is only a guarantor for the loan all income and deductions have to be claimed by X. The only way Y is entitled to deductions is if the loan is in both X and Y’s names (not sure if that it possible without the title also being in both names).

There are a number of ways to equally split…[Read more]

Richard, I will still take up your offer and run my whole situation by you. Email will be inbound.

Redwing, if I hold the loan and purchase units, then rent the property from the trust myself, I loose the negative gearing benifits because with that setup the ATO will view the property as being used for private purposes. However if the loan is held by the trust and not me, I understand that this is not the case. I’m…[Read more]

I would also like data about median rental yield and interest rates. If anyone is sitting on this, or know where this data can be found please let me know.

By the way, the property was bought long after the 80s, probably around 95-96.

Cheers,
Carl

You’re right, starting at the start would really be to just build one house. However, unless all 3 partners went into the development as a joint venture there wouldn’t be enough capital to get the ball rolling yet. I’ve always been told that when developing as a joint venture it is a top idea to keep separate titles,…[Read more]

If drawing on the homeloan can’t provide tax deductions through interest/rates/repairs etc then it might be a better idea to just pay the homeloan out, then use the house as security and finance an IP 100%. Then there would be no question that the borrowed money was used to produce income. Is that possible?

The…[Read more]