It’d be great if there were more transparency in the industry about what that mentorship actually includes, because the difference between a quick phone check-in and full file support is huge.

That is a private matter between the mentor and mentee – a contractual matter that would vary between the parties. All that the ‘industry’ requires is s…[Read more]

1. Yes its possible

2. Yes there could be better ways, especially considering the tax aspects

it could be possible where you are both borrowers or you are a guarantor. but it is generally not like by the banks, especially with a main residence, as you are liable but not getting any benefit from the loan.

Are they licenced? i.e. do they have an AFSL?

If not then stay clear, and report them to ASIC.

Did they approach you or did you approach them? I would never use a company that approached me, especially about financial matters.

caveats are used to show others that someone else has an equitable interest in the property. A legal interest is one recorded on title such as a registered second mortgage. This would be a legal interest.

A second mortgage could also be unregistered, it would then be an equitable interest. A caveat could be lodged, potentially, over the property…[Read more]

If a trust ‘gets’ a loan it will be the trustee that borrows. Where there is a company as trustee the company will be the borrower with the directors as guarantors of the loan.

If the directors set up Company B for the next purchase (whether it acts as trustee or not) it will borrow. The debts of Company A are no able to be counted as debts of…[Read more]

Brokers generally are not licenced to give tax advice so you can’t expect them to explain tax issues. Most run around saying ‘its the same thing’ and not understanding the tax issues. But it would be a good idea for them to suggest going to get tax advice before lodging the applciation.

Keep in mind too that a mortgage is different to a loan.…[Read more]

The issue is likely to be that the borrower of the loan is going to be different to the mortgagor of the property.

e.g. Trust Co Pty Ltd owns the property, as trustee, but Homer needs to be the borrower so he can claim the interest on the loan that he has used to acquire units in the trust.

The owner Trust Co Pty Ltd is the mortgagor. Homer…[Read more]

No potential to claim the main residence CGT exemption on mere intention to live in a property without actually doing so.

harder to finance means harder to sell generally.

There is some inaccuracies in your post so best to seek legal advice on land tax specific to your situation

Oh i just realised that first post was written in 2010 so 14 years ago!

Google tells me the medican is around $933,000 as of sept 2023 so she was not that far off.

Keep in mind they were predictions

Borrow to pay it is one option.

Did you do some planning before purchase so you could minimise land tax?

Financial advice is advice on a financial product. Property isn’t a financial product so you likely need finance and tax advice based on what you have written.

If you sell you will likely pay CGT and will loose future capital growth. You would also be up for agents fees and if you later buy something else more stamp duty.

Do you guestimate they will be growing more than they are costing you? if so it might be worth holding. ALso have to factor in the opportunity cost of having the money tied it, the…[Read more]

If the house is being used as security it would require a joint loan with both of you as borrowers, or 2 loans with each guaranteeing the other’s loan. Your income isn’t mentioned, but together you might be able to qualify.

Best to seek legal advice before purchase and consider entering into a deed of partition so the titles can be transferred…[Read more]

There should be no need for a private ruling for a question like this. basic tax advice should be enough.

1, Trust in NSW, but not true for most other states

2. Not true

3. Yes – a little ASIC fee plus tax returns

4 yes

5. trusts can negative gear like any taxpayer.

I am a trust lawyer and mortgage broker of 24 years and you have misunderstood a few things here.
A trust cannot borrow as its not a legal entity, just a relationship. It is the trustee that borrows. If hte trustee is a company the loan will be taken out by the company with the director giving a personal guarantee. that means it is not a debt of…[Read more]