Yes it is possible for both spouses to be on the loan but one on title. It is not easy these days because of a change in the Code of Banking practice 2 years ago, but it is still possible. Easier for investment properties though.

First thing to do would be to work out if you qualify for finance – which appears it might be difficult to do.

e) You may not be able to borrow in the future

keeping the cash in the offset accounts saves you interest but also makes that cash available for future investments too. If you paid a loan down and could not borrow any more you won’t be able to invest like you could if you hadn’t paid the loan down.

I guess the down sides are:

a) Tax – what if you need the money to buy a kidney or fly around the world?

You might be able to borrow, but the interest won’t be deductible.

b) risk

What if the worst happens, and you have a cash flow crisis?

c) retirement

Retirement could be delayed if your rents are not enough

d) Helping kids

What if you…[Read more]

whats your cash flow now? Other than from work – its it actually negative?

Is that home loan all non-deductible?

could you move into an IP?

could you sell one IP, minimise CGT, keep the loan open and recycle the loan into a new investment while using the proceeds of the sale to pay off the non-deductible home loan – without closing it?

whats your cash flow now?

I think you are misunderstanding the guarantee here. There are 2 types of guarantees

a) security guarantee where property A is used as security for a loan to buy property B.

b) income guarantees where a person’s income is taken into account for a loan with someone else as the borrower.

Here we are talking about income guarantees. A brand new…[Read more]

I think you have confused things a bit Benny

A trust is not a legal entity, it is just a relationship. But for tax purposes a trust is treated as a separate entity.

So when a company borrows as trustee to buy real estate, it will be the trust the claims the interest and receives the income. The company is only the legal owner and the legal…[Read more]

When a person acting as trustee borrows they are the borrower, personally liable and indemnified out of the trust assets. If things go wrong their personal assets are at risk.

When a company is acting as trustee it will be the borrower, the company personally liable for the debt and indemnified out of the trust assets. If things go wrong the…[Read more]

That is probably just loose wording. People talk about trusts borrowing all the time, but when you dig down it is the trustee borrowing in their capacity as trustee.

What does the book say?

Keep in mind it will be difficult to qualify for a loan with that income.

What are you trying to achieve?

CGT = proceeds less cost base

cost base would be apportioned between the 2 on a reasonable basis. Might be based on land area or valuation generally.

seek credit advice. There are over 350 ways to increase borrowing capacity – but not all will be relevant to you, but a large number would. These include things such as reduce other debt, reduce living expenses, convert bonuses into salary, extend loan terms back to 30 years, get lower rates, use different lenders, low doc loans (without lying),…[Read more]

A member of a superfund could potentially buy off the trustee – but seek legal advice as many issues.

I would never consider buying a company title property myself, some do it for lifestyle reasons

in Sydney many old properties in the city or kings cross area are company title, but I don’t think a good investment generally

not if you are a beneficiary of that SMSF

Its hard to say.

Do you think the value will increase?

are you able to borrow?

Is it holding you back in some way?

Its a mistake to think a ‘trust’ equates to asset protection.

It comes down to several things such as

a) terms of the trust deed

b) structure of the trustee

c) funding the trust

d) documenting things

e) transactions

As an example I have seen many people that might set up a trust, usually with an accountant, who have never read the deed.…[Read more]