Trusts are not legal entities so cannot borrow. It is the trustee that borrows, in their capacity as trustee.

Most banks will lend at normal rates and terms to trustees, whether they are individuals or companies. Residential loans in most cases.

If a company all the directors will need to give a personal guarantee.

If a trustee is borrowing the…[Read more]

I don’t know as I am not a property lawyer, but would think this would depend on the title and any rights such as easements..

i am no property lawyer, but there can be restriction covered by covenants on title and even laws which will restrict what can be done. Strata have the additional strata laws to contend with.

He should be seeking legal advice – from a lawyer, not a conveyancer.

Yes initial repairs are not deductible. But you might be able to ‘depreciate’ them.

Nope for all of the above.

It probably means it is from a subdivision after the original street numbers were issued. Number 1 was split into 2 hence 1A and 1.

Hi VFA1

I am not taking on new law clients atm as getting too many.

You can read the legislation at s 55 of the Duties Act NSW and surrounding sections:

http://classic.austlii.edu.au/au/legis/nsw/consol_act/da199793/s55.html

The maximum fixed loan is generally 5 years in Australian

The only way to avoid duty is to argue that the parents hold their share of the property on trust for you. It would be a resulting trust that arises because of the circumstances. We have helped a couple of people transfer title without duty – or nominal duty in situations like this in NSW.

If having the property mortgaged won’t necessarily…[Read more]

Just updated my signature, thanks Benny.

nope

Refinance = paying one loan out with another

Equity release = borrowing against an existing property

To get a loan you would need to qualify in terms of serviceability and would generally need to keep lvr to 80% so it will depend on the income of the borrowers plus the LVR.

Some lenders may also not like 2 properties on one title, but many do.

What I have seen happen with CBA is that someone might put in some money into the loan today and then think they can redraw it immediately or the next day, but they have to wait for the next monthly payment to come out first. I don’t have any CBA loans atm, so have not experienced this, others have not had any issues.

So after you split the loan…[Read more]

$5k pw is about $250k pa after tax. or about $400k before that

To get to this level you would need about $10mil in unencumbered assets yielding 4% after costs. That might mean 25 $500k properties all fully paid off.

That would be very difficult to do.

To make it easier

a) structure it to be more tax effective – so you might only need $300k pa…[Read more]

I would split it first then pay $799,900 into the loan and redraw. Otherwise it might automatically close.

You would have 2 loan splits.

Also watch out with CBA as there are a few quirks. Confirm with them that you have redraw and can immediately redraw the full amount.

You just ask the lender. Generally no new application needed

risky I think

When you sell you eat up equity with the agent fees and then when you buy again you have stamp duty, conveyancing, etc So you might lose about 8% of the value.

You also have to consider the loan. Could you qualify for another loan again?

Think about the effect on the pension too – could you be over the assets test if you…[Read more]

Hi Ben

You could leave it in other investments but you would soon need to liquidate those so you could have the cash ready for settlement. Lenders will want to know where the funds to complete are coming from.

you will be paying pay deductible debt with every deposit into the loan.

should be

you will be paying BACK deductible debt with every deposit into the loan.

I am a tax lawyer with a credit licence. with lots of experience in this area. You will need to apportion the interest if you do not split, furthermore, you will be paying back deductible debt with every deposit into the loan.

Splitting a loan means making one loan into 2 (or more).