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]

Yes I agree. But I suggest you get the deed reviewed by an independent lawyer before finalizing. Also make sure you are contracting with an incorporated legal practice so you are covered by the lawyers professional indemnity insurance. If you are supplied by a company that isn’t a law firm you won’t be covered.

I have reviewed a few of these…[Read more]

my website is terrible and they are getting all updated at the moment.

my advice is for you to seek specific legal advice when setting up a trust – from a solicitor with a practicing certificate.

1. comprehensive legal advice is needed.

2. you or the entity would probably want to borrow it if possible. no relevant information given. have you a paid off main residence? Excess cash  you can use etc.

3. heaps – death, family law, incapacity, bankruptcy, land tax, stamp duty, CGT/Revenue, serviceability, income tax, asset protection, estate…[Read more]

Westpac do it also

Changing to IO will result in a reassessment.

Have you spoken to the lender to see if they will allow the substitution of security to a term deposit?

take the profits and apply for a new loan is the best way.

If you need to keep the loan open see if the lender will allow it firstly. Your only choice would be a term deposit at the prevailing interest rate. The only way to mitigate this is to keep the period between sale settlement and purchase settlement to a minimum.

Not available as far as I know

That option is available, but the interest could not be deductible because it relates to a use which is non-income producing.

There is no such thing as a standard trust. There are multiple ways that the deed can be worded and these will have long term affects.

Don’t see an accountant as this is legal work, see a lawyer and get an idea, with their help on how to structure the trust and word the deed.

Answer is not correct – generally. When someone behind a trust…[Read more]

I am a trust lawyer – what is straight forward about trusts?

Here is one question to test you – what happens with the assets in a trust when you die?

Best to seek legal advice.

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.