its rare to be audited.

Trusts and structures are legal matters so you need legal advice. Accountants can only give the tax advice part.

There is a well known structuring lawyer in Tas called Peter Worrall – not sure if spelling correct but a google should assist.

It is just a lease with an option to purchase and a contract of sale. Most property lawyers could do this, but try Lewis O’Brien who is a Vic lawyer experienced in vendor finance type deals.

Yes it is possible.

Very rare Colin.

At least they can blame the accountant when things go wrong. however I think with most things are going wrong, but they don’t realise it and won’t realise it until they change accountants or get audited.
And went I say blame the accountant I mean the person signing the tax return is still reponsible but they may be able to sue the accountant…[Read more]

When getting advice like this try to get it in writing so you can later use this as evidence for suing the bastards later.

Benny, you could make a claim against that accountant pretty easy..

Very messy.

If one party stops paying the other joint borrowers will have to take up the slack or they could lose the lot.

Either joint owner could apply to the Supreme Court to appoint a trustee to take over and sell and split the proceeds. This is likely to cost $20k plus if all goes smoothly.

Good summary by Catalyst – let this be lesson…[Read more]

Yes should be easy without presales. You could almost just mortgage the land and do it for cash.

You should seek legal advice on structure as there are many tax and asset protection issues to consider.

1. They rent will be taxable as per normal
2. You move on. Changing ownership would be costly.
3. depends
4. nil for a trust. ASIC fee for a company $243 per year.

Yes, I have advised a few clients on these trust deeds. There are many different versions and I quoted something like $3,000 to amend one.

Not true.

No it doesn’t mean that. Title of property that is not seized by the mortgagee remains vested in the original owner.

In that case both properties could be exempt if you sell the existing one within 6 months of acquiring the new one – seek tax advice as you need to plan.

WHile you have non deductible debt you would want to borrow 103% of the purchase price of any investment property. If you were to use cash you are virtually throwing money away each year.

You would do this by borrowing against another property – but do not use more than 1 security for 1 loan.

It is possible to avoid CGT totally yet still claim all interest if planned carefully

Contracting means self employment so does working for a company you own. this means 2 years financials.

Lenders won’t be keen on these loans even if you had a job – short term soon to discharge. Brokers will not be keen as they have to give any commission back to the lender.

All you need is a stable income source – and dreams about income from flipping don’t count, need strong evidence of success

Dont give up your day job until you have 2 years of good financials

Just because you ‘subcontract’ doesn’t necessarily meaan you are a conntractor. There are various tests to pass from a superannuation POV and a tax point of view. There are also the legal side of things — you will need your own insurance for starters.