Yes, generally GST only applies to new residential property – up to 5 years old is classed as new.

So asset protection from bankruptcy. strenght will depend on how set up and operated.

Income can be distributed to beneficiaries of a trust who pay tax on the income.

Most major banks would consider this – probably not on end value though. YOu…[Read more]

I am a solicitor and broker and doing both conveyancing and loan for a client. ready to settle within 3 weeks..Just waiting now for another few weeks to pass by… Not always like this though. I recall another loan that only get the approval 2 weeks before settlement.

1. Asset protection from what? Usually income distribution as cashflow would be almost the same in a trust or out
2. yes, but higher rates
3. would need to be a director or shareholder usually to guarantee a trust loan
4. GST should be same in and out of a trust

1. possiby up to 65% of end value

2. not sure what you are saying here/ once complete you could refinance into a cheaper loan product If individual titles then each title could have a separate loan – potentially a different bank and loan for each unit. IO is possible

I have been a broker for about 13 years now and never seen a loan ported. They are pretty rare. I beleive some banks do need a reapplication and a checking of income etc while others don’t, unless the loan needs to be increased.

hardly fair as the same services are used – garbage collection etc doesn’t differ between owners v tenants

Not really. Financial planners can provide a financial plan covering financial products, if they are licensed to give financial advice. If the advice relates to something which isn’t a financial product then it wouldn’t be financial advice – such as property. Anyone it seems can provide advice in relation to property – including property plans…[Read more]

Borrowing from parents? (Lending from is grammatically incorrect isn’t it?)

You should get legal advice before you do anything as there are many issues.

1. You should document this, whichever way you do it. What if a parent dies and then there is a dispute over whether it was a loan or a gift = litigation.
2. For tax purposes you should have a…[Read more]

You may need advice from different people. Only lawyers can give advice on structures and only those with a credit licence can give advice on loans and credit. Only registered tax agents and lawyers can give advice on tax matters for example.

You may be able to use these expenses to reduce the cost base and thereby CGT>

There is a benefit to cross col – to the bank not the borrower.
The bank will have more security than it needs and will make it more difficult for the client to leave – whether refinancing or selling. This will also allow them to reassess you at discharge time and to decide whether they think you are a risk or not.

https://www.propertyinvesting.com/topic/4991056-cross-collateralizing/#post-4991058

No pros only cons

Major one is when you go to sell one of the properties the other ones will need to be valued. This can cause all sorts of dramas relating timing, re-assessment of loans and requirements to pay down remaining loans (maybe reducing non deductible loans). I have seen one person who sold a property yet could not settle because the…[Read more]

Ok thanks Andrew. If no non deductible debt then it may be worth considering, but the IO with offset can have some advantages too.

Super Andrew, I disagree too regarding the PI loan on positive properties.

If anyone has non deductible debt they are basically throwing away money if they are paying PI on an investment. This is because the extra money paid is decreasing tax deductions and that money (and the tax saved) could have been used to pay down the PPOR loan…[Read more]

9.5 years of ownership, approx 20% rented so approx 20% subject to CGT.

Well there may be various things he can claim to lessen the pain – stamp duty, rates etc

I specialise in trusts as a lawyer and mortgage broker yet it is not the norm with my clients either. Possibly 20% of my clients use trusts to own real property.

Yes it would be a CGT event. No exemption if it wasn’t his main residence. And if he is a non resident then no 50% CGT discount any any gains made after a certain date (last year I think). He should seek tax advice as you should too.

He may also have to pay tax in his home country.

Death is a fact of life and I deal in this area everyday so I guess I am used to it, but don’t find estate planning around death depressing. I’ve seen a lot of problems arise which could be been easily avoided.

Divorce = yes