I take it you may be refinancing?

You need to think of the tax aspects. Which ever way you do it the $50 could still be available but one way may mean yuo pay more tax.

I just sold 5 acres in Tahmoor a few years ago. Prices have been booming.

I suggest your dad seek taxation advice urgently. It could be worthwhile changing ownership now before sub-divison as this could save tax and possibly stamp duty. You should also carefully plan how you are to receive this money – from both a legal point of view (estate…[Read more]

Are you appropriately licenced?

You could charge a fixed fee or a % fee. Whatever the developer is willing to pay.

lea wrote:
Thanks for your response, Terry. The properties are all in or around Adelaide. I'm not sure that same law applies in terms of stamp duty in South Australia, unless it's been court ordered, so I think he would need to pay stamp duty on the full purchase price.

In that case then I don't think there are any concessions in SA, but am…[Read more]

If in Victoria a property can be transferred between spouses at full market rates without stamp duty. So you could possibly sell your former PPOR to your husband who could borrow 100% to buy it. Funds released could be used to pay down the non deductible debt. This could greatly improve your tax position for minimal outlay.
But seek legal advice…[Read more]

I would suggest it all depends – if you sold those properties could you make more money elsewhere?

Current balance of your super should only be one thing to consider when opening a SMSF.

Balances will grow with each pay cheque.

There are also estate planning reasons to open a SMSF too – taking control of your super benefits and ensuring they are properly taken care of if you were to die.
I've just done a SMSF loan with ST George and it went…[Read more]

How is the fund performing so far? It must be just over a year old now.

1. Plan so that you can remain a tax resident – otherwise you could lose this status – seek legal advice on this from your accountant or lawyer.
2. This is a statement not a question! That sounds cheap to me
3. If you are not working it may be hard to demonstrate serviceability.

You have $80k but it would still be a good idea to use none of your…[Read more]

Welman wrote:
Thanks, TerryW.

Taking further the above examples. In a hybrid Trust scenario where a person borrows money to buy Units in the Trust, and the Trust buys the property, the Trust earns $20,000 a year of rental income with expenses of $5000 and depreciation $10000.  Therefore the net income of $5000 is distributed to unit…[Read more]

djjk wrote:
Terry thank you so much for your assistance.  I do realise that it reads as though my mother is trying to rort the centrelink rules, but we are only trying to make sure we structure our affairs correctly.  Would you recommend a property/estate planning lawyer or financial planner?  I have zero respect for financial planners but maybe…[Read more]

Yes, it should be achieveable.

If you are not paying any interest then the cashflow from property 1 would be the rent of the property less about 25% in costs. You don't indicate what this would be but if your loan is $250k then the value may be around $300,000. At 5% yield the rent would be around $25,000 per year. Less 25% for costs =…[Read more]

Plummer wrote:
Is your mum even going to be entitled to get the government pension?

I don't know a huge amount about the criteria but I can only assume that someone with a $500k house/unit mortgage free, $2,000/month passive income for the next 20 years plus $500k in the bank isn't going to be entitled to a whole lot. If the $500k is earning 5%…[Read more]

i agree with Richard. You need some good legal advice and possibly financial advice.

Stamp duty on $1.5 mil is a lot of money and there may be ways to keep things as they are and still each get what you want.

NHG looks like you have 197 posts to me.

2cmerich wrote:
I Have just sold a property in Sydney, and the contracts have just exchanged today. I am anticipating to Settle by Friday next.

I have a burning question and that is relating to stamp duty!

I have a double settlement!

My conveyancer is insisting that I need to pay Stamp duty??????

I have read/heard that because I am not…[Read more]

niccy3768 wrote:
Hi Terry

Thanks for your comments.  Do you think there is any way this situation is salvageable?  I am trying to decide whether to sell/rent property one at the moment.  Is it too late to structure things differently?  I am not settling on property two until the 1/5 and am at a loss as to how to proceed to my benefit.

Thanks…[Read more]

niccy3768 wrote:
Hi all

This is my first post, and I need some advice from more experienced people please.  I have been living in property one for the last 8 years.  I have always paid $200-$300 extra on the  mortgage every week.  Therefore I accumulated an extra $50 000 in the redraw account.  I also received an inheritance and put that $50…[Read more]

Welman wrote:
Thanks, crj.

crj wrote:

If your trust is a unit trust and you have borrowed money to buy the units even if that borrowing is secured by property owned by the trust …then you might be able to claim the losses eg borrow $400,000 to buy units in trust, trust buys property for $400,000.

It is interesting to know this scenario…[Read more]

Good work Jessica. You have basically doubled your money within a year and a 13% yield.