probably best to speak to a lawyer as a trust is a legal device, a relationship in equity and only lawyers can give legal advice. Many can also give tax advice.

If I take the 800k and put in the redraw then take it out to buy a new property, will the full 800k be deductible?

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No

It could be anything depending on the circumstances. It will depend on a lot of thing – ability to claim the main residence exemption, land tax, intention with the front property, stamp duty laws, asset protection, estate planning etc etc

Once you determine which legal owner then you have to work out how to structure the structure. If it a…[Read more]

Actually you are probably best to work out hte portions of the mixed loan now, then split, and then do the above as this might help you claim the interest on the $200k if you were to rent the current property out.

Seel specific tax advice

The loan relates to 2 or more uses.

Your loan is current $1mil right?

Part of this relates to the purchase of the current property and part relates to not much, you borrowed and put in an offset mixing with cash.

If you put $800k into a $1mil loan the balance will be $200k, but this balance partially relates to the purchase of the…[Read more]

I don’t know anything about the UK

There is no GST difference between ownership entities – in this situation, but there are a lot of other tax and non tax differences.

You now have a mixed loan, so a few issues there.

If you pay the loan down by $800k it will be mixing it furhter so you should split it. Pay $800k into a $800k split and redraw it and invest it. If the investment is expected to produce income, such as rent, the interest on this split would generally be deductible.

Deductibility is…[Read more]

This is something you would need specific legal advice on. It could be individual, company or trustee depending on the circumstances.

Ownership entity won’t change the GST outcome either. Certainly GST can apply to the sale of vacant land, especially if you subdivide and sell as you will be conducting an enterprise. Have a look into the margin…[Read more]

Lawyers and solicitors are basically the same thing. Lawyers is a generic term which includes both solicitors and barristers

try Mike at http://www.propertytaxsolutions.com.au in melb.

If you have made money you could sell and repeat the process and potentially make more (by getting more efficient). Next time consider using a company to hold the property perhaps.

Commercial loans can be done in individual names

If you are asking about ownership structure then seek specific legal advice as many issues consider.  Transfer of title or declaration of trust will both attact duty and CGT to it pays to get advice.

As a general rule you should never pay a deposit on an investment property when you have non-deductible debt

Borrow against your main residence for the deposits

You should also try to shift the investment debt to owner occupied rates as well as investment debt generally has a higher rate.

Think of the sale of the main residence as a strategy…[Read more]

It might be possible to go to separate lenders – might be hard if one contract of sale though

There is a simple way to increase deductions and that would be to borrow 100% for the construction. wait till titles are separated, split the loan and then pay down the non-deductible portion.

There is plenty of information out there. Perhaps start off looking at the loans available to SMSFs. The number of lenders is dwindling and the ones that do lend are making the most out of it with high rates and fees.

Once the trustee has purchased property it cannot be leveraged against – the equity cannot be borrowed against so think of it…[Read more]

Ah, but there could be a difference if ‘foreign persons’ are potential beneficiaries of the trust.

Best to talk to a lawyer – but no differences in duty between trustees and persons/companies.

But should you be putting the unit into trust? Possibly not.

Probably read as much as you can first and then speak to a lawyer

This is something you need legal and tax advice on – and credit advice.

Once you decide you will need to consider structuring the company and trust and how to structure the funding of it. There are traps at every step along the way.

Any specific questions please list them here and i will answer.

Unless… If it was a farm, there is a possibility of living on in the house and surrounding 5 acres.