fredo_4305 wrote:
Hi Guys. Property is in QLD. I can see its likely ill be required to pay both again. I think its BS and money grabbing as its only removal of a name. But thats life I guess.

Not merely removal of a name – changing of legal ownership. Not much of a bigger change than this.

Generally treated the same for tax reasons. But succession is the main one to consider.
eg. if TIC you may leave your share to a testamentary discretionary trust so as to take advantage of extra tax benefits for children, general tax streaming benefits and asset protection. you may get the will drafted so that there is the option to take a…[Read more]

Actually, if paying cash you may want to consider setting up a fixed unit trust to own the property and the SMSF to own the units. This may introduce some flexibility later….

I am pretty sure every state would have stamp duty exemptions for the break down of a relationship. NSW does.

This is a very complex question and the answer will vary depending on a number of factors – you need to seek specialist advice. If you demolish a house you may lose the main residdence CGT exemption for starters. And because you are doing a development there may be a chance that this could be assessed as income. GST needs to be considered as…[Read more]

Think very carefully about this. a SMSF can only borrow to acquire an asset. So once it is purchased there can be no release of equity or setting up a LOC etc.

You may want to consider getting an IO loan with a 100% offset account at 80% LVR. Park the cash in the offset account and pay no interest but still have the cash available if need…[Read more]

No 505 discount for non residents. But, depending on your circumstances this could still be exempt as your main residence. Seek professional taxa advice.

Nu2oz wrote:
Thanks for your reply Terry,

The idea is to look for distressed property and then assign it to an investor for a fee.
This is called wholesaling in the USA, and I'm interested to know if it can be done (legally) in Australia ?

Could be done in theory, but would be difficult in practice. What are you assigning? Legal lnterest =…[Read more]

It would be legal but there are many implications. There is a whole branch of law concerning the assignment of various interests in property. What are you trying to do?

ritchiematheson wrote:
Jim, be very careful on how you proceed with this.
It can land you in a lot of hot water with the ATO. and on the face of it (if you do not declare the facts, it is fraud)

As stated in requirements of the grant (which is a reasonable sum of money, please don't forget this. Its a privilege in Australia not a right) you…[Read more]

see s118-145 ITAA 1997

Not necesarily fraud if you are not living there. You would have to look carefully at the relevant legislation.

To avoid CGT you need to live in the property inititally. You could then move out for up to 6 years and keep it CGT exempt while rented out – depending on the circumstances.

Why not just live there? What will you be doing for the first 2 years? You could poissible make it CGT free by living in it initially.

Good news. Considering the penalties in China and the lack of proper legal process I find it amazing that anyone would give it a shot. The penalty is often death without a fair and proper trial.

2 issues here

1. You cannot reimburse yourself
2. Part of the loan will be not deductible as a result, ending with a mixed purpose loan.

There is a simple solution. Borrow the $60k from someone else, properly document it, and then refinance this loan. Needs to be done properly.

I do.

cybersimon wrote:
Hi all,

Just to give you some background to my question – My partner and I currently have two properties and are hoping to purchase another one before too long. Our current properties are both slightly negatively geared, so we would like to now find one or more positive cashflow properties to complement them.

Our current…[Read more]

Ynchai wrote:
Hi, I am hoping someone can share with me the strategy to pay off your debt in 5 years. I currently have a mortgage of $400k with yearly income of $100k. Current loan repayment is IO. Rental income is $25k/yr.

Appreciate any strategy sharing or even a comment if this is even achievable/ not. Thanks

Firstly you should consider…[Read more]

seti wrote:
Hi all,

Myself and a friend are thinking of starting a renovating for profit business and I have a few questions regarding finance, however just a few points to make sure you all know where our heads are at. We think that my friend will need to keep working while I renovate the properties, until the banks can see that the business…[Read more]

No Australian lender would be willing to lend based on overseas security. It would be a legal nightmare to lodge mortgages in a foreign jurisdiction and even worse to enforce if you stopped repayments.