propertymistro wrote:
I have a home loan with a 5.2% variable rate and offset account.  Basically, I am wondering is it necessary to have the offset account home loan for taxation purposes (as I claim tax deductions for the properties home loan interest expenses).  I have heard it is is complex to not have an offset account as when you take…[Read more]

fredo_4305 wrote:
HI All,
              I will be more than likely buying out the other half of a property I own with my partner. 

It is currently under finance and has LMI. I know I will have to pay more stamp duty but will I have to pay LMI again?

I have also been making all the repayments myself which are trackable. Will this put me in good…[Read more]

peo wrote:
Thanks guys.

Terry I had a look at the section you pointed me to, covered lots of areas simaler to mine, but  more from an angle of making a PPOR an IP.
I will keep on digging.

If anyone out there does have a dedinative answer or has been through this scenario I would live to hear the result.

Cheers

In that case it might be s118-190

s 118-192 ITAA 1997 from memory

Seek legal and credit advice.

My be little point in putting your wife on the loan as she would reducce serviceability but you would be doubly at risk if things go wrong. Of course there are other reasons to consider too.

Land tax is an additional problem to consider – possible concessions in vic, but not NSW. Stamp duty would be the same whether trust or individual.

Loss of the land tax exemption and the CGT exemption are the major reasons to avoid using a DT. However it may be worthwhile for some people. I have many specialist medical clients, lawyer clients yet…[Read more]

Ynchai wrote:
Thank you so much for your replies. Really helpful.

@TerryW, i just read the tax case you referred to, it sounds like the interest on creating capital is not tax deductible, and construction could ve argue as capital creation even with intention to rent out the property so based on this case, it wont be tax deductible during…[Read more]

Depends on the circumstances, but generally you would if it is your intention to rent the property out once it is complete, the precedent case is "Steele"

PCF Investor wrote:
Hi Guys,

Just like the subject states. What happens if I used the equity of house A to buy house B and then wanted to sell house A? Is there a more effective way of structuring the loan to have a better outcome? 

Cheers

Depends how you have structured it.

If cross collateralised, the one loan will be secured by 2…[Read more]

Mgs4 wrote:
Normally do mortgage brokers  have websites or PDF docs with loan comparisons on key metrics eg interest rates, annual fees, maximum LVR etc. As loans are relatively commoditized products the main variables are total costs (ir, fees etc.) and ease of application (LVR and other relevant constraints). The tricky thing I find is brokers…[Read more]

Why should I do it?
How do I do it?
Where do I go to do it?
How long does it take to set up?
If I settle on a property one week from now and I need to change the sale of contract and loan from being in my own name to a trust, can it be done in a week?

1. A trust is a legal arrangement where A holds property for B. You may do this to benefit your…[Read more]

Of course you need to state your name when entering a contract – otherwise who would the contract be with? If you don't want to put your name you could speak to a lawyer about using a nominee or a bare trustee to sign contract – beware of stamp duty implications.

No strict need for an address but this is common as you need to be indentifable -…[Read more]

You may live in SA, but where are the investment properties? If in Vic you could transfer without stamp duty.

darkness72 wrote:
Thanks for the advice,

Goes to show – speaking to the ATO over the ph – they're not always right, would want it in writing

Good news – The bank has come through with a deposit loan – so no mixing – woohoo

ATO phone people are rarely correct!

I don't rebate any commissions, in fact I actually charge people who ask me to rebate. They are not the sort of clients that I want, so I am happy if they leave and happy if they stay (and pay a fee!)

However I do offer many clients extras with discounts or without charge. Good clients often get offered free legal advice or testamentary trust set…[Read more]

You can do it all yourself – just like dental surgery or cornia transplants. But it may not be a good idea as you don't know what your don't know.

I had a client come in and see me about something and in passing he told me he was buying his wife's share of an investment property. However the way he structured it none of the interest on teh loan…[Read more]

wilko1 wrote:
Does anyone know If you own a property outright in your Superfund. (Ie you had a previous non recourse loan that has now paid off)
Can you take finance out against that property up to 80% again (Ie a new non recourse loan)

No you cannot. Borrowing can only be done to acquire an asset.

TPI wrote:
This is a unit trust arrangement that I think most people should stay clear of.

There are some benefits, but for most people it's overkill.

It was also promoted under a "hybrid discretionary trust" structure and a "Property Investors Trust".

I think everyone should beware of statements such as this. It is not correct to say…[Read more]

Tate wrote:

Terryw wrote:
CGT is a commonwealth tax so no matter where it is there would be tax payable. Stamp duty is state based, in NSW you would pay 0.6% stamp duty on the transfer of the shares which would be much less than transferring title to the property. Also stamp on shares in private companies are supposed to be abolished at some…[Read more]

Tate wrote:
Hi terry,

Thanks for your reply.

Regarding:

Terryw wrote:
Disposal of shares by a trust would result in CGT and stamp duty in some states. As the discretionary trust must vest then this will result in the CGT down the track too.

I am in NSW. I'm not sure if CGT and stamp duty applies.

However, if I understand the situation…[Read more]