I would think the value of the building and land would be based on just that – the land value and then a figure for teh building based on the bricks and mortor excluding the business and fittings.

Valuation of the business would including fittings and good will.

cs_rlewis wrote:
I called up the bank whom my loan was with and they said I needed to pay off my loans if I decide to sell my property basically because that was the security that the loans used. 

True from the bank’s point of view, but depending on your situation you may be able to keep investment loans alive (and deductible) by refinancing…[Read more]

Sure, they would allow you, but would it be deductible? No.

I would be willing to do this in exchange for an upfront brokerage fee. However the administrative burden of transferring the trail each month to the client's account would be high, so my upfront fee would need to be higher.

I think it you should take an approach where you consider some of the many aspects:

1. Asset protection
 a. From potential creditors
 b. Family law type issues
 c. Losing control of the trust
2. Taxation of income
3. Taxation of CG
4. Stamp duty
5. Land tax
6. Lending issues
7. Succession issues

Factor in the costs for legal advice, loans, tax…[Read more]

Wouldn't it make much sense if all the stamp duty and land tax laws across australia were unified. It wastes so much time having to consider the different laws in each state like this!

mola wrote:
Yes my loan has been approved and it is all because of Jamie Moore who was nothing short of amazing.
He was able to negotiate an extension on my cooling off period and had the loan approved in record time, unconditionally approved after the first broker from Aussie got the application knocked back, while all along managing to…[Read more]

nicki_ wrote:

Terryw wrote:

nicki_ wrote:

Terryw wrote:
I know nothing of your situation so can't answer.

I think thats been the point of all the information in my OP.

Limited information.

Well I wouldn't call it nothing.

Thanks for your limited input.

Can't say it was useful. Wasn't asking for much, just to come to a property…[Read more]

nicki_ wrote:

Terryw wrote:
I know nothing of your situation so can't answer.

I think thats been the point of all the information in my OP.

Limited information.

nicki_ wrote:
I don't plan on staying there long term but I do plan on keeping it long term as an investment. So based on that would you think the trust is the way to go?

I know nothing of your situation so can’t answer.

If you are only going to be there short term you may still be able to take advantage of your main residence absence…[Read more]

If property 2 is owned by a trustee then you won’t get the CGT main residence exemption which you otherwise could. This is potentially a lot to give up.

Not sure of the land tax situation in SA – but you could have land tax issues in the future too.

Did you meet the lawyer or speak to that set up the trust? It would probably be valid, but is it effective? What about the asset protection issues with default beneficiaries? You may be approaching the stage of having a properietary interest in the trust the way it is structured.

That ruling is from 1985. There has been a whole new tax act…[Read more]

So it seems tax is your main concern.

Accountants can only give tax advice. Assignement of a contract or recission etc is legal advice and you need to talk to a lawyer – not a conveyancer.

I don't know if your trust is valid. The internal structure of the trust is important. There could be some asset protection issues with the way you have set…[Read more]

Couple of points:

– Why are you considering the trust for this property? i.e what are you trying to achieve?

– You seem to be getting advice from a conveyancer on the assignment to the trust – what are the legal implications of this? You have signed in your name and are supplying the deposit….
– How is your trust structured?
– What are the…[Read more]

cs_rlewis wrote:
hi everyone,
A few months back i accessed the equity in my investment property (about 52K) to fund another property i was purchasing. Suppose i was to sell this property (the property i used to access the equity), are any capital gains i make on the property free to me to use however i want? Or do i have to pay off my equity…[Read more]

Keep detailed ;omg term records of every thing as you won't be able to claim the main residence CGT exemption in full, ever.

Smoke and mirrors!

What is her definition of a vestey trust?

Hi Plummer,

This is a good point. Years ago I used to do my own rate returns and work it all out for myself and then give it over to the tax agent for processing. He always found things I have missed and this usually was enough to pay for the return. Doing it myself and reading the tax packs was the best way of learning.

Lawyers make more money than the original cost would have been by fixing up DIY mistakes! I guess accounts too. Amending 2 to 4 years of tax returns for example.

Unless the buyer is handing over the payment price at settlement the seller will not have the cash needed to buy the new one (unless from other sources). Same with you selling on installment contract.