savymeens wrote:
Hi

We purchased a property today in VIC. We had done a pre -inspection before settlement and found that the electrical appliances are not working and neither the air conditioning systems has got their remotes. We have told the estate agent as well as conveyance about it and asked if the vender can fix these issues before the…[Read more]

In NSW it is definitely the "dutiable value" or the transfer amount, whichever is greater. s21 Duties Act.

If a transfer between related parties the OSR will insist on a valuation too.

You would want to set it up so your existing property will not be used as security for the new one. Avoid cross collateralising the loans.

You should probably set up a LOC type loan on the existing one up to 80% LVR.

$550,000 x 80% = $440,000. Less your exisitng loan of $330k = $110k

Use this as deposit for the investment and for all costs,…[Read more]

1. Yes it is legally possible.

But there are many many potential legal minefields to negotiate so seek legal advice.

2. Tell him you are getting $400k worth of property for free!

Often there are sunset clauses which allow either party to rescind in something, such as registration of strata plan, isn't done by a certain date. I successfully got out of a long off the plan contract in VIC many years ago because they were so slow and prices had not increased – probably dropped.

Talk to your lawyer asap.

Nice summary. A lot has changed it seems!

Number 8 is right.Captialising interest is ok, but the ATO can deny the deduction if the dominant purpose is for paying off your home loan sooner. See the recent tax ruling in 2012.

lance1 wrote:
Hi guys,

Firstly, apologies if this has been repeated before but i was hoping that someone could shed some light as all the examples i've tried to refer to aren't hitting the nail on the head. Basically, my situation is as follows:

I purchase vacant land in 2003 for 110K
Sold this plot of land in March for 210K

Basically, i'm…[Read more]

proprookie wrote:
Terry, for CGT purposes can we choose between "% of time as IP" vs cost-base before it changed to a PPOR? The tenants will be moving out in 2 weeks so in total it would have been rented out for 4 weeks (2 in the last financial year). The property will be my PPOR for at least a year (FHOG and WA grant requirements) after then…[Read more]

Rory1 wrote:
Thanks Terry, not a simple situation for me to work through!

Very complex. Most lawyers couldn’t advise. I wouldn’t advise on something like this as I don’t know enough about international tax aspects.

Rory1 wrote:
Hi all,
There is some great info here which is really helpful, but I also have some questions that I am hoping you can assist with.

My situation: I now live in Norway with my wife and our 2yo son. I have an Australian salary until at least Dec 2014, but probably Dec 2015. My current gross salary is about $78K as I am on part time…[Read more]

You may be hard pressed to justify this other than claiming a small percentage based on use.

se7en wrote:
Hi Terry,

I have always planned on seeking advice from an accountant, lawyer and broker but I have always found it hard to work out which order was best.

Because of my situation I figured accountant was best as most of my concerns revolve around taxation. This said, what worries me is that if one pays for an accountants advise…[Read more]

se7en wrote:
I plan on contacting my accountant re. setting up a trust possibly offshore to help me take full advantage of the tax free situation I find myself in now that I am working in Dubai for this I need to educate myself so I can ask the right questions.

Any advise on this, in terms of the things I need to be asking? or any clues about…[Read more]

Its more complicated.

you will have to read the deed very carefully and find out who has the power to do this and how it can be done. You should also consider that changing things could force a resettlement of the trust and this could mean CGT and Stamp duty on the whole of the assets of the trust.

Consider also what happens if you die – who…[Read more]

So why do you want to refinance?

If you own the properties are you wanting cash out? Do you have existing loans on them?

based on rent only, probably 65% LVR with a rate of around 8.14% for a commercial property

simonanderson wrote:
Thanks Terry and Richard.

Yes, I think a broker, accountant and lawyer are all key to the success of the structure and finance of the purchase.

Richard, I assume in your scenario the daughter was named as beneficiary on the trust deed? I could not imagine them asking for her to be guarantor unless she was named as…[Read more]

I have a friend who is can experienced property lawyer. he does't do litigation, or debt recovery, but be does conveyancing for around $1100 plus GST and disbursements. he does every state in Australia too. I think this is very cheap as some conveyancers charge more!