Achawk wrote:
Thanks Richard

Sorry let me clarify.

Parents will purchase an investment property in their name (they can definitely service the loan themselves) myself and my partner will live in that home and pay 'rent'.

When the house sells the parents will hand over 70% of the profits for us to use as a deposit for our own house.

Basically…[Read more]

http://www.houseofwealth.com.au

Cattleya wrote:
Terry,

Interesting post there. Would be interested to know your reasons / thoughts.

I usually pay principal as well. This is because, at the end of my 25 mortgage I will be… well in my 60s or 70s (hate to give out my age.. lol).
So if by then my mortgage is not paid off, presumably no body is going to give me homeloan anymore…[Read more]

Under Australian law you cannot have a trust of which you are the trustee on only beneficiary. By definition a trust is A holding property for B. You cannot hold proeprty for yourself. THis would be the case under NZ law too I am sure.

The trust assets would be property of hte marriage and could be taken into account under a separation.

The…[Read more]

Stamp duty on the transfer of land is a capital expense so it can only be claimed against CGT on any sale of an investment prperty.

Stamp duty on a lease would be an income expense and could be claimed if the property is an investment. e.g land in ACT.

Have to be in the same names, but some lenders used to offer accounts in another name, such as a related company. Can't think of any that do now.

Were you absent from that house for more than 6 years?

Look at s 118-192 ITAA 1997 and s 118-145 too and send him the links and ask for a please explan.

Sounds like you may be able to apply the 6 year CGT exemption for absence from main residence s118-145 ITAA 1997

Treat it as 2 separate preiods, up to hte point you purchased the second residence it could be your main residence. Then it would be subject to CGT from that point on.

Munz wrote:
Thanks Terryw. Does that mean the exemption only applies if I add my spouse and not fully transfer to him?

Yes for NSW. And I think there has to be no consideration – which would not help the tax position.

I beleive a member or a related party can lend to a SMSF. But the SMSF cannot give security. A SMSF cannot borrow to acquire an asset either, unless a single acquireable asset and security trustee in place etc.

NSW has an exemption from stamp duty when transferring from 1 spouse to both spouse – ie adding a spouse to title. But this only applies if main residence and you intend to keep it as the main residence.

I am not sure what title insurance covers, possibly relates mainly to fraud where someone who doesn't own the property is trying to sell the property.

A caveat registers your interest in the property, and this registration may give you some priority over later interests which are registered after you and before settlement.

Do a goolge on 'black…[Read more]

Jean,

No, I don't think there is any legislation requiring this. It is just the banks being overly cautious and trying to cover themselves if things go wrong and then the guarantor starts saying "I didn't know I was a guarantor…."

There are many cases, often involving sons with immigrant parents with English as a second language, where the…[Read more]

If the property is in Victoria you may be in luck as 1 spouse can sell to another spouse without stamp duty.

And a caveat is not a mortgage and offers no security. A caveat is just a notice that someone has an interest in this property and it prevents further dealings such as mortgaging or transferring title.

Benny,

No flexibility. What if you used a discretionary trust with a company trustee. You could then distbute income to lower income beneficiaries and still have the benefit of distributing to a company if you wish. You get flexibility.

It will still be difficult even if the purchaser has 5% genuine savings.

Are you contemplating taking a 2nd mortgage to secure your money? This could make it harder.

It would be very difficult for the buyer to get finance if they were relying on that 20%. I don't know any lenders that would allow this.

Copy and paste of my answer from the other forum

hmmm

1. 1 share – what if you want to bring in someone else later on? I wouldn't worry about losing $10 or $100.

I would be more worried about losing the assets of the trust. If the trustee is sued the assets of the trust are at risk, if these are not enough then the assets of the trustee will be…[Read more]

Sounds like a main residence to me.