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.

Brad,

If the properties are in your name at the moment then there would be no units to transfer – I am referring here to units in a unit trust, not apartments.

Oh no the miser account with that miserable bank!

If CGT applies, this would be calculated at market value. You will need a valuation for stamp duty purposes.

Consider possible effects on social security paynents if applicable.

I would generally recommend a fixed unit trust set up. This offers maximum flexibility which is not available to discreitonary trusts. This includes
1. Ability to transfer ownership to a SMSF without stamp duty (stamp duty in some states) and extract money out of super
2. Ability to sell units without changing title or stamp duty (some states)
3.…[Read more]

You can’t count it as your main residence until you have lived in it, usually. There is no time limit in the legislation, as long as you establish it as a your main residence and later move out it could continue to be counted as your main residence – in some instances.

But, if you build or repair a property you may be able to move in later yet…[Read more]

If you had actually lived in it first it could be exempt, depending on the circumstances. There is no need to live in it again before selling.

In NSW you have up to 3 months to pay stamp duty. But if you are borrowing then the lender won't settle until you have paid.

I agree with Anthony. And also add that using a company will not increase your borrowing capacity. In fact it could hinder it.

Try http://www.houseofwealth.com.au

gmh454 wrote:
I'm an accountant, one of my favourite stories is from a colleague.

back in the early part of last decade when everyone was buying, and property was going to double every 7 years, one of his clients, bit the bullet and bought up big. (never asked the accountant first, but that is pretty usual).

At the end of the year he had…[Read more]

Yes. all those scenarios would be possible.

Yes, you may not have to charge GST on a new build in some circumstances.

The ATO has a tool you can use to determine.

Make sure you get legal advice if you haven't already.
Then insure asap – building only needed at this stage, but might as well consider a combo policy
Consider tax issues with the payment of the deposit too, if not too late
Get finance sorted
building and pest inspections etc

Jason957 wrote:
So what are the tax implications with renovating over and over ? (Ie Capital Gains) How much is it ?

And do you have no tax implications at all when having it as a PPOR ?

Thanks

Jason

It would likely be just income tax, ie no 50% CGT exemption.

Yes. Prob calculated on the land area used by the tenant.

Also look into land tax. If in NSW you would lose the land tax exemption as well – but may still come under the threshold.

Also consider the risks associated with this, and check up on your insurance.

I don’t know your situation, so can only comment in general.

1. I would suggest you look at a unit trust with a company trustee. Units owned by a discretionary trust.
This will give 4 additional benefits, transfer control and low or no stamp duty, refinancing principal, transfer to SMSF later etc

2. Not a good idea generally to use a company to…[Read more]

Depending on the structure of the ‘gift’ it could be clawed back indefinitely. There are also arguments which could be run by creditors that it wasn’t a gift but a loan etc.

Trustee will be the ones entering contracts so you have to think about future potential issues too. Subsequent purchases, loan agreements, agreements with builders etc. THen…[Read more]

No, there will be little asset protection in the early years especially. But gifting would be safer than loaning. How you structure the gift is important.
Asset protection will also depend on the structure of the trust and how it was all set up.I

 would suggest you gift to a separate trust Band have that trust lend to the purching trust Aand then…[Read more]