Thanks Paul.

And mcho, you would be able to do with your property as you see fit. However if you were wanting to show prospective buyyers through before settlement then you would need a special condition in the contract.

I read that the other day. It seems to be a technique which aims to control spending by giving the borrower a fixed amount to live on each year.

My concern is taxation. If this house ever became an investment it would be a disaster.

Thanks for that Paul. I see that one looks at the situation regarding an investor who does a joint venture with a property manager to sell the property on installment contracts. Do you know of any other ruling where the owner just sellings on their own without a JV involved?

Just thinking the ATO may regard someone doing it on their own as being…[Read more]

sambarry wrote:
Thanks guys! My next question is.: Let's say the spreadsheet say's that the property is going to cost me about $80 per week. Would tax benefits cover this to make it neutrally geared? Do people rely on tax for an IP to be positive or neutrally geared?

Happy Easter to all,

Sam

This would depend on the income of the owner of…[Read more]

Danlawler wrote:
Hi well done on saving such a large amount so early in your life.

Like most of the advice I would caution anyone about using online services to set up any sort of structure themselves (trust, company etc) unless they are a trained accountant or really understand what they are doing. If you set it up in-correctly any mistakes…[Read more]

The investor will have to settle based on lower of purchase price or value and then wait for a while before applying for an increase.

not_so_lucky wrote:
Thank you Terry

Unfortunately, there is no other choice but to transfer the property, for various reasons.

Are you able to tell me more about the transfer being voided, or where I can read more about this, and if it will apply to us?

It will apply to you, but the laws are different depending on why and how you are…[Read more]

Why not use a broker?

It is not just about rate, but structuring the loans that is important and a good broker should be able to assist with this. If you go straight to the lender they are more likely to stitch you up.

It can be possible to get the valuation done before hand. But the lender will only lend based on valuation or purchaser price whichever is lower.

This should be possible Freckle.

Havea read of the contract. You might be able to terminate and keep their deposit, and then resell at a higher amount. Did you get the full 10%?

alfrescodining wrote:
Terry, where does negligence come into it?  Isn't it ok to rely on the fact that the builder is the one who has the insurance, not the developer?

I don’t know if you could rely on that. I was thinking more along the lines of the individual being sued for something outside the development. If not structured well creditors…[Read more]

scotts wrote:
Terryw, is there not some rule about moving back into a property and making it your PPR again before selling?

Yes, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html
but only if sell one within 6 months of buying the other.

For general situations you cannot avoid CGT on both – perhaps you could if no growth!

You need tax advice on how to minimise any CGT.

Hi Kenny,

It will come down to your negotiation skills and then the solicitor rules and regulations. Have a look at the solicitor rules VIC and Legal professional act vic.

You need to consider the following (non exhaustive) list

asset protection for negligence and contract
asset protection for incapacity and death
Succession plan
land tax
stamp duty
income/CGT tax
GST
Loan structures
Serviceability
personal guarantees
social security issues
future plansfamily
situation
etc

You can challenge it, but you received it near the start and let the lawyers proceed with their work. Did you sign a costs agreement? Even if you didn’t you implied you agreed to it by continuing to instruct. But this doesn’t mean you cannot ask them to reduce fees or you could challange it

Mad.Max wrote:
Yes Terry, I am eligible (post 55) to withdraw all or parts of my super, if I do not intent to work. (Have spoken with super, have the form in front of me.)
The land is paid for. The money I withdraw from super will provide the required cashflow to build; then sell the existing house and move into the new one.

Sounds good Max.…[Read more]

You really need legal advice when setting up complex structures. I spoke to one guy who set his trust up online. Not only was he unable to claim any interest it would have cost more than $5k to fix plus possibly stamp duty again.

No sense in setting up a trust if there is little to no asset protection planning in there. You can also do some…[Read more]

Is your sister going to live in it? She may have to pay CGT.