Think of it as 2 distinct interests like 2 separate properties. You will be living in your sisters property and paying market rent. You will be living in your own property at the same time so you would have no tax issues. Your sister would be able to claim her expenses if you are paying market rent and she is not living there.

When I was working for a martin place law firm I did conveyancing and we charged by the hour, $350. I ended up charging cliens $11,000, $7,000 and the cheapest was around $3.500. This is for average properties too – $500k houses etc. Clients were often professionals and even lawyers.

The lawyer is supposed to disclose their fees up front and…[Read more]

Then i agree with Jamie. Paying down the old house any more will be tying you your cash which will mean less available for the new house which means higher non deductible interest and less tax saved.

What if you don't end up moving back in and want to buy a new PPOR to live in?

If the reno was substantial then it could be deemed 'new' and GST would apply to the sale. GST on the full sale price perhaps. If subdivide then build the new house will also be new (der!) and would have GST if sold. But you may be able to claim some GST paid on materials back if the trust is registered.

With trusts the income flows through and…[Read more]

It depends…

They are possibly trading stock so not CGT would apply. Merely income tax. Just as if you were selling ice cream.
see "ATO ID 2004/25 Income Tax Trading stock: residential properties instalment sales contracts"
http://law.ato.gov.au/atolaw/view.htm?locid=%27AID/AID200425%27

Max,

I took it that you meant you met a condition of release for a lump sum payment from your super which you then used to construct.

How did you do it?

Nope, this is a legal issue. Can only be done by a lawyer.

It may be better to just consider a trust for future purchases. Also a lot more to consider other than income tax. If land is in NSW then maybe the land tax will be more than you would save in income tax each year.

Ben, if you own the land already then it is largely too late for a trust now. Transferring it would mean stamp duty.

1. Define 'best'!
This will depend on your situation, the family situation, the existing business set up, land tax, stamp duty, long term intentions and asset protection requirements. And day of the week.

2. Yes. you could borrow 105% or more for each deal. But htis will depend on existing properties. Generally you can borrow up to 90 to 95% of…[Read more]

excellent Alistair!

Perhaps a buyers agent?

Work out a strategy with an approximate area and then employ a buyers agent to source for you.

Perhaps meet them halfway. Drop the rent partially or in 60 days maybe. This may keep them happy and mean less likely to leave…

I was not aware that he went bankrupt, but thought a company he was involved in went under.

I think his books are good. especially rich dad and the cashflow quadrant. Simple easy to understand way of explaining things.

Well if you are going to sell one, your PPOR, then you may want to consider buying in a unit trust so as to be able to transfer to the SMSF. But if you do this you can't claim the main residence exemption like discussing above.

It will all depend on the circumstances, but something to seriously consider.

There is nothing wrong with that way. People just have different ways of doing things.

One point to consider is if you are going to buy an IP what about super?
1. Get one in a SMSF to it will be tax free income and capital gains once you retire, or

2. Get one in a unit trust structure now and when you do retire you can transfer the units to a…[Read more]

WHy have a PI loan at all. IO with offset may work better.

The only reason not to get an IO loan with offset like this is if you are tempted by large amounts of cash.

It is never a bad idea to pay down loans, but you never know when you may need cash for something unexpected.

Why would you use a conveyancer? Use a lawyer as it sounds like you need legal advice.

Why is no money being exchanged? What are the various legal implications of this – bankruptcy clawbacks, estate planning. eg. if you die within 3 years the transfer could be voided in some circumstances. If the transferor goes bankrupt the transaction could be…[Read more]

Transfer to a related party?

It is usually the date of the contract that counts and not the date of the transfer. If related party there may be no contract – but there could be.
You will need a valuation for stamp duty purpose if related party. Council rates valuation probably won't do as only covers land I think.

Why pay the $200k into the investment loan. Have you considered just using the offset. Once it is in the loan there are tax consequences if you need cash again.

If you sell your PPOR and buy an investment you will be losing the CGT exemption. Are you aware of the 6 year rule – could rent out PPOR for 6 years and still class it as main residence…[Read more]