Ideally, it would be good to get one block in your dad's name for the CGT exemption (assuming no other property owned). But being retired it will be difficult for him to qualify for a loan. There will also be stamp duty to transfer and CGT implications for you.
The best time to reduce the stamp duty would be to transfer when the value is lowest -…[Read more]

Hi Guys,

Thanks for the recommendation, but I can't take on anymore legal clients for a few weeks. I've sent you an email Nigel.

1. I wouldn't use the redraw monies as that will create a mixed loan which will lead to loss in tax deductions in the future.
2. not enough info to answer
3. own names probably best – also consider just your name or just her name.
4. not necessary, but stronger asset protection in case the trustee is sued, eg by a tenant. If unit trust is used…[Read more]

If the owners give permission in NSW – whcih they would if you have a sign up on entry for example.

Sarema,

It doesn't matter that your loan is closed even if it was still open with redraw available the interest on the withdrawn money wouldn't be deductible if it is used for private purposes.

If your property is in VIC one spouse can buy out the other spouse at full market value without stamp duty. It will probably be CGT free if it was a main…[Read more]

ClaireR wrote:
Quick note if you do buy a PPOR (although note the best option by the sounds of it) you have to live in the place for 12 months – 6 months for the first home buyers grant yes but if you leave before the 12 months you have to pay back the government the stamp duty concession pro rata. Learnt the hard way over a year ago and our…[Read more]

RoyceRolls wrote:
Thanks ClaireR,

I asked my broker multiple times to confirm it was only 6 months I had to live in the house to get FHBG and he assured me it was. 

Thats good to know

Brokers cannot give legal advice!

Tenants would still be able to sue the owners of the property = the trustee of the trust.

No, the trust shouldn’t invest. It would just be a lender to you.

Not necessary to set up a trust, but it may be worthwhile depending on your situation.

RoyceRolls wrote:

You are suggesting I buy in my name but loan my deposit from a trust I create? Then allow the trust to buy the property off me after my 6 months is up?

Sorry Terryw, I am new to all of this and am sure ill come across as stupid.  I just want to get my strategy right from the start rather then make mistakes early that will…[Read more]

nyc88 wrote:
Sorry for my ignorance, but when you say, 'Gift the money to a discretionary trust', how much do you suggest I gift to a discretionary trust? 20-30% of the purchase price of the home?  And then borrow 70-80% from the bank, is that how it works? 

Thank you

I would suggest you look at gifting the whole of your cash to a trust…[Read more]

RoyceRolls wrote:
I agree that $50 for the week I am home is not much at all, I have tried to pay more but he dosnt want a bar of it.  He is just happy I am home after 5 years in the Army. 

Thanks TerryW. I have been reading up on trusts and definitely think that's the way to go. I have a few questions hopefully you can help me with.

1, Is the…[Read more]

There is generally no harm in paying down debt. You will get a guaranteed 6% or so return.

Another consideration is borrowing ability – if you pay it down now will you qualify for new loans in the future?

If all properties are owned by the same person(s) then it generally has not effect, taxwise, on which you pay down. But from a lending POV you…[Read more]

Any chance you would need to upgrade the current PPOR or need large amounts of cash?

I would generally perfer to keep them IO with an offset account for the extra – but only if you are discriplined.

Mate, that is the oldest tax document I have ever seen. Look at the date on it – 1964.
Since then decimal currency has come into play, CGT introduced and a whole new tax act enacted.

some guy with the same name asked exactly the same question here
https://www.propertyinvesting.com/forums/help-needed/4347359

maybe you two should catch up?

You must declare all loans. So it if is in your name or your guarantee the loan then yes it will affect borrowing capacity.

But you may also be able to claim the income from the property, depending on a few things.

More complex than usual, but doable still.

It is generally difficult to get an investment property loan in Japan. How will you go…[Read more]

JacM wrote:
Good Lord Terry, that's got to be post of the year.  That is smash it out of the ballpark advice if ever I saw it.  Royce you'd sail an awful lot further with Terry on your team than you could by yourself.  If I were you I'd be dialling his number as fast as possible.

Jac, most people don’t grasp its significance.

I met with one…[Read more]

Sometimes, though rarely, residential could qualify – the definition of what is allowable is 'business real property', not commercial. Not sure if this could meet that definition though.