Terryw wrote:
Hi Wobbly,

Can't imagine that would be the case as most trusts would have no income and those that did have income shouldn't be buying assets for asset protecton reasons.

I will ask my contact at CBA and report back.

His response:
They should take into his personal income depending on what type of trust and how the application…[Read more]

You shouldn't settle until you get vacant possesion as you will inherit any tenant problems.

Cleaning can be a problem. Do you have any special conditions about this? I had a client who sold and refused to clean and left stuff everywhere – a wardrobe full of clothes. She refused to remove them. I told her it wasn't nice to leave the house like…[Read more]

For trusts just use google and start reading. Lots to take in. Or buy the book "Trust Magic"

For your business I would suggest you quickly move over to a Pty Ltd company, either in its own right with sharehs owned by a discretionary trust or as trustee. This company should not buy property for asset protection reasons. Businesses high a very high…[Read more]

You have no real way of knowing. Ask for personal guarantees – litle help maybe.

Hi Wobbly,

Can't imagine that would be the case as most trusts would have no income and those that did have income shouldn't be buying assets for asset protecton reasons.

I will ask my contact at CBA and report back.

Terryw wrote:

jmsrachel wrote:
Say they are tenants, could you claim the interest on the loan? If only part of it can be claimed how is it calculated?

Only if renting at market rates, otherwise maybe a portion of the interest.

How is it calculated? Well if you would have to make reasonable effect to apportion the interest.

If you are…[Read more]

Of course it is not free. The only way someone would spend time with you for free is if they are making money out of you later – selling you a property for example.

jmsrachel wrote:
Say they are tenants, could you claim the interest on the loan? If only part of it can be claimed how is it calculated?

Only if renting at market rates, otherwise maybe a portion of the interest.

i have no experience recently with CBA but can't see any reason why they wouldn't do a trust.

You can't claim deductions for boarders. Boarders don't provide income but just pay for 'board' ie expenses such as power and food.

But are your people boarders or tenants? Sounds like they are not paying market rents but paying more than boarding. Therefore I would guess you couldn't claim a full deduction for costs based on floor area, but may…[Read more]

All.

futurecouple wrote:
As stated we would not be living as spouses as all paperwork, rental agreement and bills etc would be in his name solely and that I would only be “staying in one “of the bedrooms. The mortgage would be changed to a rental rate. I am aware that the best option is to rent out both properties and move into a new property either…[Read more]

Bob, what are you trying to acheive?

If a person buys a house generally the bank will want that person to be able to service the loan. They would only allow only a spouse to guarantee the loan.

With a company or trust it would be possible

Such a transaction may not give any asset protection. If you were to get me to own the property for…[Read more]

What is National Deposit Funding?

A lender that lends deposits? It could be good and may be a way to save LMI costs, but make sure you service on both this debt and the new loan.

Diamonds, gold?

Send it overseas and borrow it back?

Bob, I think you must have misinterpreted your accountant.

A SMSF has the sole purpose of providing for the retirement of its members. Members cannot benefit from the fund until retirement. This means all rents and capital gains stay in the fund until you reach the stage where you can legally take income out = meet a condition of release. You…[Read more]

you mean controlling the property but not owning?
1. Company with you as shareholder, or a trust as shareholder.
2. Discretionary trust with you as one of many beneficiaries
3. Unit trust with you as unit holder or discreionary trust as unit holder.
4. Bare trust with you as only beneficiary
5. spouse's name with you living there, paying for the…[Read more]

If she would take a property it could be transferred without triggering CGT, but she would inherit the CGT dliability.

She would get more if she took the cash.

Tax free passive income.

He has to sell CGT impregnated property to pay this, so the real cost maybe $2mil

One of my mates just settled with his wife – $1.5mil for a 15 year marriage. She had a younger lover too.