Get a LOC on the main residence and use that to pay for deposit for the IP. Keep stand alone. All IO loans. Offset on main residence loan.

Consider names on title for the new one.

Of course there would be restrictions.  THe land would be worth much more than $1 and this is being done to help the town economically.

Probably such as:
1. Must build on it within x months
2. must be owner occupied.

Scott No Mates wrote:
Is it still possible to withdraw all of your super if you are relocating overseas with no intention to work in Australian. again?

Not anymore

The definitive answer is found in s 8-1 ITAA 1997.

(1)  You can deduct from your assessable income any loss or outgoing to the extent that:

                     (a)  it is incurred in gaining or producing your assessable income;
……

No, not possible unless you meet a condition of release. used to be possible but not anymore.

prospector wrote:
No, i wish now i hadnt gone through a broker,

You surely mean "I wish now I hadn't gone through that broker.

Just because most are clueless doesn't mean all are. (from what I see at training sessions etc most are clueless)

NSW has 5 days cooling off period too – although this can be waived. If the purchaser pulls out during the cooling off they forfeit 0.25% of the purchase price under the standard contract.

You can create new trusts but this won't help with servicing if the same people are giving guarantees.

There are no books on this sort of thing. For structuring in general see The Trust Structure Guide 2012.

Be very careful about redrawing money. Get some tax advice first, but generally you could use the money as deposits on the next property – $8000 is no enough at this stage though.

And don't be tempted to increase this by paying the loan down, it would be more effective to borrow the equity.

Yes you certainly can have 2 trustees and both can provide personal guarantees.

But think forward – do you intend to buy more property inside and outside the trust? This may actually hurt serviceability depending on your situation.

That book is not correct on this topic.

And, I think you understanding of what was in the book is not correct either. He was not talking about multiple directors, but multiple trusts.

Income of a guarantor will be used to assess the borrowing capacity. This includes all loans the guarantor has in their personal capacity and as guarantor. So…[Read more]

Shape wrote:

Terryw wrote:

But, a trust set up under a will or post death in some circumstances will have its income classed as exempted trust income and a child can pay tax at adult rates. This means roughly $20,000 pa fax free per child. So make sure you consider a discretionary trust in your will.

Interesting…So say im the solo…[Read more]

Different states have different rules and they are not very clear. It could be possible in some instances but best method is to avoid the risk of double stamp duy and contract in the relevant entity from the start.

JacM wrote:
I am guessing if you had put the words "and/or nominee" beside your name, you'd not be in this predicament now.

Possibly this wouldn't have changed anything.

What you have signed could be a contract – whether labelled contract or no.

Seek legal advice asap as you may have a few grounds to termination such as cooling off period and other.

This is why you should use a lawyer not a settlement agent.

I think you would be up for double stamp duty in any case as you entered into the contract in your own name.

I take it your land is in WA? The OSR are very strict over there I hear.

Into_property wrote:
Hi Terry, Any suggestions as the safest way to setup this type of transaction?

Safest way would be to pay market value and transfer title.

yes and yes but you will still be partially hit with CGT.

Based on what you have said about it would probably not be worth doing for a few reasons:
1. Stamp duty on the onsale to the trust
2. Less asset protection because you are transferring
3. Your top tax rate is 32.5% whereas  a company would be 30%
4. Good idea not to have the trustee as a beneficiary for stamp duty reasons, in NSW at least.
5. When…[Read more]

Terms of the trust deed can only be done by a lawyer. These will depend on your siutation and what you are trying to achieve.