as a lawyer specialising on trusts I wish I could charge this much for advice on trusts.

This strategy works with companies – the company could be acting as a trustee or be acting in its personal capacity. i.e. a trust is optional – and in fact should be avoided in many cases due to the land tax laws.

This doesn’t sound good to me. I think you should get some alternative tax advice – might be too late to fix things though.

At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

You could also consider investing in a different entity, a more tax effective one,…[Read more]

This doesn’t sound good to me. I think you should get some alternative tax advice – might be too late to fix things though.

At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

You could also consider investing in a different entity, a more tax effective one,…[Read more]

The answer will depend on the ownership structure for the existing properties as well as the business and the new investment. Plus your expectation on returns..

The answer will depend on the ownership structure for the existing properties as well as the business and the new investment. Plus your expectation on returns..

If the trustee is going to borrow money it might as well open an account at the same bank it gets its loan from – ideally an offset account.

You cannot take out equity, all you can do is borrow money. You can do this by using the property as security for a loan and borrow the deposit and stamp duty etc for the new property. But the interest will not be deductible because the deductibility is determined by the use of the borrowed money – which isn’t income producing in this case.

They are statements not questions

but

1. No that is not correct

2. No that is not correct – loans have no bearing on CGT

It is generally the contract dates – but not always.

It is possible, but something you should seek specific legal advice on.

Yes, it could be either

a) cost base reset to the value at date first income producing

or

b) above plus using the 6 year rule and apportioning.

seek tax advice

It will depend on the circumstances, such as, if PI or IO, what the expenses are, how long left on the loan, type of property, type of tenancy, yield etc

Assuming PI residential rate with minimum expenses it would probably neither improve nor decrease serviceability

Didn’t a lot of investors recently lose large amounts of money by investing in companies related to this group?

Steve, you have confused terms here or conflated ‘borrowers’ with ‘mortgagors’.

Mortgagor is the one who gives a mortgage

Borrower is the one who borrows the money

usually but not always they are the same

e.g husband owns the property and husband and wife go on the loan. Husband is the mortgagor and both are the borrowers.

You cannot be a…[Read more]

Why would a ‘bank’ be interested in reading a link to an article?

What are you trying to show them? And Why?

That can work out well in limited circumstances, but in these days of low interest rates the trust would soon make a profit on the property that it rents to you and that income would be taxable income where it otherwise wouldn’t had you bought in your own names. Also have to factor in land tax on trusts if buying in NSW and VIC, plus the estate…[Read more]

Yes, a potential conflict of interest. What if something pops up with the property and it is something the buyer’s agent should have picked up or that they caused will the settlement agent tell you or down play it?

You should use a lawyer, a solicitor, to protect yourself and to get some legal advice as well as transferring title.

beware as accountants cannot advise on land tax as it is state law and doing so would be providing legal advice for which they would not be covered by insurance. This is the case also when they set up trusts.

In WA a trustee of a discretionary trust could get a separate land tax threshold to land they hold beneficially (not as trustee).

That will depend on the circumstances such as where the land is located and alternatives. There could be less land tax with using a trust to hold property, the same or more.