good find wobbly  nice easy to understand examples

Another tip is to read the whole contract word for word. You would be amazed at how many people who enter an agreement without knowing what they have agreed to.Start at the special conditions and take special note of these and then read all the standard conditions clause by clause. If you want something changed then tell your solicitor and they…[Read more]

Well you will be using one anyway so why not get them to show you how to make offers with a few conditions. Should cost much more if anything.

Don't tell me you are going to buy a property without legal advice?? Spending $1000 now could save you hundreds of thousands later.

Under contract law if an offer is accepted then there is a binding contract. But for land this is qualified by legislation which states that an offer to buy or sell land has to be in written form to make it binding. Doesn't necessarily have to be in the form of a formal contract. Could be on the back on an envelopSo if you are making written…[Read more]

Thats ok as long as he doesn't catch the disease 'analysis paralysis'.I have been studying trusts for about 13 years now and am still learning.

Think it thru.The one loan was used to purchase the property as a whole. So it can be attributed to both blocks. You will need to speak to an accountant about the portions but it should be split into 2 loans. You can have both loans stand alone with no cross security used.Tax deductibility shouldn't be an issue if you intend to build and rent or sell.

KrisM wrote:
Great help Jamie, it's appreciated. Terry, thanks for your expertise on land tax. I hadn't thought of things that way. It would make a lot more sense to get a few properties under our belts and utilise the benefits as indeviduals before creating companies and the like. The little ducks are starting to line up.CheersKris

It may make…[Read more]

You will be selling new units so 1/11th of the price on them would be GST.Against this you would be able to claim any GST claimed.You may also want to look at the margin schemeNot sure if the demolition can affect thngs such as GST, it will affect CGT.

Apartments do go up in value. But when you think about it the land content in apartments is small as you have so many unit owners on the one block of land. So most of the cost is building cost and what happens to buildings as they age – they depreciate.Now also consider all the strata issues. The lack of control. One of my friends owns a strata…[Read more]

Yes, companies and trusts are extremely complex and 99% of those going into them don't understand most of the issues.Land tax is a state based tax and the laws vary will from state to state. So wether you will pay more in land tax by using a trust will depend on what state you are in and what other property you own in that state. eg. In NSW an…[Read more]

Wes,If you had $300,000 cash in the bank would you be tempted to buy something you may otherwise not have bought? Many would.

I would be inclined to go for IO with offset right now. Every dollar you pay off this loan means you need to borrow another dollar for the new PPOR down the track. And that means your tax position will be getting worse.Also the $15k separate savings account, you might as well put that in the offset.Then set up a separate LOC on this house. This…[Read more]

yes that is the beststrategy just in case..he only reason not to do this is if you are tempted by large sums of moneyt

In VIC Mooreslegal are the experts at structuring. From an accountant I would say around $2000 for a company and trust would be about right depending on which deed they use. I am not sure what the stamp duty on the establishment of the trust is down there.James from House of Wealth should be good because of his DNA. (james son of dale)

Ruslan wrote:
Hi there, I hope all is well I thank you all for the information you have provided above. However, my questions are still not answered; Firstly, why not to buy an investment property and set it up as a business separately to whatever you do? I ask this because I read in the book where advisor said that it is dangerous when…[Read more]

That sounds about right

Hi RobI really think trusts and companies should be set up by lawyers because legal advice is necessary. Tax advice is needed too and this can be handled by the lawyer or a tax accountant.For example, do you know the duties of a director under the corporations act? Do you know what happens on the death of a person behind a single…[Read more]

Well,  at least you should be able to claim all the GST on the costs associated with the development. Is the entity registered for GST?

Refinancing won't change deductibility but withdrawing money paid into a loan will. You cannot take out money you parked in redraw  and have the interest on this portion deductible even if you had good intentions and the period was short.