What do you mean by "second is hybrid 1/4 ppor and 3/4 ip (farm with house) $360000 loan"Is it a mixed purpose loan or a large farm with 1/4 used for your home?

I was on a mobile device when i wrote the above, so let me elaborate why you should not use a company:1. No 50% CGT discounts for companies2. Income of a company does not retain its character. Capital gains will be passed on as dividends to shareholders – which may not help a shareholder who has a capital loss from another investment for example.A…[Read more]

Its a good idea to try to educate yourself, but there is only so much you can do yourself. I have been like that and have completed course in law (including masters), taxation, mortgage broking and am now doing financial planning including super. But I am still learning new stuff everyday.I think you have to know the basics and then use…[Read more]

1.  yes2. yes, if you rent it as furnishe3. could possibly be CGT depending on circumstances4. yes. which state/city are you in?

Rather than A pty ltd company a unit trust would be much better

Yes. But just make sure the bank won’t class it as a missed repayment and default

Dloy wrote:
Hi Sundance, It would definitely be better to pay down the loan as quickly as possible so putting the money straight back into the mortgage is highly recommended. Along with any other spare cash you have. (Paying an extra $100 a week into a 30year mortgage on a $360k property will save 10years and $200k worth of interest!) Have…[Read more]

Often those socalled specialises aint really specialists but just sales people who get kickbacks from referring to others.One of my friends signed up with an expensive accountant with inhouse fin planners an borkers where they all work together etc etc. But in reality it is a just an average accountant who refers loans to his local bank an who…[Read more]

Stay clear of brokers selling properties off the plan!

Damage not so bad – you have just tied up $20k thats all. If you have no cash and need $20k, for example, you would have to borrow it and then the interest on that would be 7% pa or whatever your loan rate is = so about $1400 pa in interest. So essentially, if you were to buy a place to live in you would have $1400 pa less in tax deductions each year.

hang on – you cannot just redraw money. If you do that you will end up with a mxied purpose loan.

I would recomend IO loans with no extra repayments but putting all cash into an offset account.

Never pay down investment debt while you do not have a main residence – otherwise you would have to borrow more to buy one = bigger non deductible debt.

yes it is dangerous for the average client out there. most would be none the wiser

he he  good one Richard

The stamp duty on each transfer would have to be at market rates ie on market value. Also. Cgt or income tax would be at market value.

In Nsw you. An generally only get owner builder license once every 5 years. However if you were a builder then no need for the license as you would have a builders licence

This is an australian investing site.Same or very similar principles would apply though

Is this in Australia?Sounds like you mean:1. Create a company as trustee and legal owner of the property, and2. the company will act as trustee for 3 separate trusts. 1 for each family.I would not recommend this because. Setting up a company is cheap so you might was well have a separate company for each trust.You need to worry about control of…[Read more]

The most important thing is the trust too – this may have to be in existance before signing contracts.Changing company name can be done cheaper by going direct to ASIC but this needs to be done quick and before settlement as it would be a hassle to change the name on the title of the land and the mortgage etc after settlement.

Before you go any further you should get some good legal advice as there could be asset protection and tax strategies you could utilise.

If unsure ask the clause to be amended to ‘fully aproved’