No appointor is a serious issue. You will have to read the trust deed and see if the trustee has the power to amend the deed to be able to add an appointor (probably will). Make sure you have back up appointors on all your trusts too. What happens if the appointor dies. This is important because it could be the executor of your will if you do not…[Read more]

As long as the borrowed money was used for an income producing asset then you should be fine – (assuming it was directly used).The property wasn't income producing then but may be now so the interest would be deductiblle – probably

If you are buying properties to demolish you need to be buying at almost land value only. – probably. Demolishing a house can cost up to $30k plus when you remove the house the big drop in value.

And for a solicitor, google "Bob Balanda" he is on the gold coast somewhere I think. I think he had written some articles on getting out of a contract too.

jaiterry wrote:
  I spoke with another accountant last week who backed up what the other guy told me – that I don't really need to worry especially about the older redraws because it is my PPOR and the tax office is unlikely to be concerned. He has told me to put the 55K so that it isn't in question and I should be OK. Interesting…

This is…[Read more]

The trustee will be sued and the trustee personally liable. If you are trustee you and your assets are at risk.Substituting trustees now won't help because the old trustee entered the contract.Whether they can come after other trusts the answer is yes they can, but it will depend on how it was all set up and transacted. If you go bankruptcy then…[Read more]

You can never have too much equity!!If you have a house fully paid off then you are in a really good position. If you have an average income then you should be able to go far.Slow but sure. Make sure you set up your strategy and structure yourself to maximise benefits.

And it may not be acceptable to the other 2 as the director is the one that controls the company. But worth considering.

KeyStrategies wrote:

Terryw wrote:
Trusts can be set up and run pretty cheaply, but they are complex and usually cost money in getting tax and legal advice down the track.There would also be stamp duty on transfers to the trust. It is probably not worth doing for equity of $100k.If the main residence is in VIC then you may want to look at one…[Read more]

You can change settlement dates if they agree. If the contract is conditional then you may not be in so much strife. Best to work out a new settlement date before it goes unconditonal as you will have more leverage over them.

You are in a very dangerous situation. If you do not settle on time you could be served with a notice to settle and then you will have just 14 days (usually) to settle or you could lose your 10% deposit and be sued.The vendor may be ready to settle on their new property on the day you settle on theirs. You not settling could have a domino…[Read more]

This will depend on  a lot of factors.Probably a fixed unit trust with a company as trustee. There should be only 1 director – why have more than 1 when not needed, it just creates extra risk.Each person can have their nits held by a discretionary trust if they choose.You must consider a whole load of things before setting this up though. The…[Read more]

You should have used a solicitor who could have added the extra conditions. Its too late now if you have signed contracts.At least go and see the property and do the final inspection. Take details notes and photos. Check to see if appliances (the ones you will own) work.

You should have special conditions in the contract and then do a final inspection before settlement.

You are lucky – in QLD there is no stamp duty on the trust formation. in NSW it is $500.

If you already own the land then you won't be paying GST. But when selling new property you would have to charge the purchaser GST if you sell within 5 years. There may be ways around this.You should seek the advice of a tax person.A development company may need to be a registered builder too. You should look into the licencing requirements.

Trusts can be set up and run pretty cheaply, but they are complex and usually cost money in getting tax and legal advice down the track.There would also be stamp duty on transfers to the trust. It is probably not worth doing for equity of $100k.If the main residence is in VIC then you may want to look at one spouse buying out the other as this…[Read more]

Invest is myanmar real estate! Watch it take off.

Hi JoeJust worried that you will be missing something if you do it yourself. The contracts for NSW and other states are standard. But that doesn't mean nothing needs to be added to them. Special conditions are in each contract that I have seen. So if you do it yourself how are you going to draft these special conditions? How are you going to know…[Read more]

Anand – how long have you been a broker?