Depending on what you want to do and why you could do it 2 ways. One is as a bare trustee. Other is just gift the money to them and have them by it themselves.There are heaps of issues involved such as tax, stamp duty, loans etc

Yes.

Teds, I may have misunderstood your post. So you are not unconditional, but another buyer is? So you would have less risk than i imagned, but you have an offer in there without seeking legal advice on it. If your offer is accepted you will be locked in. You should really show what you have signed to a lawyer now to see if there are any issues. If…[Read more]

compare the food of a chef to that of a franchise.

Thats a large risk. No lawyer and unconditional now!

Real estate agents are prohibited from adding clauses to contracts – in NSW they can only fill in the bits in the box on the front page. You should seek legal advice

Why not pay off the home loan sooner and buy an investment property? Not mutually exclusive.

Financial_Help wrote:
You really need to pay all the mortgage before you want the lender and Mortgage benifits. It will also effect you when you will go to ask loan…

This poster doesn't kno what they are talking about. Just writes anything to get his links loaded.Lately PI.com is full of spam. The somersolf forums are much better

You're right in that you cannot borrow from yourself. You can borrow from third parties and the loan would generally be deductible and you could refinance it with another lender. Just need to make sure you have a written loan agreement and set it up properly.Perhaps a discretionary trust would be the way to go rather than family.In the past I have…[Read more]

Theoretically you could by letting the new lender take a second mortgage.But  it will be virtually impossibe to find lenders that would allow a second mortgage on your house behind another lender.

It may be able to be done, but as trustee of your smsf you would be not acting in the best interest of your fund by putting all of its cash into the one investment. Consider carefully if this is the case.It may also be possible to join with a spouse or others to pool your super money together. Many issues here to though.

Jpcashflow wrote:
Whats the point of having a trust vs normal name?Cheers

much greater asset protection and tax flexibility which can result in substantial tax savings.

There are 2 ways to do it:1. Have a company act as trustee for a discretionary trust.2. Have a company own the property outright and a discretionary trust own the shares.This will involve the trustee as the legal owner, but the beneficial owner of the property will be the beneficiaries of the trust. With a discretionary trust no one beneficiary…[Read more]

DHCP,if you had owned the shares in the company your creditors could get those shares and therefore control and own the company which owns the shares.Companies also do not get the 50% CGT discount so they are not recommended for holding assets.What is often recommended is a company acting as trustee for a discretionary trust.

There are several reasons to buy in a personal name:1. Access to the CGT exemption for main residences2. Access to CGT exemption for an absence from your main residence3. Land tax threshold4. legal simplicity5. tax simplicity6. Your houses will form part of your will.

Several reasons not to buy in an individuals name:1. No asset protection2. No tax streaming benefits3. Difficult to bring in additional partners4. little flexibility in transferring to a related entity such as a SMSF5. Forms part of your will on death and wills can be challenged.6. overall little flexibility.

It may not be as bad as I first thought if you are never taking any money out for private use. But it can still disadvantage you. I can think of 2 ways:1. eg.Your LOC loan is $300,000 and you are putting in excess cash each week from rents, say $5,000 and your interest is $4,000.Each week your balance is dropping by $1,000. After 1 year your LOC…[Read more]

It is messy because how do you distinguish between properties. It could disadvantage you later. A LOC should only ever be used for investment expenses. ie You can borrow to pay deposits, pay rates, insurances etc. using an IO loan with offset is much better for getting incomes deposited, including wages and there would be no tax issues when you…[Read more]

I agree with Richard.Don't use your offset account money as this is personal funds and will be needed for your future PPOR. You have plenty of equity so use this to borrow 105% of the new property (without crossing loans).

I don't like your LOC method because you are paying into an investment loan and it will be messy later – like your accountant says. What if you sold one property, how much of the LOC is associated with each property?I would keep the LOC, but set up an offset account against one of the IP loans. If all IPs are owned by the same entity then it…[Read more]