The units of the unit trust could later be redeemed by the trustee and the trust could convert into a discretionary trust (must have it set up properly). The trustee could borrow to buy the units back and this interest could be deductible (refinancing principle). This will free up more cash to pay down private debt. Later on the units could then…[Read more]

Hope it is not CBA as I had problems with them earlier this year when they refused to accept loan documents signed by an attorney.

Jo,

The debt would become deductible not because it is negatively geared, but because they borrowing was used to purchase an income producing asset.

Borrowing 100% plus costs would free up more money and create bigger deductions.

That may change things.The offset account will be saving you interest. So if it goes on the QLD property your husband will have less interest to claim. He is on the higher income so less deductions = less tax back. In this case it may be better to put the offset on the 50/50 property

Jean,If it is for a loan then do you even need a stamp? You should also take great care in signing it correctly as if you get it wrong they will need to redo the documents. Probably best to go into the bank and do it in front of them on their instructions.

If you are going to make a stamp then maybe "(your name) as attorney for (husband's name). signed under registered power of attorney number 1234"BTW, In NSW there is no need to register a Power of Attorney unless the attorney will deal in Land. But in QLD it may be different. You should also probably get a solciitor to certify a copy for you which…[Read more]

You could enter into a short agreement. Say 2 weeks. Then if the buyer doesn't appear you can ditch the agent. If there really is a buyer then the agent can still get his commission if the agreement expires if they include a clause along these lines – which they normally do.

HiI would not suggest a LOC for the main loan for the investment property. I think an IO loan would be the way to go. If you use a LOC people get tempted to make deposits and withdrawals and this could contaminate the loan.Maybe you could set up a LOC on the IP1 NSW and then use this to pay for some expenses.Assuming you both own 50/50 of each…[Read more]

I think finance may be your greatest problem. If it is in a flood prone area then lenders may not want to lend or was it a one off flood?The lenders may also have problems with the state of the property. Is it liveable at the moment? if not then maybe finance will be based on the land value only.Insurance is another thing you should look at.…[Read more]

You would probably just sign and write something such "as XX as attorney for ZZ"

No bankruptcy protection with a unit trust as the units are considered property under the bankruptcy act. You would have to hold the units via a discretionary trust to get any protection.But certain unit trusts could enable the land tax threshold to be obtained, but only if an individual were to hold the units.Bascially, you cannot have one…[Read more]

No thanks, but that explains it.

Only newbies go on about building/finding a 'team'. It must be something you learn at one of those expensive seminars??

I think you are supposed to claim expenses when they are incurred. ie in the tax year incurred. International tax is a complex area and it will likely cost you a fortune to get your taxes done properly. Have you got a tax agent handling this for you?

There are several aspects.If you rent out your home you will generally lose the CGT free status of it. However, there is a temporary absence exemption where it may be possible to keep it CGT free for up to 6 years.Then there is the income tax aspects. You will be making a profit from the rent if you have no interest to claim. This means the net…[Read more]

A trust is where one person (trustee) holds property for another person or people (beneficairies).With a discretionary trust the trustee controls the property and the income. He/she/it has discretion on who to give the income/assets of the trust too. So no one beneficiary has a claim on the assets of a trust.If a beneficiary where to go bankrupt…[Read more]

Hi PaulA testamentary trust won't prevent challenges to the will. The TT is part of the will and the assets left via a TT can be challenged just as other assets left directly.

Catalyst wrote:
So this is your place and you'll be moving into your partners place? is that correct? Or are you and your partner moving out and you both own it?If the first is the case you can rent out your unit for 6 years and not pay CGT (as long as you don't claim another place as your PPOR (Principal place of residence). Important if you…[Read more]

I would imagine the Dept Fair Trading would be on to this. They manage the licensing process and receive complaints etc. It would also be difficult for those sorts to get insurances. But I don't know how the systems works – they could be starting up again under someone else's license too.

hi JohanFirst thing I notice is that one of the business loans is PI. Changing this to IO will assist reduce the repayments. And IO would be more tax effective as you would want to divert money to your home loan first which is not deductible. PI on a business loan means you end up paying more tax.It is also unclear which loans are secured by which…[Read more]