You could get 3 houses out in Mt Duritt area for that.

Thanks Crusty.FMD = Farm Management DepositFound this example on google:http://www.adelaidebank.com.au/make_me_money/farm_management_deposits.htmlWho can open an FMD? Primary producers with a non-farm income of less than $65,000 per annum. Accounts must be opened in one name only (joint/company accounts are not permitted). Primary…[Read more]

Still wondering what a FMD is ? Farms of Mass Destruction?

What does the book say? Especially in regards to Land Tax and distribution of income?I would suggest you do your research before signing up for a trust.

Just be careful with and/or nominee. I agree that you should always use it, but there are stamp duty issues if the nominee doesn't exist at the time of the contract and/or if there is no written agreement in place at the time of signing. Seek legal advice.

Borrowing and placing the borrowed money into a savings account is very risky as you would break the nexus between borrowing and investing. Once it hits the savings account it is no longer borrowings.Some loans offer redraw, so you could set up a IO loan, new split of course, and borrow the money and then deposit it back into the loan. Once you…[Read more]

Shape wrote:
Yes- because it's your money to begin with… Regards Michael

Or is it?

You should get a settlement statement from the solicitor and maybe a copy of the contract you signed too.

Good work.

new2invest wrote:
@luke86 Trust is the number 1 question on my list when I visit my accountant this week.

Try to read as much as you can before hand so that it all doesn't go over your head.

or desparate

generally same as usual, but the other side will probably want a special condition requiring a personal guarantee

Without the fee the depreciation schedule would be the same too.

Do you think you may need any cash in the future. eg if you are buying a main residence or upgrading. If you pay down a loan you will be short of cash meaning you may need to borrow more non-deductible debt.

AndrewIf your wife owns the property then getting the LOC in your name would mean she has to guarantee the loan, this adds double the risk as you are both on the line. You should probably only pay the LOC back if you have paid off all personal debt first. Personal debt is not deductible whereas investment debt is. You don't seem to have any…[Read more]

ownership issues need careful consideration.Buying in your name now may help you reduce your tax by negative gearing in the short term, but what happens when the property starts making a profit? You will end up paying even more tax.You should also consider asset protection and estate planning issues.

Whose name will you get the LOC in? Probably best just in your wife's name1. Yes. Your wife could borrow the money could lend you or the trustee of your trust the money.2.  Yes.3. Probably best to use the LOC. Then set up a 100% offset account on the new IP loan and place your cash into that. If you use your cash now then it will be tied up in…[Read more]

I would suggest that it is not a good idea to have two directors of a company. There is no advantage and it doubles your risk.1. Not necessarily limited to commercial loans.2. Basically its the same as borrowing as an individual. Bank will look at your personal income.3. Having a trust will not stop you being maxed out. From my experience that…[Read more]

I think you are equating a redraw facility with an offset account. These are totally separate and different products and care needs to be taken when deciding which one to use.Assume that someone has a home and pays down the principle a fair bit.If they also have money in an offset and then decided to use that money as deposit for an investment…[Read more]

Mr DI think you should clarify a bit. What do you mean exactly?