Sounds good TroyWhat sort of rates does that lender offer and how long are the loan terms?

How far along have you got with the purchase of the farm? (my dream too!) think you should get some advice on structure. It may be best to use a discretionary trust to hold the farm. Or a unit/discretionary combo. The main residence CGT exemption is limited to just under 5 acres so this is not much of an issue. Land tax exemptions could apply to…[Read more]

The offset account on the main residence is the way to go. The reason has nothing to do with CGT (loans don't affect capital gains or CGT) but to do with deductibility of interest. You would want to reduce the amount of non-deductible interest payable before any deductible.

How is the business loan set up? What is the security? whose name is it in?I think her only way out is to negoitate with the landlord to remove her from the lease. But this won't be easy. The landlord is unlikely to allow it easily.She is in a binding contract so has to see it through.Or, possibly the lease may not be binding if it was not set up…[Read more]

I helped someone move a few months ago and it is a pain. Wouldn't want to do it twice in a few months, thats for sure.

No CGT on the transfer of your main residence (usually). But stamp duty will apply.CGT will apply on the sale of your unit.

In that case all names will be on title so any change in ownership would mean change in title – such as bank accounts, leases, contracts etc. It probably won't be easy to get a name off the lease as the landlord will need to reassess the ability of the remaining partners and would be unlikelly to release someone early if the business is going…[Read more]

When you say business, what is the structure? Is there a company or is it a partnership or sole trader?

Or, you sell and rent for a period of 6 months while you look for the new one.This is the safest way, but then you have the hassle of moving twice!

I am a solicitor and have seen many people get into trouble. Many will sell and buy at the same time and assume the sales will go through as per the contract however things don't always happen this way.Imagine having to be out of your house tomorrow so the new purchasers can move in. At 4pm you find out there is still a tenant in your new house…[Read more]

Erg01 wrote:
An option I’m thinking is to refinance as much as possible onto the investment property approx $450k, and reduce the loan amount on the PPOR to approx $140k and any left over funds paying off the PPOR. This set-up would be tax effective but am I actually better off in the long run?

This would not change the tax deductibility of t…[Read more]

To make things simpler I would change the loans to IO with a limit of the existing balance. Then get a LOC up to 80% LVR for the remainder.WHen you buy the new home borrow the deposit from the LOC and get the remaineder from a new loan. Make sure only one property is securing each loan and take an 100% offset account on the new PPR loan.If you…[Read more]

Stamp duty would be payable in NSW as the percentage ownership would be changing.

Yes, ideally you should gift or loan a bit extra to the trust to cover any shortfalls for a short period. But I find that many people don't have the spare cash to do so and they end up transferring cash each month. This is not ideal as it looks less like a separate entity then and more an extension of the individual.

The common law rule is that a trustee cannot delegate their powers. But I think it is possible to a certain extent at least with the law modified by the Trustee acts in each State.

Ishtvan051 wrote:
The person you can employ to manage your SMSF would be the accountant? or someone else?

A trustee must manage the trust they are trustee of. They cannot delegate this role to others however, they can seek advice from professionals.

Yes, probably.

Most states allow duty free transfers from one to two names. I think VIC is one of the few that allows two to one name as well.

AlexiaNot sure what you are asking, but think of it this way:With a gift its gone forever. With a loan it comes back – even if you go bankrupt it is due back and could end up in the hands of creditors.

You should have not resigned from the existing job. Some banks can and do employment checks again closer to settlement.