Also think of the asset protection aspects.A gift is not returnable (but could be clawed back in some instances). A loan is always an asset of the lender.There is usually a trade off of asset protection v tax deductibility.

If you are gifting the money to the trust then you could not claim a deduction on the interest on the money paid from the LOC. A gift is not an investment and will not produce any income or return. So interest on borrowing to make a gift would not be deductible.If you borrow and onlend to the trust at the same rate then the trust would end up…[Read more]

I think it would depend on a number of things such as if they are aware of it (they usually don't read broker comments!) and the LVR.

Yes, it should be disclosed.

If you gift it then you cannot claim the interest on the LOC. This will mean you are paying interest and won't be able to claim it.A $500,000 puchase price would mean a $100,000 gift. That would be $7000 pa interest!

Whether to do it with a trust or not will depend on whether you will live in it and claim it as a main residence.There are also ways to structure it so that only one of you has to guarantee the loan.

You have better get good legal advice as you wouldn't want to do all that work and then find out the option was invalid or not exercised in time etc.

You are a brave man! Going on th word of a public servant!!Here is a recent VIC case where the purchasers signed and agreement before the trust was established.Scouller and Anor v Commissioner of State Revenue (Taxation) [2011] VCAT 998 (31 May 2011) http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/vic/VCAT/2011/998.html

Yes if the bank product allows it. The loan number etc doesn't change.

Even if you had small savings it all adds up and makes it more tax efficient. offset accounts will save you daily interest too. $100 in an offset for 1 day will save approx 7 cents per day. Add to this the interest on interest getting bigger each day. This may not sound like much, but imagine with a balance that is rising and compounding.Add to…[Read more]

Hi JasonWhat about my example where the loan is paid down by $100,000. If S then later wants to buy a place to live in then what would happen?eg. 1$100,000 would be availabe for redraw. S takes that money and uses it as deposit for the new house. But since this is personal borrowing the interest on the $100,000 would not be deductible.eg…[Read more]

rleclair wrote:
Yep, I've dealt with Andrew McBay – and must admit I'm real happy with his services; have been with him for a couple of years already and we've already accomplished one of our big goals.  In the process of accomplishing more.As for his website there is one :- http://www.themoneyroom.com.au/Richard.

hmmm, nice first post!

Maybe get some structuring advice from a lawyer too before committing.

There are restrictions on smsf buying assets from members – cannot acquire residential property etc from a member.There would also be stamp duty and CGT consequences of transferring property (ie real property such as land) into a SMSF. However, if you had a property owned by a unit trust it may be possible to transfer the units to the SMSF if the…[Read more]

Sorry for the spelling mistakes, I was on my iphone when writing. I meant to sayThat would be under trustee powers

That would me under trustee powers

The trustee of the trust just makes a resolution to do XXX and records this. I just read one of my deeds and the trustee is allowed to transfer any of the funds to any beneficiairy.or make a loan to any beneficiary on any terms.

Actually it is not a good idea to pay down loans, especially investment loans. This is because your money will be tied up in the loan and won't be accessible without adverse tax consequences. It is good to pay down debt – but not tax effectiveA better way would be to set up a IO loan and a 100% offset account attached for all spare cash.Otherwise…[Read more]

NonnieE wrote:
Hi everyone,Has anyone used http://www.lawyersconveyancing.com.au for conveyancing?  I'm interested to here your reviews if you have.  Seems easier to do it all electronically.ThanksNonnie

I am a solicitor and have read a few articles on that site. They seem to be very knowledgeable in the area of conveyancing.

If the trust deed allows it the trustee may make gifts.