Do you mean you need another loan to set up the farm on top of the vendor financing?

allawah wrote:
Thanks everyone! I'll probably call ATO to confirm. Believe they're the best people to ask.

Probably not the best, but a start anyway!

Doesn't sound promising narboz.You have no deposit and a a 60k debt. Sounds like you need to borrow 110% and will also have to find stamp duty too. Even if the vendor could finance you in to 100% LVR you would find it very hard to get finance to pay the vendor out in a few years.

Terryw wrote:
Being non residents complicates things. You will probably have to withhold tax from your payments to them. The rate will depend on which country they are residents of.

According to this article,http://www.grantthornton.com.au/files/sharp12050106.pdfThe rate of withholding tax is 10% regardless of which country the recipient is a…[Read more]

Being non residents complicates things. You will probably have to withhold tax from your payments to them. The rate will depend on which country they are residents of.

Yes, good idea. You may be able to lve in it for 6 months and get the grant and stamp duty exemptions too. Then you can class it as a main residence for years 6 while you move back home and rent it out and keep it CGT free.

I would be inclined to look for something cheap in a major capital city. Something with a relatively high rent return already and with potential to increase by tidying up the place – not necessarily you, but tradesmen. Some area which will be pulled up by the growth in surrounding suburbs. eg Sydney is extremely expensive place to live and rent,…[Read more]

BTW, I am not trying to be a smart arse or have a go at you,  just trying to get some critical analysis happening.

But what are you basing that on?

Spandex wrote:
I would like to buy in a new, up coming estate. Im here for all open advice in which path I go down.

Spandex,What is your reasoning behind wanting to buy there?

Hi AndrewIts applies to most unearned income of children see http://www.ato.gov.au/content/00282114.htm

You don't have to buy a cheap shack. My mate is constantly buying properties in Sydney that are returning 10 to 12%.My view is that you shouldn't be worried about the tax side, but about making money. It would be ok to buy something negative geared, but only if it is going to jump in value. There is no point in buying any old unit just with the…[Read more]

I would be interested to hear what the solicitor will charge you for all this advice and the wills.

He will just have to contact them and ask to change the beneficiary. They probably have a form to fill in for that.But he should get some advice on who to leave it to and how.

No. The insurance policy will specifiy who the beneficiaries are. Like a binding death nomination in a superfund. You should contact the insurance company and find out who is the named beneficiary and then change it if need be.What role each person will play in the trust will depend on their situation and should consider asset protection issues too.

Thanks NathanSounds really good.

No.If a trust is a discretioanry trust the trustee can distribute money or income to any of a huge range of people. You cannot direct a trustee of a discretionary trust to give the money to a specific person – or the trust would not be discretionary.So if you do want to leave money to a specific person then you can either give to them directly in…[Read more]

Great stuff Nathan.How does the deal finder work? Is that a buyers agent service?

I would suggest you do the figures for each scenario.

Yes, but if the testamentary trust is a discretionary trust then the trustee may have discretion to distirbute the proceeds to a wide class of people. You could have a separate trust in the will for the insurance, maybe a unit trust with 50/50 to the spouses, or a separate discretionary trust each with half the proceeds so then each spouse have…[Read more]