With a hybrid trust people own the units of the trust. If you borrow to purchase income producing units then the interest would usually be deductible. This allows negative gearing in the trust.But because you own the units when you sell the property they trustee must by the units back. The units would need to be bought back at market value which…[Read more]

I don't like hybrid trusts because of the double CGT when you sell a property, lack of tax flexibility and lack of asset protection. Also financing is a problem.If your husband is on a high income what about, assumng you have paid off your home, using a discretionary trust and him gifting income into it. It won't save him tax from his work, but…[Read more]

It shouldn't matter how old they are. What matters is which one is going to give you the most profit. Tax is one small consideration, but the main one should be which will give the highest capital growth and the highest rental yield.An older property may mean slightly less depreciation over the long term. This shouldn't make much difference to you…[Read more]

Or, buy one property undervalue for cash. Then 'do it up' a bit and then mortgage it. Hopefully you will get close to 100% of the purchase price – assuming it has gone up 20%. Release the $200k cash an repeat the process.(make sure you get a broker first as it may be difficult to release $200,000 cash)

Generally there would be little problems until you are sued. Then it is too late.After w whle tax problems will build. Rents increase over time and an individual will ended up paying a lot more tax – which is good as it means you will be makin more money, but there is little flexibility to reduce or mnimise this. This is why some people describe…[Read more]

Sorry Robbie I am no longer a broker so can't really assist. It may be difficult to get a high LVR such as 90 or 95% with such a short period of employment, but if you are working in the same industry as in SA it may help.In Australia you will find all of the loans (from banks at least) are mortgage insured at amounts over 80% LVR. There are only…[Read more]

I would suggest you steer clear of Mortgage Originators. Best to stick with major banks I think.

Have you got a job yet Robbie?If not, maybe you could supply proof of income from South Africa. Without this you will find it extremely difficult to obtain finance I think.

there isn't really anything simple you can do, especially for existing assets. You could set up another trust and borrow money from the trust securrin the house with a second mortgage.But you will have the cash and it will be an asset which will be at risk if you go down. Would be expensive tax wise too,You could set up a trust and let it buy…[Read more]

Cattaby wrote:
Thanks for the replies all. It doesn't sound like something I will need (everything has been fairly straightforward, and there are no other interested parties), so I think I'll keep my $250 and put it towards a few slabs of beer instead

how do you know there are no other interested parties?It will be very rare to get hit, though…[Read more]

In NSW the law society has recommended that solicitors suggest to the purchasers that they lodge a caveat after exchange because of a recent case called Black v Garnot. In this case a third party lodged a writ over the property relating to some sort of debt. This writ was lodged after the solicitor did the final title search in the morning, but…[Read more]

There will be little to no asset protection with you transferring to your parents (or a trust) for free. Even if you do it for market value it could be clawed back, especially in the early years. Have a quick skim thru the bankrupcty act.Either way you will be up for stamp duty and CGT at market rates for a transfer to parents or a trust.

Here it ishttp://www.lawbooks.com.au/book/drafting-trusts-and-will-trusts-in-australia.doits only $159 – so why not buy 2 copies.Drafting Trusts and Will Trusts in Australia Author:   Flynn ,  James Kessler Publisher:   Law Book Co of Australasia [Read more]

st81hp79 wrote:

Terryw wrote:
There is a very expensive book out there called something like "Drafting wills and trusts" which is a good read. It outlines the anatomy of a deed and explains each clause in a deed and what it is for etc. Costs about $350 but I think there is a CD included too which contains draft deeds and different clauses.…[Read more]

That sounds about right.But to be able to carry forward the losses the trustee would need to make a family trust election and this has an affect of reducing the beneficiaries to close family members only.

silverx wrote:
Terry: mmm if only I can employ her to take care of our daughter it's more than a full time job On serious side, I might look at setting up a company and employ her

You would have to employ her in some way so as you could claim a deduction. Otherwise you would be still paying the same tax and she would be paying tax on her…[Read more]

Your wife would probably be a beneficiary of many trusts – unknown to herself perhaps. Trusts are worded widely to catch as many people as beneficiaries as possible. So one of your family members, even distant family members, may be able to save to tax.If one of these trustees could distribute to her that is possibly $16,000 that would go to…[Read more]

Is there any way you could employ your wife some how?

You can only claim your own deductions. Since you don't own her half you cannot claim for expenses related to this. If she ends up with a loss she can carry forward until next year.But this is a shame as an individual can earn up to $16,000 pa and not pay tax. Do you have any family members with discretionary trusts who could divert some income…[Read more]

st81hp79 wrote:
Hi Terry,My accountant has got back to me on the above question and you are spot on!The "Appointer" they believe can't be sued by an external party, so the role should be safe.regarding to the RE contracts, you are right, the directors of the trustee company signs the contracts.So if that's the case what's the cons and pros of…[Read more]