Why not do both.Buy a PPOR, live in it for a while, then rent it out. You can maintain it exempt from CGT and still be able to claim all the deductions.

a bare trust would be exempt, under s35, Duties Acthttp://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s35.html

better use a solicitor next time.

Conveyancers are not lawyers and so provide only limited legal advice. they just do the conveyance of the property from their name to your name. You should really have used a lawyer to get proper advice. Did you tell them that you wanted to build?If you have not settled on the property you may be able to terminate the contract if a s88B…[Read more]

I would suggest IO for your loans, especially investments. You should save the same interest anyway if you have the offset (unless you are tempted to spend).You should be bale to apply for a loan increase too.Banks will take into consideration you living at home, some banks will assume you pay a small rent others may not.Hope you can keep on…[Read more]

The Land Tax rules are different and will vary from state to state.

for CGT see s118.145 ITAA 1997. You can be absent for up to 6 years and not have to pay CGT.

g0biin wrote:
Yeh, I dont know to much about the legal side, but two suggestions I would make or agree with is.1.be nice.professional2. Record your phone conversations

see Telecommunications interception Act.

It depends on your view of property growth. If property were to grow more than your cost of holding it, then it would be better to hold more properties.How good is your crystal ball?

god_of_money wrote:

Terryw wrote:
Why is he worried about asset protection relating to a loan? it is the ownership of the property that counts. Maybe he is thinking that the loan could be associated with the trustee in its own right and so if the trust is attacked it would have no loan and more equity. But I can't see this as…[Read more]

Why is he worried about asset protection relating to a loan? it is the ownership of the property that counts. Maybe he is thinking that the loan could be associated with the trustee in its own right and so if the trust is attacked it would have no loan and more equity. But I can't see this as happening.

A trust is not a legal entity, so it shouldn't really matter what name the loan is in. Trust name or trustee as trust name either should be fine.In NSW only fixed trusts get the land tax exemption. DTs are considered special trusts and don't get any threshold. Trustees of fixed trusts (some but not all unit trusts would be fixed) may be assessed…[Read more]

ok, that may make it doable.But if someone cannot pay the mortgage then they are possibly in great financial difficulty. If they were later to go bankrupt then you may have to deal with the clawback provisions of the Bankruptcy Act, particularly if you are paying under market value for a property. So make sure you seek legal advice for this sort…[Read more]

I think you will have a hard time convincing the owner of the property to allow you to keep the rent!

god_of_money wrote:
Yes… agree with above… can distribute to your children 3k pa with 0% taxGood on you… single with 1 kid and good equityTerry, I went to see my accountant and he suggested to buy using unit trust under DFT to avoid the land tax. Is this sensible?i.e. discretionary family trust that would own unit trust of the…[Read more]

chalkergroup wrote:
so as a whole the trust would or would not be entitled to the 50% CGT discount?

Don't forget trusts don't pay tax generally (unless the trustee doesn't make a distribution and then the trustee is tax at top marginal rate). If an individual were to be distributed a CG then the 50% discount would be available if the criteria…[Read more]

Always own growth assets under  a discretionary trust structure as this offers the greates flexibility in terms of tax and some asset protection as well. Never run a business through the same structure, always have these separate because of the risks.As you have paid off one property already and run a company you should consider using a DT for…[Read more]

I recall going to one of Steve's seminars about 10 years ago where he suggested using 33% of your income to invest, 33% to live on and 33% to pay down debt. Getting rid of debt is always good.But, I think it can work out better using Jamie's strategy. particularly if you have non deductible debt as paying this down first will mean tax savings. You…[Read more]

It is just an option agreement.If you cannot settle or assign your option to someone before expiry it is over for you. You would lose your option fee and any expenses incurred and will have no rights over the property unless you can negotiate a whole new agreement.It is a very good strategy for making money from seminars, but very hard to…[Read more]

It is possible and it is legal, but the ATO could deny the deductions if they consider it a scheme to avoid tax. So I would suggest a private ruling too.Also it may be easier to set up your main loan as IO and then a separate loan in the form of a LOC and then borrow from the LOC to pay the interest. Keeps things separate in case the ATO deny…[Read more]