Don't forget Steve was wrapping properties, so was getting a deposit from the purchasers as well. The properties back then were around $50,000 and the deposits from the FHOG were $7,000 per property.

The trustee is the legal owner of trust property and its name goes on all title documents such as land titles, bank accounts, share certificates etc. With land the trust is not mentioned on any title documents, but with bank accounts you could have the account as trustee for the xx trust.There is new legislation relating to anti-money laundering…[Read more]

Sorry, just reread and see your first loan is also an investment..If you don't have non deductible debt I would still suggest the above set up but have a 100% offset account linked to one of the IO loans and plough all cash in there while still borrowing the money to fund repayments. This will free up cash for future personal use if the need…[Read more]

Get a LOC of up to 80% of the value, less existing loan. Make sure it is a separate loan.Value $500,00080% = $400,000Existing loan = $100,000So the LOC would be $300,000 maxThen the deposit and stamp duty etc should come from the LOC with the remaining coming from a new IO loan.Talk to your accountant before you begin about using the LOC to fund…[Read more]

neil mackay wrote:
Some time ago we were required to refund our small development. We approached several brokers over a 12 month period and finally one broker came through with a mandated letter of offer from a funder. So we duly filled out the paper work and paid our fee 5k+ and sent it off. One month goes by and it appears the funder has no…[Read more]

You don't need a PIT trust to avoid vesting. All you need is a trust set up in South Australia, the only state in Australia without laws against perpetuities (but could they introduce laws in the next 80years????).Also, having a property in a discretionary trust only provides limited asset protection. How well protected it is will depend on how…[Read more]

Hi StaceyThanks for the reply.Not all increase in stock value would be profit.eg. say you had $200,000 worth of cups in your cup shop at the start of the year and then these increased in value (due to a dramatic increase in the demand for cups maybe.At the end of the year these cups may be worth $500,000. A $300,000 increase.But if you haven't…[Read more]

Hi StaceySome good points, but also some inaccuracies.You are confusing income with corpus. Any income of a trust that is not distributed at the end of the financial year will be taxed in the hands of the trustee at the top rate. So it pays to distribute!But any assets of the trust – such as real property, cash in the bank, shares, stock (eg.…[Read more]

You can't really expect appreciation because values are said to be rising. You should probably look at recent sales of comparable houses and see what they are selling for (not advertised for). If values come in as expected, the next step would be to ask your bank for an increase.

An ABN is just a registered business number. It is the entity behind the ABN that is the legal owner and that is what is important.

You should also read your trust deed and see if there is anything in it to prevent a beneficiary living or utlilising trust assets. You may have to pay market rent for example. Also consider losses – may be trapped in the trust if the trust has no other income.On the plus side, you may be able to claim more things depending on how it is structured.

hi NadaimeeI think you may find SMSF can't do this sort of thing. Property held by a SMSF is unable to be developed or substantially renovated. Any profit would also be locked in the fund until you are able to retire or take a pension etc.The DT should be a good option and any land tax or negative cashflow initially shouldn't matter too much if…[Read more]

Is your broker qualified to give tax advice? Ask him to back up his advice in writing and see what he says.You will also find it very hard to finance a property in the name of one person if both are on title. The person not on title would have to guarantee the loan.

Yes, that broker doesn't know much – don't use him would be my advice.Ask him what would happen if you crossed the loans and needed to sell one property but the remaining one had dropped in value?

I would think you should have a separate structure for each country. There are lots of tax implications with investing os and one structure would not fit both countries.I am not sure what you mean by 'double protection'. its not really double, but protection against 2 separate events. Having a corporate trustee will protect the individual behind…[Read more]

Going guarantor would expose you and your assets if things went wrong. If your husband stopped paying the loan, then you would have to, if you couldn't your husband could lose that house, and if the sale of the house is not enough to pay the loan, then the bank could come after you and your assets.Having a caveat won't help. This will only prevent…[Read more]

you will also find the PPOR CGT exemption is only land up to 5 acres

Since both names are on title you will just have to treat it like a normal sale. Get a contract drawn up, find a buyer and both of you sign the contract as sellers. Both of you also need to sign discharge documents for the bank and transfer.

Max value wrote:

PaulDobson wrote:
"The answer to your question is a technical one – there is no assignment of property in an instalment contract. What happens is that the vendor is entering into a Contract for Sale. It is only on completion that an assignment (known as a Transfer) takes place.An Instalment Contract is a Contract for Sale w…[Read more]

PaulThat may be the case concerning an assignment. An instalment contract is really a normal contract with the settlement period extended from the standard 42 days to about 30 years, with some other conditions such as the right to occupy before completion.But there would probably be other provisions in the mortgage conditions which may prevent an…[Read more]