This is covered in one of the tax rulings. I can’t recall the answer specifically but I think it may be possible as long as it doesn’t create a new asset.

Best to speak to council or a town planner first to see if possible generally and then to seek specific legal advice on whether it would be a breach of the sis act. A lawyer can give this…[Read more]

You can’t use the 6 year rule in this situation as you are not absent from the whole property.

The cost base of the main residence could be reset at market value when the GF is first income producing and you would then need to apportion based on area.

See SDA009 which is a ruling from Revenue SA.
Look at example 1
https://www.revenuesa.sa.gov.au/rulings/SDA009.pdf

My understanding is that such a transfer would result in double duty as essentially it is an onsale

Pete – did you sell them for more than purchase?

I see it unlikely that rates will jump more than 0.25% in any one rate rise so to jump to over 7 would mean a about 12 or more rates rises.

With units it can be easier to get the valuations up because if another sells in the same block the valuer has a direct comparable. But this wasn’t me but a client of mine.

I know of no way to sell an option on a property and not breach the mortgage agreement, unless you notify the mortgagee. Same with caveats being lodged.

That is capital because it is payment for the property. Any interest component?

I did one with ANZ – new valuation done at the day of settlement which come in $20k higher. But many lenders want the borrower to wait 3 to 6 months between valuations and/or increases.

Also note that giving an option on the property would probably be a breach of the mortgage agreement with the bank.

It depends on the situation. generally double duty in VIC and in SA. You should seek legal advice before signing any contract.

Does the electricity and water show any usage?
What about photos?
drivers licence?
electoral roll
internet connection
mobile phone bill showing location
Evidence in the form of affidavits or stat decs if need be by other family members, neighbours etc.
It will come down to how thorough the audit is.

Start off with the end in mind.

You could gift a small sum to a trust and borrow back with the trust taking a mortgage to secure its debt. Later on the trust might lend you more money which increases your debt to it. The longer this happens the stronger it will be.

Looks like you are right:
=
HL8. Owner occupation and leasing
Note:
This clause does not apply to investment loans.
HL8.1 Consent to lease
If we give you the Loan so you can buy or build a home to live in, you must not lease the home without our prior consent
(see clause 11.2).
=

Are you sure about that? The ones that I have read have a similar clause, but another clause says you don’t need permission if renting out under a standard residential lease.

You should get legal advice on who should be the mortgagee – I would not recommend a company generally.

if not audited then no problem. If audited you would need evidence you lived there.

It could be a company but who would own the shares?

I see – it is just a marketing term. More commonly called the ‘gift and borrow back strategy’.

My answers to your questions below:
– What is an Irrevocable Mortgage?
A name for a strategy where a related entity places a mortgage over the property of another entity. It is not really ‘irrevocable’.

– How do you utilise this to protect your equ…[Read more]

There is no minimum requirement to live in the property, but it must be reestablished as the main residence again. You property could possibly exempt from CGT if you sold before Oct 2019.

Sounds like something that is from America.

Who would be the mortgagee and what would it secure? Where did you hear about it? was the person legally qualified and licenced?