My idea of risk is more like the unforeseen circumstances – job loss, sickness, change in bank policy, drop in values etc. All this can happen – even if you can service now you may not be able to in the future.

Sounds like a related party transaction to me.

Terryw wrote:
The settlor has to be a person – natural or company. I think a settlor can be a beneficiary, but this will introduce tax problems. But I have never looked into this – although i did see one client who had his son as settlor for some reason.Why create the uncertainty? Just set up the deed here and get joe blow to be settlor -…[Read more]

Sounds like a scheme to defraud the ATO to me!There are many issues to consider. Firstly it is an arrangement by related parties so will be scrutinised more closely during an audit.- You must pay market rent to your dad if he wants to claim the interest.- Stamp duty considerations on the transfer of title- CGT for your dad when the transfer is…[Read more]

You should look up the websites of the bodies you want to join and then download app forms and see if they ask the question. I think bankruptcy may hinder any job which involves money. You could be a lawyer though!With trusts the ownership of an asset is legally with the trustee. So long as you were not the trustee you would be right. But you…[Read more]

I think it would depend on if he thinks he could get a better return elsewhere after taking selling costs into account.

1. The borrowing expenses themselves can be claimed over 5 years or the term of the loan if shorter. If you borrow to pay the borrowing expenses then the interest on this should be deductible too (eg capitalising LMI)2. If you borrow to pay rates and other expenses then the interest on this would also normally be deductible if it is an investment property.

Very risky – Don't stretch yourself too far. What happens if you don't have enough cash to settle in 2013?

MattIf you are not happy why not just leave? – probably because of the exit fees? You could at least threaten to leave by requesting a pay out figure.

If you are working in the finance industry you will have problems – it may be impossible or very difficult to gain membership to professional bodies if you have been bankrupt in the past 10 years – This used to be the case in mortgage broking and financial planning and probably with accounting too.If you want to borrow and cannot all you need to…[Read more]

The settlor has to be a person – natural or company. I think a settlor can be a beneficiary, but this will introduce tax problems. But I have never looked into this – although i did see one client who had his son as settlor for some reason.Why create the uncertainty? Just set up the deed here and get joe blow to be settlor – someone who you will…[Read more]

Buying a house is a huge expense – if you do it yourself and stuff it up who can you blame? If you get part way through and can't do it then you will need to pay a lawyer to sort it out anyway so why take the risk?

John – you don't say if you are a resident in Australia for tax purposes (this is different to your immigration status – you could be a resident for immigration purposes but a non resident for tax). If so then I suspect you will be able to claim the Australian home as your main residence. There is no minimum period required to live in a house to…[Read more]

Must be WA – they are high over there.

Whose book? Steve McKnights?There is no need to register a trust. In many states stamp duty may be payable on the trust deed though.Whether you have a mortgage on your house shouldn't matter, you can still get a trust started and you could even get a loan in the name of the trust, such a LOC but using your house as security.

WW are you sure?My understanding is that a property cannot become your main residence until you have lived in it. Not that it will make much difference as any capital growth during the first 4 months will be minimal.

tell them you want a cheque – then deposit it in the account.

Mine was a new block with a new house – never lived in which meets the definition of new under the act. I have some notes on the research I did somewhere. I will report back tomorrow and in the meantime, You should look at the primary legislation which is the GST Act http://www.austlii.edu.au/au/legis/cth/consol_act/antsasta1999402/

You could do that or just put the funds back into the loan without them being deposited into savings/

MRW wrote:
I'll show my ignorance here.Would there be any reason to have an offset account against an IO loan?My understanding is that an offset account against a PI loan means you'd be paying off more of the principle as the amount in the offset gets subtracted from the loan amount before the interest component is calculated? (That's not worded…[Read more]