Tony Cordato in sydney

god_of_money wrote:
Terryw, what do you mean by legal advice?treborsuj, what rate did u end u paying?

Many issues could arise. eg in relation to trust law, family law, bankruptcy, estate planning, stamp duty, CGT, mortgaging, difficulty selling if one party doesn't agree etc. Disputes can also arise about who pays what etc

I think it can be very good in some circumstances. Its a great way to get into the market with little deposit and a great way if you have had credit problems in the past. The rates are usually pretty reasonable too with little or no break costs to pay out early.

Trusts are extremely complex, so the first thing to do would be to learn the basics to try to understand them a little bit before making a decision.

Yeah, that is not your debt but your company's debt. So you borrowing to pay it out won't be deductible. It may still be possible and advantageous though, depending on the circumstances.

Good to hear. That is thinking and sounds like you are very happy – but hope you got legal advice on the implications.

PJThat won't really change anything. You will be borrowing to repay a business debt, so you will be unable to claim the interest. Its the purpose that counts.

You can transfer it at any amount, but both stamp duty and CGT will be applicable at market rates.

Maybe you can get the FHOG then.

Banks are companies, not charities, they are in it for the profits. Therefore they should do everything they can to increase the profits (within the laws of course). The directors also have duties, under the corporations Act, to do their best to make profits for their shareholders.

If you have a loss in the company you need the company to make a profit to offset the loss. You could also do something with a discretionary trust and then distribute profits to the company to offset the loss.you won't be able to just transfer the loan to yourself personally and claim the interest. as it belong to the separate company.

Ideally you should have used a LOC on existing properties instead of cash. By using your cash you have done very good, but you have tied it up. If you had used equity you could have had a large amount of cash available which you could have used for the purchase of a property to live in, or other personal expenses.

MarioIf that is the case then you could use a new trust if you can find a servicing person willing to take part. Just make them a beneficiary and/or director or shareholder of the trustee company and they should be able to guarantee the loan with their other income being rtaken into account. Just make sure it is a new trust and don't change…[Read more]

It is generally good to keep your cash in the offset and not pay down the PPOR loan. But this may not be the case if you don't have equity and need to use cash to start. If you take the offset cash your PPOR loan interest will increase and you won't be able to claim this so it would be better to pay down the loan and then reborrow it as a LOC.…[Read more]

Write back to them saying you didn't request them to act for you or authorise any searches to be done.

I doubt you will be able to get the FHOG unless you are a permanent resident or citizen.You will need to do a lot more reading on trusts I think. So much to understand.property owned under a trust can't be claimed as the main residence and CGT will apply. FHOG is not available for properties owned under a trust structure either.Don't always…[Read more]

If there is a cooling off period that means there is a contract. The vendor will not be able to pull out, usually, but the potential purchaser can still  do so.

There is a lot of differences there.A partnership is the most dangerous structure – it is not a separate legal entity with each partner involved being liable for the whole debt of the partnership. When you sue a partnership you sue all individual partnersA company is a separate legal entity which can sue and be sued in its own right. Shareholders…[Read more]

Yes, just go and work overseas. If you worked in Japan for example you could borrow money at around 2.5% to buy property in Australia.

Why use your cash?If you take money from your offset your nondeductible loan will increase.OrPay the cash into your loan and then reborrow it as a separate loan and then you will be able to claim extra interest. Also look at selling your shares and then putting the money onto your home loan and then reborrow it to buy back the shares again. This…[Read more]