Hmm, that is like saying you need a good chef and have tried maccas and KFC.

You only have to charge GST when you sell. Whether main residence or investment before that doesn't really matter I think.If you want to claim GST, then it is an investment property you would claim it as part of the cost of construction I would think. If it is a main residence then you wouldn't be able to claim it at all.

Hmm, that is like saying you need a good chef and have tried maccas and KFC.

TGWhy not do the sums and see?Also factor in if you live in the house first you can rent it for up to 6 years and have it CGT free. That could be an additional big saving.And buyers agents fees are considered a capital expense and only deductible against the capital gains of the property when sold.

All new residential property is subject to GST. The GST act defines new as being substantial new and and less than 5 years old building a house would qualify as new. I know of know exemptions for main residences. I think the only way around it is to hold it for more than 5 years.

Dean Potter wrote:
Oh and one other tip, once a lease lapses, and becomes periodical, you must give 60 days notice to the tenant to vacate. There's little things like that that can catch you out. Good luck!

This may vary from State to State.

Yes stamp duty and CGT exempt on transfer subject to court orders or marriage breakdown. etc – But if it is an investment becareful about CGT as you could inherit her gain and end up paying extra tax.

Just cause you call them a contractor doesn't mean they are not an employee – there are various tests to determine this. So do be careful. Nevertheless it could be a good way.

Nope.One party can't sell the property if both on title. They would need an order from the supreme court or the family court. Even if the other party is not on title she/he could get a caveat and prevent settlement.These things can drag on for years.

On issue with the land is that the loan would need to be in all names – the same as title. So if the other party stopped paying, then you would be responsible and you could be used and lose your other assets if there is a short fall.You could possibly avoid stamp duty on the splitting of the bocks into one name each – but you would need a deed of…[Read more]

What you can do to help the situation is to:1. Start borrowing money to pay for all expenses associated with that property – rates, insurances2. Look at setting up a system whereby you can borrow to pay interest on the loan for the IP.You will find this frees up cash which can then be used to pay down the new non-deductible mortgage – or better…[Read more]

Having a farm like that is one of my dreams, hope it works for you,Have you tried Stacks Finance? They can lend up to 50% LVR on farms with rates around 10.75%. I have some details and can forward you a recent email if you need it.

What about the income from the nuts?

Its strange that agents don't care about property management. They seem to think it is the sales side that matters, but it is the management side that brings in long term passive income. As they build up a list of properties being managed they can then sell this loan book to other agents. The going rate is about 2.5times the annual income…[Read more]

Watch out for the legal issues too, especially vicarious liability – you can be responsible for acts committed by your employee. Also make sure you have property insurance in place in case they fall off the roof or electrocute themselves etc.

He owes nothing on the property – maybe he is trying to set up a LOC for further investing?

wow, that would hurt serviceability.

You will take over the existing lease at settlement. So you will need to contact the agent or the tenants and tell them to start paying yourself.I would make sure you look at the bond issue, and make sure you do a condition report asap. Doesn't really matter what they did before you owned it as you are buying as is, but you don't want them to do…[Read more]

Trusts are not legal entities, so the name on title will actually be the trustee and this is considered the trust owning the property.Loans don't really matter for taxation it is the ownership that is important. If owned by X as trustee then it will be the trust that claims the interest and expenses, not X. You can have both names on the loan or…[Read more]

Lancelot1 wrote:
Hi,Looking to set up a Discretionary Trust but I'm a bit confused as to whether I need to set up a  "Family Company" as a beneficiary or can i use"each corporation of which a Beneficiary is a director and owns at least one share (alone or with another person)" to take advantage of income distribution at the 30% rate.Also, what…[Read more]