I would think he would have to file an Australian tax return and all the property would be claimed here. Not sure of PNG's requirements but he may have to declare Australian income there too. If it results in a loss here, that loss would be carried forward unit he gets an income here to offset it.But I am only guessing really.

itsandrew wrote:
Hi Terry,Is it a good product (rates, application fees etc)?  What are their break costs like?Andrew

Not sure sorry. You would have to check with your broker.

majors are usually around $900 to $1000 – unless fixed loans. My recent westpac loan was $900 exit fee – or $1000?

Yes, when I was a broker I had a client have the same problems with St G. Client had to ask a family member who didn't even know about the trust for her permission to get the loan.I haven't seen a double stamp duty issue, but I have heard of solicitors mucking it up and a client getting slugged twice.

Yep.Why not just use a major bank?

if thats all it is then it shouldn't be a problem

Bankwest has just reintroduced their 95% LVR loan too. LMI can be captialised too.

I would be asking what are their exit fees like?

Its best to never name beneficiaries where possible and that gets around the problem. You could possibly amend the trust deed but you need legal advice as it could cause a resettlement. I am curious what role the company plays if you are the trustee. I am also curious what the deed of trust declaration says. If the beneficiary is saying X holds…[Read more]

I think it may be possible -best to check with your tax advisor. LC, deposit bonds are a PIA. If you have the funds available I think it is easier to just use them.

juggling investor wrote:
I am also debating of selling my existing home as its getting a bit small to buy a larger one …love to keeep it as all my kids memories are in it…If  I was to rent it ..my tax agent said the rental income would be considered as incomeLost of what to do…what would be the best option ….????Thaaannnkkk   yooo…[Read more]

Thanks for the update JPS.I think there is nothing different about claiming depreciation and other costs etc for a non resident.

I wouldn't take tax advice from a CBA banker. Do your own research and then see a professional. An offset account is a savings account so there should be no tax implications of using it. If you use a so called all in one account which is a loan (LOC or redraw) you will end up in an awful tax mess. See the post…[Read more]

AndrewTrusts provide the greatest asset protection – discretionary trusts that is. But it is not simply a matter of transfering property into them. You need to proceed carefully.Just 2 examples of why there could be little asset protection in this situation. If you transfer property undervalue it can be voided under the bankruptcy Act, s120,If the…[Read more]

Do you mean your accountant didn't originally suggest getting a depreciation report done?? You shouldn't be buy property to reduce tax, but with the aim of making money. Tax should be only an incidental consideration.What strategy is there to implement that needs paying for?

The only way is to make sure you are claiming everything you are entitled to. No accountant is able to tell you everything so just try to  get your head around it a bit and offer up suggestions for your accountant. Basically any expense that is related to money making can be claimed some how. Did you know that you can claim travel to see your…[Read more]

It might be better to sell. I suggest you do the sums and see.Buying a PPOR will also enable you to use the CGT exemption too as well as not having to pay increasing rents.

LMI are probably worried about your gearing levels.You could try another bank, but be aware that many of them use the same LMI, so the problem may follow you. I suggest you use a broker too.

If you sell to a trust there is little (or even no) asset protection so seek advice.CGT is payable at market rates so you will need a registered valuation for CGT and Stamp duty purposes- consider the land tax issues and the fact that trusts cannot offset losses- new loans will need to be arranged.- depreciation is on construction cost i think.

I would also suggest you stop paying down the loans. Do you have a 100% offset account set up? IO with all the spare money into an offset account would be the way to go. Otherwise you are paying down deductible debt and the money is trapped in the loan – you can withdraw it but only with tax consequences.I assume that one day you may want to buy a…[Read more]