Err, Richard is a broker.

The FIRB is not concerned with borrowings, just the purchase. You can borrow – the only problem is finding a lender willing to accept you which won't be easy as you work is temporary in nature.

Safer to just invest in shares maybe????

TD 95/9 http://law.ato.gov.au/atolaw/view.htm?locid=%27TXD/TD959/NAT/ATO%27&PiT=99991231235958 TD 95/8 http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD958/NAT/ATO/00001

Yes, your trust will need a separate bank account. You are not your trust and you should not be treating the trust's money as your own or you may be breaching your fiduciary duties. Failure to distinguish the trust's assets from your own may also mean it is a sham trust or not a real trust. Not a good asset protection strategy.

There was another recent case in the NSWDC involving a landlord, Giovenco v Dick [2010] NSWDC 4.Exposed wire on the roof from a disconnected solar heater killed a person and the landlord and plumber were ordered to pay approx $800k to the widow,see…[Read more]

buymore wrote:
i only just found out about it today. i will write a termination letter to them today.

Another way of looking at it is that they will be likely to be much more careful in the future, whereas other agents  may not be as aware of the dangers.

Firstly, that bit about unlimited borrowing capacity is not correct. A trust won't really help borrowing capacity in the way you think because of personal guarantees.Secondly, it is never too late – but you will probably be up for stamp duty again unless you could establish that the trust existed before the contract was signed and the person…[Read more]

Sounds like the daughter may have appointed herself as appointor of the trust as she was involved with its set up. Do you have a copy of the trust deed? And who owns the shares to the company – I assume this is the trusee?The daughter has probably borrowed against the property or used it as security maybe too.If the mum is a beneficiary of the…[Read more]

HiI have looked at the legislation previously and recall, maybe…., that it says something like will be the principle residence of the parties…So you have to convince the OSR that you are only temporarily absent and will be moving back to the property in the near future.There is no reason to transfer the home to access the equity for the next…[Read more]

Was it a gift or a loan? Gifts are generally non refundable, but it is possible to get the money back in some instances. If she controls the trust then she can sack the company as trustee and appoint herself as trustee. Subject the to wording of the deed, she could then distribute all the assets of the trust to herself.If the directors of the…[Read more]

If you are so unsure maybe you should keep learning. You don't want to go too tight too, make sure you have a buffer for when things go wrong.

Hi MorgoI don't think you fully realise the implications. This is your home and is on one title, so renting out a part of it would mean you will probably pay CGT when its sold – where normally it would be exempt.Since it is one title you can't really do anything with the loans.And there is not much you can do with a trust as to transfer the home…[Read more]

He would be referring to CGT there. If held for more than 12 months individuals can get the 50% discount. so if you buy $50,000 worth of shares and they jump to $150,000 the gain is $100,000 but you are assessed on $50,000 of this only.Companies do not get this discount. Trusts usually distribute income and if they distribute to an individual they…[Read more]

Here are a few points:- A discretionary trust would be great, but it may cost a bit to set up and there are issues with losses (minor).- no need for a business- to write options you generally need parcels of 1000 shares in Australia. In USA it is 100 I think. There are options that last for 2 years or you could write shorter ones and redo them…[Read more]

Def talk to a broker. The loans set up like that mean it is costing you money – you should not be paying down an investment loan while you have non-deductible debt.

One potential problem is that you will probably lose the CGT exemption on the part of the property you are renting out. It may give you a bit of income now but may cost a lot more in CG when you sell – then again it may not as it will depend on how fast values are increasing.You may also have issues with your insurance so make sure you tell your…[Read more]

You must be referring to the 6 year absence rule? s 118-145 ITAA 1997 is the law and it refers to absences, so I would interpret that  you can be away from the property for up to 6 years and still treat it was your main residence.There are also no time limits on living in the property to establish it as the main residence. Presumably 1 day would…[Read more]

flare_windmill wrote:
Hi tony, Thanks for the advice. I think at this stage I'll go with the idea of topping up my existing loan and using it as a deposit. It will make life during tax time simplier! Will the bank work out my maximum lending amount of money without taking account the equity of my first investment property? As the interest…[Read more]

I am not familiar with that software – are you changing the amount of money put into the deal somewhere?