I don't think the average property is a good investment in this climate. You need something special to get any gains.Assuming you could find a good property, why not do both?take out your cash and buy a house to live in, get the FHOG and stamp duty exemptions. Stay for 6 months, do it up to maximise valuations and rent. Then move out again but to…[Read more]

Why not leave ownership as is. Legals, stamp duty and CGT will kill you. If you are concerned about succession planning you could set up something in your wills.

Mortgage House are introducing a 99% LVR loan too

If you are buying with the intention to make a profit by sub-dividing, then CGT may not even apply – it would be general income tax.Tax would apply on the portion of the land that is split off. It may only be the portion retained as the PPOR that is exempt. eg if you split into 4 then 3/4 of the land will be subject to tax.

I vaguly recall reading it is something like 30%.

If your friends are on title then they will be required to go on the loans. So you would have to come to some other sort of arrangement such as a loan from them for the cash injection or have them as beneficiaries of a trust.If they are beneficiaries of a trust and then they receive a distribution then this will create tax issues as non residents…[Read more]

I've done a search on the ATO site for the ruling, but it hasn't been published publically (yet?). WIll be interested in reading it.

I agree with Greg – but just make sure you seek expert advice on setting this up or the ATO can disallow it. A recent application for a private ruling on something similar was rejected by the ATO. see http://www.bantacs.com.au lastest newsletter.

Amanthat sounds much better.Maybe you could have it so that there is a interest free credit card with points and all bills are paid with the credit card and this is paid offf in full each month. This will leave cash in your offset a few weeks longer saving you more interest and you will be able to get gift vouchers with the points that build up 

Trusts may costs a little to set up and run, but the benefits are great in the long run. It may not pay to transfer existing assets however.Also consider the limited liability benefits of a company.

In NSW using different entities wouldn't work if they were classed as related entities – same people/relatives controling. I haven't looked at the situation in VIC, it may be possible but check with a solicitor first.

I think you may have confused a few things there.Why bother with an offset on the investment property? I would not use one there until you have fully paid off the PPOR loan or have the 100% offset attached to this at the level of teh loan.I am not sure what you mean by " Set up a Offset when you have build up enough equity in IP (To start with,…[Read more]

Just think of your sister as a second lender.

Its called aggregated stamp duty. see s24 of the Duties Act (Vic)http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s24.htmlYou may need to stagger the purchases over 12 months to avoid aggregation.

Ummester – it looks like your 'bearish'

Probably what you should have is a normal loan, preferrably IO, for the existing debt on your home loan and then a separate LOC for any equity up to 80% LVR.When you invest you take the 20% deposit for the investment property from the LOC and borrow the remaining 80% as an IO loan separately.

Don't forget loans have no bearing on CGT.Hi Graeme – I think I know you from many years ago.

Hello GIf you wish to transfer the properties now you will be up for stamp duty, CGT, legals and there will be little benefit of asset protection, especially for the next 5 years.It would be a good idea if your husband ran his business thru a company rather than a sole trader as this will provide more protection.

There would be CGT or just income tax on the sale as it was not your main residence for the whole period

Land tax should be only one consideration – albeit a big one in NSW. What about tax benefits of a discretionary?