Hi MThats good news about the CGT. But, may I ask, why would you buy using a unit trust? Did the accountant give you reasons?

Ryan273 wrote:

Terryw wrote:
You wouldn't pay CGT, she would as she is the one selling. You would just need to pay stamp duty and loan fees.There is no spousal deals between sisters I am afraid.

Terry, would you have to pay stamp duty on the value of the house, or half of that as that is effectively the share of the house as you already own…[Read more]

cmason wrote:
Was discussing this with my lender yesterday, they don't have the concept of a Line Of Credit, for investors like myself what they do is create a standard IO loan draw down the funds and dump it in the redraw for you to use as you need, would this situation be different because the funds are put in the redraw instead of an…[Read more]

Figc wrote:
Terry I do not have a home loan. All loans will be investment. Does this change things.

Hi FigcYes, that would make things different.If you take money out of an existing investment loan the interest is deductible anyway, so you are not mixing personal and private. So there should be no issues with apportioning interest etc.Just…[Read more]

Hi RyanYou would only be transferring half the house so stamp duty on this portion only.

nope.The equity portion will still be borrowed from the personal loan and this will be mixing business and pleasure. Also this may cut the connection with using borrowed funds. Remember interest is only deductible if the funds are borrowed. Once they are in a savings account they are no longer borrowings.

Yes.Ideally you should have a separate split on your loan for taking out the 20% deposit. If you don't you will be mixing business and personal loans and every repayment you make to your home loan will also be paying off this debt which will reduce your tax savings.There will also be issues with you borrowing money and placing into an offset. If…[Read more]

It depends.In your personal names, then there is no asset protection.The greatest asset protection is with a discretionary trust. But the disadvantage with a trust is that losses are not able to be used to offset your personal income. However this may only be a short term problem as rents will hopefully grown. Once the property is making a profit…[Read more]

I think there are a few things to consider hereWhether or not there is a mortgage you have borrowed money from your parents. If it is a loan it is returnable. So of they go bankrupt you will still have to return the money to their bankruptcy trustee. If you go bankrupt they have to chase the money from your bankruptcy trustee. Having a mortgage…[Read more]

Hi Newdaygood work,Talk to your tax advisor about your situation. It may be possible to leave it until your ppor is fully paid off – but this will also depend on limits to LOCs and products too.

hi ReginaldI don't own units myself, but would think you may have a value on your rates notice or will receive a land tax assessment notice.  Remember it is only on the land value and if there are 40 units, then each value will be very small. You may also get the land tax free threshold in some states.

There is not enough boom boom in my opinion.

Yes it would apply. because each unit owner owns part of the land.

The bank will ask for your assets and liabilities. You could not tell them and they may not find out, but this will have asset protection consequences.For loans with other banks they can see a copy of your credit report  which lists all the loans yuo have applied for. They probably wouldn't do title checks as this costs money.

No, i would advise against that. You may break the link to the borrowing of the money.Once you put money into a savings account it is no longer borrowings. So if you take money out of a savings account to invest you are investing cash rather than borrowing money. see Domjan's case. It may not be picked up, and even if it is the ATO may allow it,…[Read more]

If it is a separate loan account, then it should be ok. Just make sure you borrow straight from the loan and invest – don't park the money in a savings account/cheque account first.

Yes. Because you have a $800,000 debt. Even if they don't register you still have this debt and should declare it. If you put the full value of the property down on your assets and liabilities statement without the debt you could run into problems later on if you were to go bankrupt.Your bankruptcy trustee could argue there was no mortgage.

If you have debt on the property the new owner will also need to go on the loan.You also have to worry about bankruptcy – what if they go bankrupt?

Don't forget too, that depreciation is claimable because the asset is being run down. This means its value is constantly decreasing and will eventually need replacing.

No, it is not ideal – if the loan is non investment related you will be mixing deductible and non deduction debt.Every time you make a deposit part of the principle of the investment loan will be paid off and this will reduce your tax deductions.