CGT probably would not apply in this situation – just income tax.

It would be difficult. A SMSF cannot borrow unless the asset is held by a custodian trustee. A SMSF trustee can borrow up to 80% of the property value but it cannot borrow to improve an asset.

You will need to seek specific legal advice on how to structure something like this.

Just make sure you get good legal advice along the way, otherwise an unexpected stamp duty bill could turn a profit into a loss.

Good on ya!

A SMSF and a member can jointly purchase property together as tenants in common. Or both could be unit holders of a fixed trust.

A Joint venture is possible but they way you described would breach the sis act.

The stamp duty will depend whether it is a dutiable transaction. If there is a contract to purchase land, an option or an assignment etc it would be a dutiable transaction and duty would be payable.

If you don’t have any of the above how will your secured you profits?

it could work in theory, but what stamp duty savings!

I would say it would be extremely difficult to find an owner to agree and it would be risky to renovate a property you do not own.

What do you want to know? I have done a few vendor financing deals before but probably would not do again.

Just terminate the contract, get a refund and have the trustee enter the contract and pay its own deposit – if you want to use a trust that is. you can lend the trust the money which it can use to pay the deposit.

Yes, I am happy to take new clients on – I charge $660 for a 2 hour consultation.

I think you might need additional or further advice.

Although you could do what you are proposing consider the arguments a trustee in bankruptcy could use against you. Research resulting trusts.

I am a lawyer and broker specialising in trusts. lending to trustees is pretty much the same as it has always been. Not difficult and not much tightening up.

But I think you need to seek legal advice as there are better ways to structure your set up where you can get both asset protection and the main residence CGT exemption.

Also watch out for…[Read more]

In the good old days people could just keep extending the IO terms on the loans. This is probably no longer practical to do and may not be even possible for most.

Where it was possible it used to help in a number of ways with the 2 main ones being:
a) building up a large cash buffer which could be used for a quicker and more tax effective…[Read more]

Yes even positive cash flow property can hurt serviceability because the notional repayment the lender takes exceeds the cash flow.

Yes. but which individual will depend on how the trust is structured.

Deepends.

No.
But you will need to prove that the property was your principal place of residence to avoid having to give back any grants and fines.

Wow, what a banker!

Of course you can have an offset account – even with no savings. Whether it is worthwhile or not will depend on the circumstances. Perhaps they meant that you could not service to qualify for the loan. Hit Corey and his team up for some advice and forget dealing with the banks direct.

Yes it could be done, no easy, but possible

You would pay stamp duty and income tax (not CGT).

Changing names is a transfer so duty and CGT will apply – (limited exemptions for main residence etc)