There is less asset protection by having personal trustees. If the trustee is sued his or her personal assets are at risk. Also less flexibility with changing things – if you want to change trustees, then the title will need to be changed and theloan will need to be changed. There may be stamp duty consequences too. But it does give some asset…[Read more]

If you are using other property too, then you may get away from the LMI issue.There are other costs too as I mentioned. LawyerLoanGovt chargesCGTYou will have to do some calculations and see if by changing it over and incurring these costs then how long will it take to recoup these costs. Then you have to work out if it is worth it.Also remember…[Read more]

Stamp duty will be nearly $7,000

Here is the Duties Act WA s97Looks like the exemption is only for transfers between spouses for owner occupied properties.http://www.austlii.edu.au/au/legis/wa/consol_act/da200893/s97.html

Yes, stamp duty would probably apply from changing from JT tp JIC. You also want to change the % of ownership too. There may be an exemption between spouses. Look in the duties Act or ring up the Office of State Revenue and they should be able to tell you.At $456/$500 = 91% LVR. I think the LMI fee will be very large. They may give you a portion…[Read more]

With married couples (or defacto) most banks allow one name on title and both names on the loan. So the loan shouldn't be an issue.However, transferring a property now will be complicated. BTW which state is the proeprty in? If in VIC then you may be able to do so without stamp duty, if elsewhere then you may have to pay stamp duty on the amount…[Read more]

ABN is irrelevant. As is name on title i beleive. The GST act states GST applies to new residential property. New is defined to include something substantially renovated as well as to a new construction. It is also considered new for up to 5 years after construction.You will need specialist advice as you may need to register for GST or you may not…[Read more]

If you lived in the unit from day 1 and never rented it and didn't class another property as your main residence during this time, then it will probably be CGT free.Q2. Sounds like you are planning a profitable enterprise which may mean you will not qualify for a tax exemption at all.If you are not planning this, but it turns out that you end up…[Read more]

Have a look at the agreement you signed and see what it says. You may just have to give 14 days notice.

Work Ur Money wrote:
Thanks TerrywJust say cash builds up and you need to purchase a new family car. Would it be best to have that cash in the Offset a/c then? So for the interest sake rather then opening another a/c just to save for the new car where you could pay tax on the interestthanksWork Ur Money

Yeah, just build the cash up in the…[Read more]

If there is any chance that the property will be rented out in the future then IO is best. Having an offset will help you save the same interest. The only time I would recommend PI is if you are tempted to spend cash if it builds up in your savings account.,

Lenders will see the guarantees on your personal credit file. They will also see all the companies in which you are a director and usually they will also do a credit check on these companies too – tho in may make it hard if you are a director of 100+ companies.

You must realise the difference between the too. With redraw you are taking money out of a loan = reborrowing. If you borrow money the deductibility of interest will depend on what it is used for.Offset = separate account linked to a loan. So you can avoid all these problems.I would suggest you use an IO loan with 100% offset account attached.…[Read more]

Firstly, I would suggest you not believe anything a bank tells you without checking. They tend to be wrong!I would suggest you set it up something similar to this:1. LOC1 on the existing PPOR2. LOC 2 on the existing PPOR3. Change existing loan to IO for maximum period4. Set up a new loan secured only on the new property. IO5. Set up an offset…[Read more]

No need to use an agent. Just draw up your own lease or use one of the standard forms. Make sure you are renting at market rates.BTW you cannot claim the deductions – they trust can though. If you are running a business then you may be able to claim part of the rent as a deduction.

This is why it is a good idea to use a broker. A small mistake can cost thousands.

That would come close to false and misleading advertising..

No. assmung you mean the offset is in the personal name. If the SMSF had a loan for a property and had its own offset account then it would be okThe trustee would be breaching their fiduciary duties. There would also be legislative restrictions against it.

In the good old days you just purchased any old property and they would grow in value. These days it is much harder, but still possible.One of my mates purchased a $480k property and has had an offer of $580k even before he has settled. Without doing a thing to it.

Doesn't sound like an offset to me. Sounds like a redraw.You had better check with them whether it has a separate account number to the loan. If it doesn't then be careful because you could get into a tax mess if you were to treat it as an offset.