1. solicitor
2. management fees etc
3. the rent
4. no
5. depends on your contract with them.
6. you can’t without a breach of contract or the other party agreeing.

Recycle debt by paying down the non-deductible main residence debt and then reborrow against the main residence to invest – making the interest dedctible

I still don’t see you factoring in the ability to borrow against assets outside of super.
Superfunds cannot borrow, with one exception – to acquire an asset. Any equity built up cannot be borrowed against.

Outside of super it can be.

So a equity increase of $200,000 side super may equate to $170,000 after tax. That $170k could only be used to…[Read more]

Yes

There is a lot to consider besides tax.

Some are:

Access to funds – early retirement

Accessing equity and further investment and compounding – with no CGT tax until the sale.

With super the tax rate is 15% with limited opportunities to reduce this, outside of super there is a potential to reduce tax to 0%

what about the leverage outside of super?

The tax consequences are vast and complex. An experienced tax lawyer or accountant would be needed to go over it. Expect to pay $900 per hour or more for this sort of thing. Not somethign that I would advise on because of the complexity.

Her property would be secured by a mortgage and cross collateralised with your property for your loan. If she defaults on her loan it would affect you because the lender would potentially sell her house. They would be worried about the security for your loan so they may ask you to bring the LVR in line with their lending policies – such as 80%…[Read more]

Are they experts?

If they are not lawyers then they have no business advising this. If they are lawyers then they should be able to present their arguments on why it does provide asset protection.

Yes merely registering a mortgage without it relating to a proper commercial transaction doesn’t give any asset protection, other than a smoke and mirrors approach. Someone glancing at a certificate of title may see a mortgage and just give up there and then – believe it or not this stops many.

But if there is any challange it can be easily…[Read more]

Before I answer
What exactly are you referring to?

You can’t gift equity in a property – the gift will fail unless the gift is delivered.

To register a mortgage is easy, just enter into a loan agreement incorporating a mortgage and fill in the real property act forms that go with it and lodge with the land titles office. This will then be a legal mortgage, as opposed to a equitable mortgage. BUt…[Read more]

You get my approval!

Amazing the amount of young people with new cars too

try Paul at Price Financial
http://www.pricefinancial.com.au/

Corey, i didn’t know you were licenced in tax?

I have covered the sale to a trust in this thread with 2 or 3 variations:
https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/

Listed is a link to a private binding ruling that I obtained for a client. You can click on that link and read how the strategy works and the ATO’s response…[Read more]

You can still sell your share of the property to your partner or they can sell their share to you. If the property is in VIC you still have 6 hours or so to do this without stamp duty too!.

Am I able to top up loan on my future IP (which will have lower debt) and then use this extra money to reduce my high debt on my PPOR?

Yes you are. But the…[Read more]

Are you speaking to the broker about SMSFs? If so they need to hold an AFSL or be an authorised rep.

You are probably right about the commissions on the properties. Have they disclosed how much they receive?

BTW PPOR = Principal Place of Residence

It is now referred to as the Main Residence in the new tax legislation.

There is nothing you can do in one hit to change deductibility as it stands.

However there are several strategies which I designed for clients. Some are potentially costly which could result in quicker deductions while others are cheap to implement but will have slow effect.

Here is a copy of a recent…[Read more]