Sounds good in theory, but what if values go down? I have a client who did this. A friend put money in the deal and he constructed 2 houses and they were going to split the profits etc. Now values have falled and they are in negative territory. luckily there was plenty of equity at the start so they can sell and have some left over, but the…[Read more]

Ally11 wrote:
Hi, I know I may be dreaming but my situation is this. If anyone can help me I would really appreciate it. I have a home on the Gold Coast worth $400000 which I still owe $225000. Even though my husband and I both work I doubt the bank would loan us more money on the equity. I desperately want to get out of the rat race but I don't…[Read more]

that is like asking which is the best food?

Companies do not receive the 50% CGT discount. So it is generally not recommended that they be used to own assets that appreciate. Look at using a discretionary trust.

BlackhotelI think 12% is very reasonable. Probably on the low side. a personal loan secured by a car is around 12%, without security it would be much higher, around 16% +. I think you should try to take some form of security over the business. You can take a charge over the company or take mortgages over equipment etc. If you do this you may be…[Read more]

It depends. You could do it in your name and then there would be CGT and stamp duty on the transfer to the daughter. Or you could use a trust and then just let the daughter take over the running of the trust when you wish – the only trouble with this is it is a trust asset and therefore no CGT exemption. But CGT won't be payable as there is no…[Read more]

Extremely risky to buy a business. So the rate should be much higher than a secured loan.

I've done a $20k cash advance before and then immediately transferred the balance to one of those idscount credit cards. It works ok as long as you factor in the cost of the cash advance and make sure you pay if off right at expiry.

If you were to go bankrupt in Australia then all of your assets would be available to creditors – this would include overseas assets such as shares.You probably could have your Australian discretionary trust own your overseas shares, but i am not sure what tax consequences there would be. Its a complex area and it  may be easier to set up a US trust.

No need to nominate it. If you are absent for up to 6 years, and you are not claiming any other property as your main residence you can rent out your house and claim all the normal costs (and declare the rent as income).

You might be able to do it all without CGT, but probably you could not claim the interest as a deduction if you did this. I don't think the  absence from main residence rule could apply.

Don't forget stamp duty is a State based tax and the rules differ from state to state.

would be better to get the finance done before exchange I think

god_of_money wrote:
TerryIs that true that in NSW, you CANNOT use financial clause in the contract?The buyer can only use the cooling off period to organise the finance and building/pest inspection etc

Hi GOMYou can put in a finance clause under as a special condition.

slallen, you may be able to find a private type lender at around 70% LVR – high rates and costs though.

hleung wrote:
I still can't understand why you couldn't  get out of the contract through the finance clause.  You mentioned earlier that the exchanging of contracts forced you to go ahead with the contract – not sure what you mean.

If it was subject to finance then she could get out of the contract, but it seems this was an off the plan type p…[Read more]

not correct.

I don't think there is a way to avoid stamp duty.

Actually it is generally safe and will probably be safe in your situation – but there could be circumstances where it is unsafe. Its best to be safe than sorry.

I would only use a loan from a major bank myself. I think RAMS use the 2 major mortgage insurers and then one smaller one as well.