That is the biggest risk of cross coll. One of my friends went bankrupt because of it when he could have remained solvent if they had been stand alone.

Just connecting electricity may not be enough – you have to establish it as your main residence. I have the electricity connected on a house I just built – its fairly common.

There have been 2 recent cases that I know of. 1 is where the tenant complained of a rip in the carpet, the landlord didn't have it repair despite the repeated complaints and the tenant tripped injuring their back. Tenant was awarded something like $1.2milI doubt any insurance would have covered this as the landlord knew about the problem and…[Read more]

Number 8. Would you mind posting some info on how you were better off by cc?

very True Ninh.

Ask him/her about how you can borrow to pay the interest on the first property (if you have any equity) and thereby free up money to quickly pay down the new PPOR one. This will save you heaps of tax.

both good ones

Not a good idea i think, unless you use it for releasing equity.

Not a good idea in my opinion.Why not keep them on a standard IO loan, separately, and set up the portfolio on any of the equity available.

Why do you want to find out who the beneficiary is? If it is a discretionary trust then there would be more than 1 beneficiary and likely to be several hundred possible beneficiaries. And just because someone is a beneficiary doesn't mean much. They have no right or expection to receive anything from the trust – just the possibility, which may…[Read more]

a QS report will cost you about $500 and is well worth it. They will find things that you hadn't even thought about and increase your deductions and save you tax. A report or estimate made by yourself or an accountant wouldn't be acceptable anyway.I would also suggest the IO loan with the 100% offset. Try to save as much as possible in the early…[Read more]

Yes, it must be about 10 years old now. Lots have changed since then.

Do you mean they are borrowing it from a loan on their property?first, You will need a writen loan agreement. Stamp duty may be payable on this – varies from state to statesecondly you have to make sure the money is not contaminated by mixing it with other money on the way to the other party. It would be good if they could get a cheque directly…[Read more]

propertyboy wrote:

Terryw wrote:
 If the lender borrows the money and then onlends it to you they may be able to claim the interest they will pay as a deduction against the interest they receive.

Is this different to what my parents have done? Is this different to gifting? If yes how do I make sure the money my parents give me fall under…[Read more]

propertyboy wrote:

Terryw wrote:
you really do need some advice as there are serious tax consequences if you get this wrong too.If the funds are gifted then the interest won't be deductible.

For myself and my parents who have gifted it to me? Why cant my parents claim the interest?

Interest is only claimable where the money is borrowed and…[Read more]

Thanks novusI am in Sydney, but reluctant to take on new clients at the moment.

you really do need some advice as there are serious tax consequences if you get this wrong too.If the funds are gifted then the interest won't be deductible. If you borrow money from someone and rent the house out then the interest on this loan should be deductible to you. The person who lent you the money will then be receiving an income in the…[Read more]

Thanks Kong and Jonesy. Jonesy – do you need a broker or a financial planner? I can point you to either in Parramatta – probably best if you PM me please.

Banker wrote:
Back to the mum and dad property investor. If they along with the kids are the other beneficiaries of the trust. They are also the only directors / shareholders of the trustee company : – would this protect them against receivers, liquidators, bankruptcy if the family business went bust?

If an individual went bankrupt then any…[Read more]

Yes, the money loaned is still the personal asset of the lender so, like all other personal assets, it will be at risk. A way around this is to gift it – but any gift is subject to the claw back provisions in the Bankruptcy Act. Another way is for the trust to earn some money, somehow, but probably the best way is for the trust to borrow as much…[Read more]