crazy advice. Why use a conveyancer when it is a $800,000 property and you need legal advice too.In black v garnot, the person exchanged contracts and went to settle 42 days later. The solicitor did a title check before settlement at around 10am. They then when to settlement and exchanged money and paper work. Unknown to them there was another…[Read more]

Now for the questions "Whats the benefit of a Trust against and Individual or Company buying property?"There are a few benefits with Discretionary trusts. 2 main ones:1. Trust assets are not your personal assets so if you are sued and go bankrupt the trust assets are, usually, not available to satify the debt. Shares of a company are assets is…[Read more]

Lilbigkev wrote:
Hi there,I have a question that needs to be clarified. When going for an investment home loan int the name of trust/company trustee,  Do all the beneficeries have to be on the loan, or just the director of the company trustee? Can anyone help?P.S I'm also going through the process of looking for Mortgage brokers to help us with…[Read more]

on the question "What's more beneficial to have a Company as a Trustee or an Individual as a Trustee?"A company is more beneficial for a few reasons:1) trusts can get sued. If a trust gets sued it is actually the trustee of the trust that is sued. The trustee is then usually indemnified out of the trust assets, but if these are not enough then…[Read more]

Just think of the trust as a separate person – nothing to do with you.lets use an example. Trust buys a property.Rent = $20,000 paInterest = $20,000paother costs = $10,000 paThis would mean there is a loss of $10,000. This loss has nothing to do with you as an individual. The loss stays in the trust and can be offset in the future if the trust…[Read more]

property held on trust for someone else is exempt property under the Bankruptcy Act, s 116(2) I think. So if you have opened a bank account with money in it for your kids and you go bankrupt, this money is not available to your bankruptcy trustee.Same applies to real property.But, where people can get into trouble is with lending or gifting to a…[Read more]

a caveat prevents further dealings on the property and notifys the world that someone has an interest in the property.You should be advised to put a caveat on before settlement. The law society of NSW has advised solicitors that they should recomend this or they could be negligent. If someone where to register a caveat before you settle they could…[Read more]

every year.You could always distribute to a company which would pay tax at 30%. From there it could be diverted to an individual later on with franking credits.

hi Kongthanks for the message. I am very selective about taking on clients at the moment. I used to have a signature, but have taken it off because of getting too many tyre kickers

No tax is deducted, but expenses are deducted from income to arrive at the profit or taxable income of the trust.A simple example may helpDiscretionary trust has a rental propertyRent $20,000 paInterest + deductions $15,000Profit = $5,000This profit can be distributed to beneficiaries and it then becomes income to them and is taxed in their hands…[Read more]

Matt007 wrote:
You should also be very familiar with Corporations Act s708 before advertising investments. Lest you become foul of ASIC.

Becaan has likely breached this section by advertising.

Lenders will just go on the market rent which is usually from the figure on the valuation report.

If you are running a business then you wil need to seriously consider asset protection for the ownership of this property.

Just think of the trust as another 'person'. Totally separate from yourself. any expense incurred in relation to the property is incurred by the trust. The trust therefore claims any expenses.The company is only the legal owner, not the real owner of the assets. its name appears on the legal documents such as the title, but that is its sole role.

Of course it matters.Firstly keeping things separate will buy you time. You will also have the choice of which property to sell rather than the bank.And then there are all the other issues and reasons to avoid it. CC doesn't help you in any way – just hinders.

It doesn't matter if  someone's property is used as security or not, if there is money owed, and a court judgment, that person's property could be seized and sold to satisfy the debt.

Its a lot of mucking around to change title. There will probably be stamp duty (tho may be exempt in Vic) and there will be CGT issues if it has been a rental. But by buying out a partner you may be able to free up some equity and use that towards the new property which will be more tax effective.Generally it is good to hold property separately…[Read more]

There are some ATO IDs issued for installment contracts. I forget the result, but usually CGT is payable based on the dates of the contracts.It may be easier to use an option agreement combined with a lease – and you won't find one on clear docs, you will need to have one drawn up as the strike price would (or could) be dropping as a portion of…[Read more]

Properly structured, buying an investment property should enable you to pay off your home loan sooner – the more you buy the faster it will be.

ah, not really. The ATO did one audit of about 50 low doc clients years ago and nothing has been heard about this since. None of my many low doc clients have ever been audited or asked questions by the ATO about this.