I would advise never to purchase in Thailand. I have extensive experience in Thailand and have seen many lose their money.Foreigners cannot own land, only units may be purchased, and even then it is extremely unwise for a number of reasons such as:- Political Instablity. There is a coup every 6 years on average. Look at the recent airport…[Read more]

Yes, the PIT., Will it survive an audit?There are many problems with hybrid trusts. Depend on the date of your deed and the wording the interest may not be deductible at all, or partially deductible, or maybe even fully deductible.State doesn't matter for taxation matters as it is a commonwealth tax.Best to seek advice before you invest – and get…[Read more]

Chiz,Are you confident it will survive an ATO audit?

number8Didn't think it was directed at me so no offence taken. Just couldn't see which post you were referring to.

The OSR may consider it an onsale to the nominee, I head that WA is very strict on this, but each State differs – which makes it hard to keep up with things. Let us know what your lawyer says.

number 8 wrote:
Sorry, and who are you helping?????? I can answer that , that will be yourself…….http://www.birchcorp.com.au

Who is this directed to?

Nathan_b wrote:
I exchanged recently on a few in QLD and added special condition along with finance that I have the right to change purchase details before settlement. Check with your solicitor however.

The vendor may allow this without too much drama, but please be careful in doing it as you may be assessed on stamp duty twice. You may also…[Read more]

Chiz wrote:
Ah ha. I'm still learning (as expected). Don't want to hijack this thread but do you know anything about the Property Investment Trust? (is there another thread on this subject)

Lots have changed since that book was written! There are a few old threads here about the PIT and the author of the book posted too. Mr Chan – forget his…[Read more]

ChizUnits and hybrids technically also quarantine losses. ie losses from a trust cannot be used to offset personal income (A trust is a different entity for tax). But a way around this is where an individual borrows money to buy the units in the trust and the individual claims the interest on this loan.

There are a lot of consequences that flow on from whose name goes on title.If you put it in the name of hte highest income earner you may save more tax now, but what about long term? The property will make a profit eventually (hopefully). There are also other factors such as what if that person is sued – you could lose the house, whereas if it was…[Read more]

Hi GraemeI don't know too much about the PTTs. I beleive the beneficiaries are restricted to those that would have received something if the person died without a will and the capital of the trust to eventually pass to these people when it vests – in 80 years maybe.They are not as good as a testamentary trust set up before death, but still may be…[Read more]

No need to change the will, they can be set up after death.see http://www.taxlawyers.com.au/manuals/PostDeathTrusts.htm

Thats correct, but for tax purposes it is treated as a separate entity. Trusts are required to submit tax returns etc.

re my postUsing a simple example.You have a $100,000 loan, $10,000 in cash. You pay interest on $100,000 and cannot claim this.You then buy a $100,000 property.scenario 1. use your cashYou now have 2 loans. $100,000 for the original house, paying interest on $100,000 which you cannot claim (personal use).and, $90,000 on the investment. You can…[Read more]

Maybe wait for a bit more equity to build up

For tax purposes a trust is a separate entity. So it will not affect your personal tax at all, unless you receive income from the trust.Any losses in the trust will be trapped there and cannot be used to reduce your personal income.

The Family Law courts have special powers – even discretionary trusts are not completely safe. But they are still the best form of asset protection overall. Possibly look at setting up a testamentary discretionary trust for any existing assets and for future assets there are a number of extra things you can do in for additional protection – best…[Read more]

I suggest you see a lawyer. The CGT exemption for PPOR only applies to a max of 5 acres I beleive. So possibly the best way to hold it may be a discretionary trust – but in NSW there is no land tax threshold for discretionary trusts. There is for some units trusts, but it is a bit complicated as there are also different rates for rural properties.

If you just pay cash deposit for an investment it will not be tax effective.Imagine if you had cash, then paid it into your loan and reborrowed it (using a separate loan ideally). Think of all the extra interest you could claim on your tax.

1. Yes both stamp duty and tax on the transfer of shares – assessed on market rates too.2. Yes. Transactions done with the intent to defeat creditors can be undone – no time limit. If you were to go bankrupt then the transaction could also be undone for up to 5 years if there were no intentions to defeat creditors.If you borrow on it and gift it…[Read more]