Hi PeteYou would have to talk to the bank, but it may be better just to refinance and make a clean break with there no chance of missing something.

It takes time for the concept of trusts to sink in, so go slow. I am still learning after using and studying about them for 10 years.try http://www.lawcentral.com.au and http://www.taxlawyer.com.au for info and the book http://www.trustmagic.com.auThe major disadvantages are:- Losses in a trust are quarantined – ie you cannot use a trust loss to offset your personal…[Read more]

don't know anyone in Perth sorry.

CGT is a commonwealth tax – same in every state. There is no rate, but the CG is worked out and added to your other income. So if you have no income it could be low (depending on how big the gain is). Max will be the top tax rate if you are already earning about $130,000 pa income. If you held the asset for 12 months it would get the 50% discount,…[Read more]

Just because a property is cashflow positive doesn't mean it is a good buy or a good investment. Banks take into account many factors other than rental income.I should also point out that banks don't like vendor finance at all – so be careful there.

Discretionary trusts also offer significant tax flexibility and can make borrowing more flexible as well. Also are estate planning benefits.

lordoftheundead wrote:
I'm just wondering what happens when a director has given a personal guarantee and who then ceases to be a director.is the former director able to be removed and the guarantee placed on the new director? i'm sure it can be done but do banks allow this?I only ask as i'm currently an alternate director so would hope to pa…[Read more]

PropertInvestor wrote:
I will be buying my first IP. Can someone please recommend what is best, whether to buy in personal name or in trust ? Then, please provide some pros and cons of trust. Tried to read some older discussion thread but are specific to asked probs etc..

There are many advantages to using a trust and a few disadvantages. I…[Read more]

Nope, that is not true either. Trusts don't help you borrow more.

One tax implication is CGT – but you are allowed to move out of your main residence and rent it for up to 6 years and keep it CGT free.If you do move in together I would only pay them half of their rent though.

1. Tax benefits depend on the use of the property and not the security.2. Yes. You could make some improvements and save more tax.3. You would need a few different ones. IO for the investment, IO/PI for the main residence with a 100% offset account attached. An interest free credit card with points and a LOC for spare equity on the main residence.

If it will be a main residence there shouldn't be any CGT so sellingquick should save you interest. If it is an investment holding on for 12 months may save you CGT – so work out if the savings will be more than the holding costs.

Yes Paddy. You would be saving your deposits to enable u to spread them out more.

No lender will lend to you without you demonstating you can repay the loan. In the past there have been court cases where it was determined the bank reclessly lent money to someone who coudn't afford it and the judgment was they didn't need to pay the loan. So lenders have a duty to make sure you can afford to repay the loan.There are some small…[Read more]

shahabr wrote:
they are safer as the bank wont be able to touch you if something goes wrong

This is not correct at all. All lenders would require a personal guarantee. So if something goes wrong both the trust property and personal property of the guarantor will be at risk.

Hi WayneI can see where you are coming from, but imagine if you could, for example, get one of your builder mates to build a house for you with you doing the roofing etc and then selling it for a $50k profit. Surely that would beat earning $50 pw from a cashflow property that doesn't increase in value – and then what happens to your cashflow when…[Read more]

waynel2 wrote:
Hi Guys,Thanks for your detailed responses. Great to hear that loans with 80% LVR are available.TerryW – what you are saying seems to make a lot of sense.  I guess this is what Richard has touched on by saying to avoid "cross collateralisation".  If I structure it how you've mentioned then this would be easy for me to sell my P…[Read more]

Maybe up to a $1000 extra. I think there are some solicitors that advertise their specialty in this area. Perhaps the Law Society could point you in the direction of one.

This is old system title and will be costly to do the conveyancing. It is complicated and not many lawyers these days will have experience doing it – although it is still taught in law school. Basically a good root of title has to be show. ie the current owner has to show evidence of the transmission of the land back for about 80 years. It will…[Read more]

Thats the problem when using a conveyancer.. He needs to get some legal advice now.