Yes, that is exactly what happens.You can't always have your cake and eat it too!If that happens you can add a person or substitute a person. Usually this can be done without having them to be a director. A shareholder, or beneficiary of the trust could offer a guarantee, for example.

There is not reason to refinance to access equity. All you need to do is set up a new split.Don't listing to the broker if he is suggesting cross collateralising the loans. This will create problems in the future.What I would do is to put your savings into your PPOR, then set up another split on this loan.Set up another split on the loan on IP…[Read more]

Hi RyanI just spent 20 min typing a reply, and it disappeared!in Summary, …..The director of a company can be liable for company debts in a few instances, such as company tax which isn't paid, debts incurred while the company was insolvent, or some other illegal acts. Generally the buck stops at the company. It is a legal person separate from…[Read more]

I beleive so. You can claim loan fees over 5 years or the term of the loan if it is shorter. If you borrow to pay for fees related to an investment loan it should be deductible.

Yes, an entity should be created before it is able to enter into a contract. I think there are exceptions for promoters of companys who can enter into contracts before the company comes into existance, but you don't want to risk being charged stamp duty twice (once on your signing and then on the deemed transfer from you to the company).Units are…[Read more]

The safest structure is a discretionary trust with a corporate trustee. There is a chance that a trustee could be used and be liable, in some cases, so one property per trust is the safest.But you need to weigh up the risk with the cost too. Having one property per trust is going to cost you a fortune and is going to be a nightmare to manage if…[Read more]

Tax variations won't assist with the banks as most have their own forumulars and take this information into account anyway.

Well, if you think of it from the other side, if someone causes you can injury then you should be compensated for that injury.If you want to be scared, read this court judgment Muir v Hume  [2003] QSC 191http://archive.sclqld.org.au/qjudgment/2003/QSC03-191.pdf

When you use the equity in property A just think of it as borrowing from property A to fund property B.

I think you will need RE qualifications to manage property. Maybe there is another job she could do? (not bookkeeping either unless she is a registered Tax Agent or registered bookkeeper under the new Tax Agents Act)

However, It may be kept open if you have enough security in another property.

It may not be necessary to transfer the proeprty to a trust as asset protection can be gained by other methods and a structure can be set up to maximise tax savings as is too.

So pointers:- NEVER run a business from a trust that owns assets – if the business fails the assets will be at risk.- Probably best to use a Pty Ltd company for running the business with the shares of the company owned by a discretionary trust.- A business cannot be trustee, only a person or a company. You would get more asset protection by having…[Read more]

There is not one book or website which covers the lot. Probably The Trust Structure Guide is the best from a taxation point of view:http://tsg.taxinstitute.com.au/If you want the legal aspects then a good text book from a University Law course is worth getting -2nd books from the unis are very cheap. eg Jacobs' Law of Trusts in…[Read more]

Trust assets are separate from personal assets. So if you were to go bankrupt they are not treated as your own – with a few exceptions such as if you transfered a property you owned to the trust with the intention to defeat creditors etc.

JAckINsurance is good, but it won't cover every thing. Imagine if there was a repair that you knew about but didn't get fixed despite repeated warnings from the tenant.

May I should elaborate.if you are sued you may have to pay some one a sum of money. If you don't they have a few options available such as having your assets seized and sold or being bankrupted.Assets which can come under the control of the bankruptcy trustee or be seized and sold includs all sorts of property such as land, real property, cars,…[Read more]

Because units are property.

It depends on how valuable the properties are. And in some states there is no stamp duty on a trust deed – so they are very cheap to set up, (no stamp duty in QLD i beleive, it is $550 in NSW now)

Trustees can get sued. Usually the trustee is indemnified out of the trust assets, but if the trust assets are not enough then the personal assets of the trustee are at risk. So if you are trustee and the trust is sued, you could lose your house. So it is better to have a company that owns nothing as trustee.Having 1 director reduces risk in 2…[Read more]