Apportionment needed

Borrow against the existing property a d separately borrow against the new prooerty

You will have to work out the cost base and then deduct this from the proceeds. If negative it will be a capital loss

Your other property is irrelevant for this transaction unless you are claiming that as the main residence.

Yes you will need to pay CGT if there has been a gain.

It seems you have owned it 3 years but rented it for one year, work out the cost base of the property – include expenses while living there such as interest, rates etc (third element o…[Read more]

Your options are limited as this is probably due to serviceability. Under the agreement you entered with the bank they would be entitled to retain the proceeds of any sale if they think you can no longer afford to repay the remaining loan. They have a mortgage and will only release the property if you accept this.

But see a broker quickly…[Read more]

You might want to get a valuation each (ie. 2) as the one ordering it may benefit more than the other.

Also seek tax advice from a lawyer too as it may work out better not to transfer due to a break down of a relationship, because there are CGT and income tax disadvantages.

Split the IP loan into 2, with the original loan interest being deductible and the new portion not.

Loans generally don’t effect CGT. The interest on the loan for the PPOR won’t form part of the cost base of the IP even if the IP is used as security for the loan.

I think generally avoid it if you can, especially for the main residence loan.

But it depends on your circumstances. Seek specific advice from a broker.

Just think of the trust as a separate person – John
John is buying a property so john would pay a deposit. There is no need for john to give you the money for you to pay the deposit, he should pay his own deposit.

if you pay the deposit for John you are weakening asset protection. if the deposit is to come from you you would gift it or loan it to…[Read more]

The trust bank account can transfer the deposit directly to the agents trust account for the purchase.

Money from the trust should not touch your personal bank account for a variety of reasons – but if it did that doesn’t mean it is income and tax is payable on it.

The trustee could borrow against their property. If they pass away the mortgage would probably need to be discharged so the trustee will need to either pay out the loan or find other security or other sources of funds to pay out the loan.

2. never to an existing trust, consider a new testamentary discretionary trust in the will. Powers might…[Read more]

A trust is not a legal person so it cannot enter into a contract. It is the trustee that enters into the contract and goes on title and gets the loan. Same as buying property normally really. The trust should pay hte deposit out if its funds (trustee holds these funds as trustee separately from their own personal funds).

A trust distributes…[Read more]

Financial ombudsman look after companies offering financial advice and/or products – banks, financial planners etc. It is an external dispute resoluation service for members and their clients.

strata is not a financial product and they would not be a member of FOS so they could not assist. What we have here is just a plain old civil dispute.

I dont think the financial ombudsman would have any jurisdiction over this.

You would think they would have tied to contact you.

I have a woman call me a few years ago who was actually bankrupted because she didn’t pay the strata fees for a couple of years. She was actually solvent but had some sort of dispute with the building management and refused to pay. She was served legal documents and ignored them. Next thing she…[Read more]

Actually a contract is binding when accepted.
But with property a contract would be unenforceable if not in writing. This means getting a contract with the vendor’s signature.

That doesn’t make grammatical sense!

The company is either acting as trustee or the shares of the company are owned by a trustee of a trust?

Either way you would have to supply the finnacials to a lender

I don’t know if there is anything preventing an agent from showing still as there is a chance the contract could fall over or be subject to a cooling off period.

THe law is clear. You contracted to pay a certain amount and you didn’t – you breached the contract. The other side incurred a loss due to your actions and they incurred additional costs which you should be liable for. They shouldn’t be liable for your actions.

What is there to change?

after settlement it is a bit late to do much.
Seek legal advice from a strata/property lawyer.