You cannot pay yourself a wage, only another entity can. If you set up a company but you own the properties how do you get the income into the company? Even if you do start a company you will be self employed so the lender will want to see the company financials.

I don’t think you will have much luck.

The lender will assume the salary sacrifice is not happening as long as it could be stopped.

Is the trust a related party? The lender will likely want to see the financials for the trust and will take it into account.

There is no contract until the offer is accepted (in writing)

Thanks Ethan, but I don’t practice property law. I am a structuralist!

in NSW try Tony Cordato (lawyer)

You probably won’t be able to borrow without an income other than rent because of the minimum living expenses the lenders will assume.

Hi Corey

Actually with something like this Part IVA wouldn’t be applied because it would fail deductibility under s 8-1 ITAA97.

You can borrow to do as you propose but the interest won’t be deductible.

Short answer is ‘no’, Well you could do it, but no tax advantage.

But you should seek legal advice asap as there may be some strategies available before the estate is finalised – avoid CGT and stamp duty possibly.

Seek legal advice about the possibility of terminating the contracts

It depend son your definition of ‘paid off’

There are 2 possibilities

A. Loan balance of say $400,000 with $400,000 cash in the offset account

B. Loan balance of $0 with an offset account (which offsets nothing)

With Option A the property isn’t paid off, but the loan is fully offset. If the cash in the offset is you personal cash, and not…[Read more]

Before spending up big like that it may be worthile spending a whole day reading up as much as you can about options. Then if you decide to do the course more of it will sink in.

Best not to park borrowed money in an offset because the interest may not be deductible when used.

If the $270k loan relates to the property purchase the interest on this may be deductible when she rents this out.

I specialise in structuring from a tax, law and loan aspects and run two businesses –
Structuring lawyers
Loan Structuring Pty Ltd

You should avoid cross in 99% of cases as there is no benefits to you.

But with 5 years to retirement you should avoid it even more. Get them uncross whenever possible.

Imagine you are nicely retired and decided to sell one property so as to get more expenses to live on. You find a buy and sell and after paying out the loan you will have say…[Read more]

It pays to do you own research doesn’t it.

Generally not.

But the contract may be defective in some way which could allow this. Best to seek legal advice.

In some states the first mortgagee needs to consent to a second mortgage bring lodged, in other states no consent will be needed.
Most major lenders will consent, but they want all parties to enter into a deed of priority so that they can be sure they will come first. I am not sure if they can refuse consent or not, but contractlly you are…[Read more]

You won’t be able to settle (if mortgaging) until the caveats are removed.

What does your solicitor say?