I am afraid a trust won't be a 100% effective. The Family Law court has powers to look behind companys and trusts and divide up the assets as if they were the personal assets of the people. But they can still assist a great deal.I think you should be speaking to a specialist lawyer. The legal advice may be a bit expense, but better safe than…[Read more]

Terryw wrote:
Hi AnthonyPlease seek legal advice as you have just possibly committed an offence against the Corporations Act 2001 unless you have a managed investment scheme registered with ASIC.

This comment referred to a previous version of the post. not to property options. Glad to see the change.An option is a contract which gives the…[Read more]

here it iss 43 Duties Act 2000 (Vic) Duties Act 2000 – SECT 43 Marriage and domestic relationships43. Marriage and domestic relationships* * * * *(3) No duty is chargeable under this Chapter in respect of a transfer ofdutiable property from one person to another person, or from two people to oneof them, or from one person to themselves and…[Read more]

You may be able to add the LMI to the loan so there is no upfront cost – but more interest in the loan run. This could enable you to buy more or stretch your money further.On the other hand, $11k is a lot of money how much extra is the extra 10%? maybe work out what the return would be if you invested $x in the property (ie paying more deposit)…[Read more]

I think you can do it without stamp duty. Look up the Duty Act (Vic) and you should find it whether it is possible and the rules – one is, I think, that you must intend it to be your PPOR.I don't think there are any differences with selling it or gifting it in terms of stamp duty, but you may have some tax issues – unless your wife borrows to buy…[Read more]

It will be difficult probably to do all that you want. If you are on title you may lose your benefits, but if not then you can't get the loan in your name. I assume your mum can't qualify for a loan in her own name.You could set up a trust and rent to your mum – she could possibly receive rental assistance too. But Centrelink may need to class…[Read more]

Hi AnthonyPlease seek legal advice as you have just possibly committed an offence against the Corporations Act 2001 unless you have a managed investment scheme registered with ASIC.

yep. I think IO for all loans is the way to go. You can always pay extra if you want to, but have the flexibility not to.

nothing if you are on the package.

A LOC is a separate loan – but be aware it has a higher interest rate. You may be able to get away with a standard loan, IO.

Maybe the problem is that you went to a broker from a big mortgage company – an employee doing a job?

if you split you can also have the investment loan IO and the home loan PI. This will not be possible with a combined loan – and you wouldn't want to pay down an investment loan while you have a home loan outstanding or you would be losing tax avings

You would usually be paying down the principle on your PPOR loan first. Best to pay non deductible debt instead of deductible debt.Even if you pay off your home loan it is still a good idea to use IO loans. The repayments are less, meaning you can afford more properties.you can also use a IO loan with a 100% offset account attached so you can pay…[Read more]

Xodiac wrote:
Hi all,I have an investment property worth about 250k with a loan of 90k. I also have a PPOR with a loan of 240k. What I want to know is if I refinance my IP so I owe 200k on it and reduce the loan on the PPOR by the difference so it would be 130k, will I create tax issues for myself?It seems like a good way to make more of my r…[Read more]

Nothing really changes in terms of tax.

Your loan was paid down to $75,000. When you rent it out the interest on this should be deductible.You withdrew $150,000 – the interest on this won't be deductibe. (there is no interest while it is sitting in the offset, but when you take it out the interest will only be deductible if it is used for investment or business.)

Land tax is a state duty, in NSW it is administerd by the Office of State Revenue. Income Tax is a commonweatlh levy and is administered by the ATO. Each will have it own rules which may mean definitions differ.

Don't forget land tax is only on the land value too. I am not sure how the OSR treats absences from main residences for land tax purposes, but it will be different to the ATO.I think it is a good idea to live in a place initially as you will have the option of claiming it as your main residence. Sometimes your intentions change, or you may…[Read more]

Sammyh wrote:
There is definitely merit in this idea!  the main thing you have to keep in mind though is that you have to keep on renting.  As soon as you purchase another property that you choose to live in your situation changes.

Not necessarily. You can live in the new house and still claim the old one as the main residence (but you won't b…[Read more]

Suchy wrote:
Im not entirely sure but i believe you have to live in the property for a minimum of 12 months not 6 months before it is CGT exempt 

Can you back up this claim? I have never heard of anything like this.