Refinancing may not be an option if the values have dropped. If the LVRs are still adequate it may be your best option however as you can start a new fresh IO term and also extend the total loan term to 30 years which will make the minimum PI payments lower when it does revert. but you will have to service to do this.

I charge $2750 including GST and ASIC fees to set up a trust with a corporate trustee. This includes legal advice on the structuring of the company and customising of the trust to suit your needs. Also advice on how to operate the trust so as to make sure there is asset protection against creditors. Also advice on asset protection in death and…[Read more]

– And they have the ability to transfer the units of the trust into their SMSF later on – perhaps when the property is cashflow positive.

I helped a client in a similar situation.

They had a fully paid off main residence worth $1.2mil. They bought a new main residence for $1.2mil and had to borrow about $1mil to purchase it. That meant about $50k per year in non deductible debt while they were also paying tax on the $30k positve cashflow of the existing property.

Solution was that…[Read more]

moving money around between loans won’t increase deductions, but it will result in a mixed loan and may actually decrease teh amount of interest you can claim.

Seek tax advice.

Joint owners are considered one owner for land tax purposes in NSW, so they don’t get one threshild each but a combined one.

Then if they own other property on their own their share of the joint property is taken into account so that they are not double taxed.

It is all very confusing.

This is why 2 people owning a few properties in in NSW will…[Read more]

If you enter an option agreement you would have an interest in the property and could seek out buyers of it.

Yes you could do that.

if you do this without a solicitor you will get into trouble.

Under state law a residential lease has a minimum term of 6 months…The solicitor doing your conveyancing should be able to assist with a licence to occupy for a little bit more than you are paying for the conveyancing.

That would form part of your costbase.

To work out the cost base we need to know the costs for the 5 elements described under Section 110-25 of the ITAA 1997 which are:

1. Money paid or required to be paid for the asset.

2. Incidental costs of acquiring the asset, or costs in relation to the CGT event, for example, stamp duty, legal fees, tax…[Read more]

You are buying an option on someone else’s property. They, the owners, are then finding a buyer to sell the property to. The buy would pay the owners a fee and because you have an option on the property the owners would have to pay you a fee to prevent you excerising your option.

It could work in NSW. No licence would be needed by you or by the o…[Read more]

You mean your costbase?

No, those calcs are not correct. What about the value of the property when you received the gift?

Nope that is fine.

You will need some legal advice on the trust issues – sounds like it will be messy with multiple people being invovled. How will you pass on trust owned property on death on one or more of the people.

You will also need some tax advice on the loan structure. Borrowing and parking in the offset wil create another mess and the loan interest won’t…[Read more]

Very unlikely you would be the sole beneficiary of a trust – unless it is a bear trust.

I used to be a financial planner with the Dover group http://www.dover.com.au/. I suggest you contact them for a referral as they are one of the best groups out there – no banking ownership and all of their advice is checked by head office and a law firm for sign off.

Ideally you would want to borrow to repair or improve an investment property – unless you have no non-deductible debt perhaps.

Richard’s idea is good. Perhaps you could use a related party loan to pay the tradesman and then refinance this with the bank once complete.

Ideally you would want to borrow to repair or improve an investment property – unless you have no non-deductible debt perhaps.

Richard’s idea is good. Perhaps you could use a related party loan to pay the tradesman and then refinance this will the bank once complete.

Its a Porky Pie!
Or perhaps a half truth. Rent would only be deductible if it relates to the production of assessable income – such as operating a business from home (not a home office) and then it would need to be apportioned.

He should seek specific tax advice.

There is no minimum period legiislated to make a property the main residence. It is not 6 months. Receiving a deposit will not generally be a separate tax issue. It is generally the date of entering the contracts (but not always).

What do you mean by two lots?

You would have to pay stamp duty on your purchase and the person you sell it to would have to pay stamp duty as well, so that would be 2 lots.