If may be difficult to borrow the money in your own name unless you use your own property as security. It is difficult to borrow in your name if the company is the owner as this will be 3rd party lending.But, assuming you can, and you charge your trust more than you are paying, then you will be making a profit and diverting money out of the trust…[Read more]

You can probably get one from lawcentral.com.auIf not, i may be able to provide you a sample agreement.

Even if there is a guarantee it would be virtually worthless. If you have to sue and the company has no assets………….

I don't think so.Furniture items would usually be depreciated and claimed against income. But i am not an accountant, so please check

To be a contract for land it has to have a few details such as price, indentity of the land (like address or maybe name and your name.

Generally if you make an offer and it is accepted then you have a binding contract. However, for the sale of land this contract can only be enforced if it is in writing. There is no requirement for a 'proper' or formal contract. Just writing on the back of an envelop could be enough to satisfy the writing requirement.

Just give a verbal offer. If accepted you can then sign a formal contract with some clauses such as subject to finance etc.

If the tenant has been there 20 years she is probably paying under market rent and is unlikely to leave in a hurry. I suggest you do some research and see what similar units are renting for and put the rent up. No use in you giving money away – this is holding you back financially and may be reducing borrowing capacity as well.

what if they are both accepted?

I think in QLD Land tax is assessed per structure still (but this could change). So search the OSR site and see what you can find out.

JadlakWhat you could do is to set up a separate LOC. Use any property that has equity, it doesn't matter which.You then use this LOC to pay for all investment expenses. ie you borrow to pay expenses such as rates, insurance, water etc etc. This will free up your cash to pay into your offset account on your PPOR. It may free up a few thousand per…[Read more]

AB59 wrote:
If you have debt levels against your IP of $295,000.00 with the Market Values of the IP of $535,000.00 @ 80% the banks would lend $428,000.00 aginst these properties. This would give you an additional $133,000.00 to borrow against your IP's which from my calculations should be able to pay off your PPOR (This is taking into account…[Read more]

Jadlak wrote:

Dan42 wrote:
I think you would have a hard time explaining to the ATO why your interest bill was $12,000 one year and $20,000 the next.

maybe not: "Because I re-financed the property to pay down my wife's investment property that she is not able to sustain due to her not working presently"or something along those lines.

What…[Read more]

That is a big, and possibly costly, assumption to make!

In most states it is possible to add a spouse to a title without stamp duty, but this is usually only for owner occupied properties sp probably won't apply. So you would be buying the dad out, basically, if you want him off and you on. This means stamp duty for you and CGT, possibly, for the dad. Also legal fees and loan exit and app fees…[Read more]

If you don't pay rent you probably cannot claim any costs such as interest. It is not a commercial arrangement.Furthermore, one of the beneficiaries of the trust could probably sue the trustee  too for breaching its fiduciary duty to invest in the best interest of the trust.CGT will be calculated on the gain less some costs – The size will depend…[Read more]

What if you make a mistake?You are making such an important purchase, why risk it?On the other hand, it could be a good way to learn.

There are a few tax rulings and private binding rulings on renting from your own trust. Search for PBR83291 for one positive one. 

I think you may need a few trusts. Maybe a company for the business and one discretionary trust for property, and ideally another one for shares.Hybrid Discretionary trusts are still around, but they are virtually useless now. To get the tax deduction against your personal income your deed will have to be worded so that you the unit holder must…[Read more]

I would be very careful.  Have a read of the Hart's case which involved this sort of thing. The High Court ruled the participated in a 'scheme' with the dominant purpose to minimise tax. There were a number of reasons for this, but one was that the loan product was marketed this way.I think it may still be possible to do something very similar,…[Read more]