Hidon't  think you will find anyone. with no security, it is extremely risky for the lender – what if you refused to repay?maybe you could look at vendor finance – where the seller can lend u the deposit.

I think there are a number of reasons they don't like inner city and they mostly come down to risk:- most are high rises, more loans in the one building is risky.- oversupply – always new units popping up- harder to sell (because its harder to get finance!)

There are a few old Tax Rulings on these. Do a search on the ATO site – probably from 4 to 5 years ago now.I read them at the time, but forget what the result was now. I think you are only taxed on the profits as it is obtained, but you should check.

Broker can also advise on how to structure the loan. Bank staff usually only advise as they have been trained – in the banks interest.

MiikeLMI = Lenders Mortgage InsuranceLVR = Loan to Value RatioI think you mean LVR above.

HiI am not an accountant, but….1) SInce you lived in the property before renting it out, you could still possibly claim it as your main residence – and sell it CGT free. But since you have purchased a new property, this changed things a bit. You can only claim one property as your main residence. So if you claim the first one, then the second…[Read more]

skuz wrote:
They don't have any non-deductible debt except a very minor credit card balance. Probably $500. If CBA doesn't have a fully transactional offset account is it possible to just have all their day to day funds be in like a streamline account and then they can deposit whatever excess they have into the offset account?

Thats not a good…[Read more]

These days it maybe cheaper to pay a loan than rent the same property.

Do your parents have any non-deductible debt first? If so they would be better off paying that down first.Certainly a IO with a 100% offset account would benefit them. They would be saving interest like you say. With the term deposit they would be getting a lower rate interest and they will have to pay tax on this interest too.

I only know of one case where a trust was attacked and that was the Richstart one, ASIC… In the Matter of Richstar Enterprises Pty Ltd ACN 099 071 968 v Carey (No. 6) [2006].If you do a search on "richstar asic" you will find heaps of interesting a…[Read more]

A number of my clients have done that – buy, get the grant, live for 6 months and then move out and rent it. Worked well – but now with low interest rates it may work out cheaper to stay in the place rather than rent it.

freelance2020 wrote:
Thanks for sharing Terry & Linar (K).The reason why I asked was because of the reduced asset protection in a trust as mentioned by Linar. Since the trust is not a legal entity, then the trustee (individual or company) will be held responsible in the event of the trust being sued. So if you establish a new trust for each new…[Read more]

Some i am trustee, others my wife is, and others company.You can use a company as trustee for more than one, but now I would probably set a new one up for each as they are only $400 to set up. I don't distribute to a company as most have no profit yet! but this may change as rates are dropping. I would set up a new company to distribute to too.

Only the owner can claim deductions. If your wife is not on title, then she cannot claim. In this sort of climate then negative gearing effects would be small so you won't be saving too much tax by just having the property in the highest income earners name. But there could be big CGT savings later on if half the CG could go to the non-working spouse.

i only use discretionary trusts.  There are no cashflow issues?????

new loan for each property. I would never have one big loan.When, or if, you get some equity, then get a LOC as well – but each property stand alone, no cross collateralisation.

Now i use one for each property.

Hi IceYou need two separate trusts for asset protection, not ease of accounting!If you lend money and charge interest you will have to declare this in your tax return as it is income. If you gift to trust A and Trust A lends to Trust B, then trust A can claim it. But the person or trust borrowing the money can claim the interest they pay as a…[Read more]

I just received a call from a company today called "Pegasys" based in Brisbane. They are supposedly an 'accounting firm' but are trying to sell some software package which works with currency trading. It seemed to be an arbitrage type system. I remember the other company "STS" were saying they were launching a foreign currency trading software, so…[Read more]

An ABN is meant for people running a business. If you back date an ABN when register you are saying that the business started at this date in the past. This may not cause problems, but you may find the ATO might query it. If you started a business why no income in the tax return etc. Nothing major.If you are registereing an ABN for a trust then…[Read more]