Remember, there is no CG until you sell.

Yes, it is likely your will need to use your house as security and this will have a dramatic effect on future investing. Firstly your house will be at risk if your business fails, secondly the repayments for your loan will effect the amount of income you can buy in the future, and thirdly any equity in your house will be used up for the business…[Read more]

WJPerfectly acceptable to take the deposit from your LOC.

PosEnterprises wrote:
So what happens if you want to purchase a new PPOR and put the old one into a Trust so you can borrow all the available equity for a deposit on the new PPOR.  And what happens if you are not +geared on the old PPOR (Now IP). What trust would you use if you wanted negative gearing benefits etc a DT or HDT?

Hi PosYou would…[Read more]

JohnWhat about financing? I think that is the biggest hurdle. It is very hard to get finance in Japan, very hard if you are not working there. Not sure about the other countries, but I have a house in Thailand too and it is impossible to get finance there unless you have been working there for a few years and then you may get to 70% LVR.

Hi DanMy take on using a company as trustee is that there are 2 advantages:1) If the trust is sued.If the trust is sued it is actually the trustee that is sued as they are the legal owner of the assets. Most deeds have clauses saying the trustee is indemnified out of the trust assets. But in some cases the trust assets may not be enough to satisfy…[Read more]

Hi MattI am sure the Chan and Naylor PIT has been through a few stages with frequent updating. A trust deed from a few years ago would not be the same as one produced today as things are constantly changing such as Land Tax rules (in NSW) and the ATO has recently put out a few warnings on hybrid trusts/A few years ago many accountants were of the…[Read more]

rowvilleknox wrote:
Hi all,I have a family trust with my company being trustee along with myself and spouse.The trust owns my business and I have just bought  my first investment property under the trust . I have obtanied loan from CBA and ING (MYRATE) However,my spouse and myself have sign as co borrowers? Does this not defeat the purpose of…[Read more]

Westpac can lend up to 85% with no LMI in some instances

I would look at the loans. The interest on the first one seems a bit high – is it PI or IO? I would change all loans to interest only and save the extra in an offset account. You may have cross collateralised the loans. Try to avoid this if possible as it will create problems in the future.Just sit tight, try to get the rents up as high as…[Read more]

Sorry to hear about her husband's illness.Bank interest is calculated daily. So the only extra she would be paying is 5 days interest. Even if they paid cash they would still have had to pay the interest on the loan up to that point, so it won't make that much difference but they still should take it as the date the cheque was deposited.

Lenders deal with trusts all day long. They usually know about them and the various different types of trusts, but the lenders do have policies (which they seem to ignore sometimes). Many lenders are concerned about third party borrowers – loan in a name other than the title holder. If there is a person as trustee, then it will be much easier.

BI think you should probably work out the profit after taknig into account all holding expenses, buying and selling costs, any land tax, CGT tax etc, and then share it as per your ownership percentages.

In Japan buying a new house is like buying a new car. The value rapidly decreases once you have used them.My family recently sold a house which was owned by my wife's grandmother since 1947. I think the price it was sold for was similar to what it cost in 1947!We also have 2 terrace houses sitting empty in Osaka (the second biggest city). It would…[Read more]

Hi BYes, it is best to learn as much as you can before seeking advice – its all good knowledge and will save you money.For this one, since you have already purchased, I think you should just try to protect everyone as much as possible and then plan for the future ones by looking into using trusts etc.

Many people have probably received no advice, or even bodgy advice,  and will end up paying thousands more inn CGT in order to save a few hundred in income tax.

Yes, I believe so.

To un-cross your properties you can just contact the bank and ask for a variation of security. They may need to do a new valuation depending on how old the last ones were. Then if you have an LVR of less than 80% it should be easy. If the LVR is more, then it is still possible to un-cross if you pay LMI.For the construction part, most lenders will…[Read more]

Hi BBeneficial ownership is when someone else owns something for you. They are the legal owner, but you are the real owner.Adverse future borrowing consequences can be avoided if you plan ahead and try to keep one person in control. You need to limit people the number of people borrowing/guaranteeing the loan. say you needed an income of $80,000pa…[Read more]

Hi CarlinI wouldn't want to support them either. Maybe if you buy then a carton of beer they will give you the money back as a gift? ie just a paper entry. But you do have to be careful as many potential problems. I personally don't do it, but it is always good to have the option there.