Hi HarryI don't think that is correct. In NSW:All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and…[Read more]

shevang wrote:
I have a property investor trust (PIT) and company trustee from Chan Naylor. I do not recommend them as we are having all sorts of problems with obtaining more finance. Banks do not like hybrid trusts – let me tell you!!! Banks were picky with hybrid trusts before the credit crunch now even pickier.  Ended up getting finance for t…[Read more]

albatross wrote:
Hi TerryW and BlueHeelerCan you please tell me if the Taxation Alert at http://law.ato.gov.au/atolaw/view.htm?docid=TPA/TA20011/NAT/ATO/00001 deflates the possible benefits you have written about?Thank you for your informed input.

Hi BThat alert is specifically about unit trusts, and it doesn't look like the ATO favours…[Read more]

If i had a home loan I would put the $150,000 in that, and then reborrow it. Reduce non-deductible debt first. Then borrow it to invest into something else – using 20% deposits from this money, then borrow to buy some property and maybe put some into the share market when it bottoms – with a margin loan (with a conservative LVR).

Hi C2What makes you think negative gearing is evil? I had a negative geared property increase in value by $600,000 in just a few years. Doesn't sound evil to me!

If you were absent from the house less than 6 years and you had no other house that you counted as your main residence during this time, then you may not have to pay any CGT at all. Check with your accountant.

try this toohttp://www.bmtqs.com.au/construction_cost_calculator.htm

I think it may depend on the wording of your deed. If their is no appointor, is the trustee validly appointed as trustee? maybe not.You are playing it dangerous by not getting it fixed properly – what happens if you find out it is not set up properly after you have the property for a year or so? It could cost a lot more than $900 to fix -…[Read more]

M,Has your trust any assets yet? Maybe you can just add the appointor. If a resettlement occurs, it won't matter too much as there are no assets. But you maybe up for the initial stamp duty again. If it is unstamped, you could probably just add it in before taking it for stamping.

Tell your friend to go to one of those free legal advice centres.If the loan is owner occupied it will fall under the Uniform Consumer Credit Code and he/she will have more protection. Maybe look that up on the web (UCCC).Refinancing is very difficult at the moment if you are in arrears.

Yes, there would be a problem as who would appoint the trustee. I haven't heard of a discretionary trust without one and I don't know if it would be possible unless maybe the trustee was fixed at settlement. Points- Different trusts sometimes use different terminology, maybe the appointor is called something else.- Unit trusts don't have an…[Read more]

I don't know, but think….The vendor is the legal owner until settlement. The new purchaser has an equitable interest after exchanging contracts. Both of you have an interest and therefore should be able to be covered by insurance separately. If damage is done to the property prior to settlement then the vendor will be liable as they have…[Read more]

It is unusual to own a property in a company alone, unless it is acting as trustee. Johann – is the company a trustee?If so, the tax treatment will be totally different, the gain will be distributed to the beneficiaries and they may be entitled to the 50% discount if they are individuals – so you should pay a max of 24% tax and probably a lot less.

There is a yearly levy for carpark spaces in the CBD and some surrounding areas in SYdney. I recall hearing in the recent mini-budget that these levys had just been increased from about $800 pa to $1200 pa

You can chose which property to count as your main residence with the CGT exemption – if you have lived in both.

Very good Ajax.thanks

The second mortgage is similar to the first (the one by the bank), it is just that the first takes priority.You will need to get your solicitor to draw up the mortgage document and the loan agreement for your dad – or actually his solicitor should.The first mortgagee, the bank, will need to give permission to allow the second mortgage, and they…[Read more]

Yes, there are problems and it is getting harder to refinance from a Low Doc to another Low Doc. If you are going to full doc, there should be little problem assuming your income is ok.St George have advised, as of today, they are still happy to refinance low docs from other lenders into their low docs, as long as ABN and other requirements are…[Read more]

If they are going bankrupt, then be careful. Under the claw back provisions of the Bankruptcy act they can claim back the sale or maybe chase you for a shortfall if you buy a property under market value.

Wouldn't it be more beneficial to get as much income into the trust as possible – then you can distribute this to the lowest tax payer beneficiaries. You could just distribute to yourself anyway.