HiYes you could get a LOC on your 2 bedroom unit and then pay cash for the new one. That would keep the new one unencumbered – you could always mortgage it later.If you are going to live in the new unit, then the interest on the loan will not be deductible. And since your existing unit has no debt, if you start renting it out it will be positive…[Read more]

LVR is just loan divided by value.So if you loan of $630,000 is 95%, the value must be around $663,158

HiI think the GST will be on the full sale price, but you should be able to claim a refund of GST on the materials you purchase for the house.Don't think you can avoid GST unless it was your intention to hold onto the properties long term.There are some good documents on this available at http://www.bantacs.com.au

You will have to pay stamp duty on the market value, so if the house being removed reduces the value then it may save you a  few bucks (it could increase the value too, depending on how good the house is).Other than this, there is not real way to reduce stamp duty other than leaving it in their names – maybe you could do some sort of JV?

StewarYou haven't worded that very well, so it is unclear what is happening.Is company A going to buy a unit (a flat) is units in a unit trust?Is Mary etc buying shares in the company or is she buying a percentage of a property that the company is selling?

StumpCam wrote:
Alex, you can claim the FHBG, but it would be best to do all that through your solicitor to make sure it's all done properly. You can also rent out your PPoR while you are living in it, and still keep your CGT free status for six years. It may be better to start living there by yourself for a month to establish it's credentials…[Read more]

If your trust owns the property then it has to claim the deductions. Losses from a trust cannot be offset against personal income.A way around this is to use a unit trust or a hybrid trust and to borrow in your personal name to buy the units. This allows negative gearing in a trust, but the trusts will be restricted as far as flexibility to…[Read more]

It may be possible, but you will need specialist advice. The ATO has introduced measures to stop people doing what you are describing. They call it the 'Alienation of Personal Services Income'. There are various rules to overcome. If it is an overseas company, then there may be opportunity for you to set up an entity overseas so that you could…[Read more]

you could amend the deed, but that will cause a resettlement as crj mentioned. That means the existing trust comes to an end and a new trust is formed which is the same as the old trust selling everything to the new one = stamp duty and CGT. So you will want to avoid that at all costs.Looks for ways around it. eg, you are mentioned so it may also…[Read more]

The only reason to borrow to buy would be so that you could afford a few more properties.  I think it would be pointless to have, say, $300,000 sitting in an ING account earning 7% while you borrow $300,000 from ING at 9%. It may only work is you have a non-working spouse who could earn interest on your money and pay little tax.

I think you only need to live there to qualify for the grant. Taking a boarder should not matter with the OSR, but it will matter with the tax man. You will lose the CGT free status of your residence – or the part that you rent out.

I think Richard meant 'beneficiary'. It wouldn't matter who the trustee is as the trustee's role to to determine the distribution, it is the beneficiary that has to pay the tax. Having a company as trustee who help as it would look less like a blatant scheme to avoid tax. The people at the ATO are not only handsome, they are smart so it would be…[Read more]

I am pretty sure St G require an ABN, not sure about the GST

sounds feasible to me – with limited knowledge of super.

I doubt your employer could pay your trust unless it did some work for your employer. Maybe it did?

Can be much harder to get finance in the smaller towns.

Some tips:- get a part-time job now, build up some history and then go full time immediately after finishing school – you may be able to qualify for the loan straight away if your income is sufficient.- get a cheap place to start off. COnsider getting the FHOG and living in it 6 months, then moving out and renting it while you live at home. It can…[Read more]

GST is very confusing isn't it! I think GST only applies to residential properties if they are new – ie being sold for the first time, otherwise they are exempt.BTW, there are a lot of good articles on GST, CGT etc at http://www.bantacs.com.au

I would say that you probably could claim them – but only to the extent the tools were used in money making activity. Depending on the cost you may be able to claim some outright, with others depreciated.

In that case, maybe a company trustee is a good idea. Each partner will still be liable for the whole loan though. However if one wants to get out of the deal, it may be easier to let then leave without changing title deeds etc.