If you leave things in your parent's name, then you cannot claim things, only the owners. You could lend them the money and they would be able to do the development and claim the expenses though. They have lower incomes so this may result in less tax later on too.Not sure what you mean about your repayments being used to minimise CGT. CGT is not…[Read more]

Chan Naylor wrote:
Hi Everyone For clients of ours who are in NSW and its their first property we usually recommend they use our “Fixed Property Trust” which is treated similarly to a FUT except we have other benefits such as no vesting date that are more specific to properties.

Thanks for the explanation Chan-Naylor.Could you explain the abo…[Read more]

Hi GlennI am not aware of any court cases, but there are a fair few private rulings on hybrid trusts. I can dig out links to them if you wish to read more.it seems the ATO's position on these is that if there is any discretion available to the trustee in distributing income or captial gains, while units are issued, then they will disallow the…[Read more]

Hi BasilakisThey must transfer the land at market rates – or at least pay stamp duty and pay CGT at market rates. Transfer = sale.Having a trust would allow the least amount of tax to be paid by allowing the distribution to relatives on lower tax rates, but you would have to pay stamp duty to do so. So weigh up the costs and see if you will save…[Read more]

There are Aussie banks in Japan that lend for Australian properties in Japanese yen -with various conditions. NAB do it and ANZ too I believe. So it is likely USA branches of the Aussie banks will do the same.

Hi WayneBanks will still look at your employment and income (unless No/Low Doc).If you have an unencumbered property, what you could do is to get a No Doc loan to the value of 70% and then use this as deposits for the next ones.eg. $500,000 x 70% = $350,000Using $350,000 as 30% deposits on further properties would enable you to buy more than $1mil…[Read more]

Hi Jeffs118-145 of the ITAA allows people to be absent from their homes and still class it as their main residence for up to 6 years, and keep it CGT free.

it maybe possible, but unlikely I think. what could be possible is to clone the trust  – ie make a second trust exactly the same. The new trust can hold the one property and the old trust the remaining property. You can then take control of the new trust and control the property.

I agree with Richard.By redrawing or setting up a LOC  on the main home you will not be cross collateralising because the deposit will come from this loan only, the actual title will not need to be used as security for the new purchase.

often the sunset clause is worded like "contracted must be completed within 14 days of registration of titles" etc. Is there anything like this in the contract?

If you don option 2 you could not claim CGT exemption until you have lived in it. So a better way may be to live in the property initially, establish it as your main residence, and then rent it out for up to 6 years while claiming negative gearing benefits.

I purchased the product about 10 years ago. You will need to get your statements out and type every transaction into the computer. I must admit I did a few months worth, didn't find anything and then forgot about doing the rest. I then changed computers and couldn't reinstall it as you needed to send away for a new password each time and I lost…[Read more]

Company's limit liability. eg. if you were running a company and it failed, then the creditors could only come after the company assets, not your personal assets. There are some exceptions to this rule though, including if you are director and do something illegal or don't pay company tax etc. The company is a separate 'person' legally.A trust is…[Read more]

Its not hard to get finance if you are able to show tax returns and are making a profit – many do not and need to try for Low Doc or No Doc loans (20 to 30% deposit generally needed). Most banks want you to be self employed for 2 years with some accepting one year. For No Docs you only (generally) need 1 day self employment history.

You will incur selling costs and then more costs on purchasing the replacement properties – as well as not being able to claim the main residence exemption on the new ones. But if there is not going to be much growth, then it may be costing you money just to hold on. So what you probably should do is work out the costs of selling and buying and…[Read more]

1, I don't know about agistment, but you can claim the interest on vacant land if you had the intention to build on the land and rent out.2. You can only claim a place as your main residence once you have lived in it first. So if it is rented out first, you won't be able to claim the PPOR exemption during this period.3. You can only claim one…[Read more]

Enigmait

all depends on what your exact situation is and what you wish to purchase with the trust.

A discretionary trust is the most flexible with reducing tax and offers the greatest asset protection. A company would only be needed as trustee if you were going to be running risky investments through the trust with the possibility of being…[Read more]

Enigmait all depends on what your exact situation is and what you wish to purchase with the trust.A discretionary trust is the most flexible with reducing tax and offers the greatest asset protection. A company would only be needed as trustee if you were going to be running risky investments through the trust with the possibility of being sued. So…[Read more]

Hi AlexI am starting to think the same thing. why bother with property – there are so many taxes such as stamp duty, land tax etc and so much hassle with constant repairs. And I also agree that things can not continue as they have been as property and rents will become too much for people to afford. Where I live it costs about $600 pw  to rent a…[Read more]

hi MisThat is a good idea as by living in it first you may qualify to keep it as your main residence even while renting it out and thus avoid CGT for up to 6 years and be able to claim negative gearing.