Why not look at the source – the Tax Act:s118-145 ITAAhttp://law.ato.gov.au/atolaw/view.htm?locid='PAC/19970038/118-145'

There is nothing wrong with Hybrids if they are set up properly.In the past they were set up like this:Discretionary portion and Unit portion. The unit holder borrowed money to buy his units. He claimed the interest against his income. But because he was the highest income earner, the trustee distributed income from the trust to other…[Read more]

Hi I PeeI beleive there was a case a few years ago called Steele v Comm Taxation about the claiming of interest on vacant land. The end result was that interest and other expenses were claimable if the property was purchased with the intention of being an investment property. Do a search on the ATO legal site for "steele" and you should find a Tax…[Read more]

There shouldn't really be a problem with a HDT if the deed is worded correctly. It will need to make all of the income and CG (or a portion of it at least) go to the unit holder. After a few years the unit holder could sell the units back to the trust (and have to pay CGT) and then the trust will revert to a discretionary.The main advantages of a…[Read more]

Hi SBIf you cannot afford the repayments, then there is not much you can do other than borrow a bit extra to help with the payments – but then you are hoping on capital gains to make it viable. Having a trust is a good idea, but the overall loan sizes will be the same – or maybe more if stamp duty is factored in.

Hi C2Hisashiburi. The return seems good, but at the end of the day you will be left with a depreciating asset, and have you factored all the taxes in? ANd considered the other opportunities you could be pursuing in Australia. Cashflow won't make you rick, capital gains will. (I had  a client today who sold his property for more than 4 times what…[Read more]

I don't think you are required to fix non-essential items, especially if they are not on the inspection report as being in bad condition. Some tenants are fussy – I would probably get rid of them asap as they may not be worth the hassle.

Easy. Assuming you are not working, you could get a No Doc loan securred on your Melbourne property at 70% LVR = $350,000.You can then get a 70% No Doc on the new Sydney property of $560,000 (assuming $800,000 val) with the deposit and costs coming from the fist No Doc. The $20,000 cash you have should be used on the Sydney property to keep the…[Read more]

The most knowledgeable accountant that I have ever spoken with is Mike from http://www.guardianpartners.com.au

I think Cattleya is correct. The Family Law Court has powers that other courts do not have – including the ability to unravel trusts. However, having a trust is a good start as the other party has to find the assets before they can attack them. Getting them in a trust asap will provide some help – but probably not much.I think the only solution is…[Read more]

You can always use a hybrid trust to allow negative gearing initially. There will be some flexibility, but later the trust can be changed to a discretionary when the trust buys the units back – CGT issues too, but will be better than just transferring the property to a trust later.

????C2That works out to be a yield of around 25.6% pa. How far do you estimate the value to drop? And what is the land value?If you could borrow in Japan, it may be a marginal deal. But if you are going to be using an Aussie LOC or similar, then you must factor in the opportunity cost of what else you could have done with the money.There are also…[Read more]

With a HDT in there, St G is probably worth looking at. They have a good serviceability model too.

I wonder, Does the name of the bank start with an "N"?

No Children. They were 'elderly' too!

should be ok as long as it is being rented. but CGT would apply during htis period.

i would do a lot of research online before going to see a professional to set the trust up. http://www.lawcentral.com.au and investorone.com.au are 2 good places to start. it is good to have a bit of an idea before going in and a good idea to get it set up by a professional rather than yourself.

I was involved in a recent legal battle over something similar in NSW. One of my family members owned his property outright. His girl friend moved in for a number of years. They weren't married, and she did not contribute to the paying of the mortgage (as there was none) the rates or anything. I think there was even a lease with her paying a…[Read more]

There may be legal issues.eg. If you buy a property and ask me to make a cheque out for part of the purchase funds, I could argue that I have an interest in the property – I paid for part of it after all!

It depends on many things.Probably a discretionary trust would be good as they offer the ability to flexibiliy distribute income. But if you hold the property then they cannot allow any losses to be offset against your personal income. If you have other income in different trusts, then this income could be used to offset the losses in the reno trust.