The Question: I was wondering if anyone had experience with a tenants in common situation where I would become a part owner of my mothers investment property and any implications that occur from this?

Lawyers deal with this sort of thing all the time.

Some of the consequences on transfer
– stamp duty for you
– CGT for her
– social security…[Read more]

No you can’t claim depreciation when sold. In fact you will probably have to add back any depreciation claimed (reduce the cost base by the DIV43 claims that you made or could have made = building depreciation).

Consider a related party sale

You can ask, but it may still be worth getting your own as the life of certain assets starts again on purchase

These would be very hard to get, so best to assume 90% LVR.

You can get LMI loans up to around $2mil.

If you renovate you will have receipts so the cost of items can be added to your schedule. If you dispose of items you may be able to scrap them and write off any remaining depreciation claims not otherwise claimed – many depreciation companies will amend your report for no charge in situations like this.

Yes you can onsell – but consider what could happen if the land goes down in value. Also take into account the GST and stamp duty costs too as well as the income tax costs.

If you have any specific asset protection questions ask away, but I can’t really answer ‘should I’ type questions with something other then ‘it depends’ because it really does depend.

example.
Should I use a trust to buy property in NSW?

This will depend on
– if it is negatively geared
– you have used up your land tax threshold already
– if you…[Read more]

I would have to go back and look, but there are many incorrect statements and much that was left out. She doesn’t mention constructive trusts or resulting trusts for instance.

Trusts are very complex and are legal relationships, I am not sure why people go to accountants for advice on trusts or asset protection as this is law – outside of the…[Read more]

the property couch podcasts are generally good – but not this one. Best to avoid it.

Get some legal advice.

A trustee possibly can be changed, but the consequences need to be considered such as:
– Who has the power to change
– control
– stamp duty
– changing titles
– reapplying for loans
– serviceability down the track
– change of company and stamp duty down the track.
– cost

No need to cross collateralise – because you can do the same thing without.

On a contract of sale for the purchase of land – but there is no duty on mortgages anymore in NSW – or elsewhere I think.

Well you might be able to sue someone for the loss you have incurred so make sure you get some legal advice.

it might, but may also be a fault of others such as the builder. you should probably consult with a strata lawyer such as gracelawyers.com.au

Why do you think the body corp is responsible for repairs to your unit?

a caveat is not a form of security. just a notice that someone has some equitable interest in the property. So you could allow a trustee to lodge a caveat, but if there is no interest this would be ineffective. You could have some sort of agreement with the trustee whereby the land is charged to the trust. This could be like giving an unregistered…[Read more]

You would simply go back to the same bank and ask to borrow more.
You could increase your loan to 80% LVR or go up to 90% LVR with LMI payable (but a credit received for the amount already paid).

Make sure you consider the tax aspects of loan structuring – you would probably want to refinance the $50k used from the LOC so that you can use this…[Read more]

It doesn’t matter about your brother – but when you moved out.
Are you claiming any other property as the main residence? If not then you might be able to claim an exemption for part of the time.

You should seek proper tax advice.

You will need to apportion the land over the 2 halves taking into account any remaining house. You will need to pay a valuer to do this as it will be unlikely the that 2 halves are identical – they may have different aspects, views, positions, neighbours etc.
Any expense relating solely to one block would be an…[Read more]