guy_steele wrote:
I have been tossing up whether to setup a trust or just buy my first IP in my name.I was interested in a trust soley for the asset protection. However the problem arises where the IP is slightly negatively geared. To make +ve cash flow I would need to claim depreciation. This works fine if I own the IP in my name as the…[Read more]

Not sure why you would want to sell your PPOR, unless you were wanting to move to a new one. If your PPOR is held in a trust, you may be able to save a bit of tax initially, but you will be up for Land Tax each year and will lose the CGT exemption status on the house.HDT are not as good as they were once thought to be. But because you are self…[Read more]

Why is that a mistake? If your property in Sydney has increase in value by $40,000 and your Perth one by $110,000 (In a year too!), then this is better than buying inferior cashflow positive property and making $50 per month.

Right above you last post?

Hmm, With a trust it is the Trustee on title. So you just arrange it so that you are not trustee, but a beneificiary.

Since you lived in the property, you may be able to claim it as your main residence for up to 6 years after renting it out, and have it CGT free during this time.

Losses cannot be distributed from DTs, so if the property makes a loss, this loss cannot save you tax on your personal income. The loss will just keep rolling forward over the years until the trust makes a profit. If it is only a small loss initially, then it may still be a good idea if you think long term.

There are banks out there with no account keeping fees, even for business accounts – try Bankwest.Not all lenders charge extra fees if there is a trust involved in a purchase.There are generally no annual fees for a trust. You need to prepare a tax return, and the cost for this will vary depending on how complex you affairs are – but just…[Read more]

There are many lenders out there that do not require a guarantee from the beneficiaries – just the trustees. That way you can still retain some ownership without going on the loan. And you should be able to get future distributions of income.

Hi I believe that DG and Nick both use Chris Batten's deeds.

I am not an accountant, but look at it like this:Your Aunt is a non resident for Australian Taxation purposes, so she will not have to pay tax in Australia on her SIngapore income. But she will be earning an income from the rent. Where this money is declared will depend on whether Australia has a double taxation agreement with SIngapore – it…[Read more]

And there are various requirements the ATO imposes on 'contractors' = alienation of personal services income. You must pass various tests to determine whether you are a business or the ATO will still class you as PAYE. Claiming a loss on an IP would still be possible as a wage earner.

Mortgage insurance is a 'borrowing cost' so should be able to be claimed over 5 years.

I have a few loans going thru RAMS at the moment, and they are running a bit slow.

Different lenders are good for different types of finance, and this is constantly changing all the time. eg. Citibank are good for certain low docs at the moment because they are a special on.

What you could do is to split the loan with a portion fixed and a portion as a LOC. Most banks should be able to accommodate this.

I think it all depends on what is in the contract – this is what you agreed to. If they want to add clauses after exchange, then you have the right to reject these. 

Trust assets are in the name of the trustee – the trustee is the legal owner. With a trust it is the beneficiaries who are the real owners. The beneficiaries are not able to be searched without seeing the trust deed. So if you want to hide ownership, you need someone else to be trustee with yourself the beneficiary, or one of the potential…[Read more]

Hi MillionsYes I am still writng them, but think most are being picked up as spam!

Sounds like an option. What would be the full stamp duty if you sold to a trust? Is it worth not using a trust to save this amount?