The trustee would be providing a benefit to one beneficiary at the expense of other potential beneficiaries. This may or may not be ok depending in whether the deed expressly allows it. Living there on below market rent would be a benefit.

How did another trust gift money – this would be unusual. If it was income then the income would be taxed…[Read more]

Yes there would be issues – a non resident trust would be taxed differently to a resident trust. Residency may be decided on where the trustee is located and/or where the central management and control is. Also a company must have at least 1 resident director.

I don’t know much about this area, but Paul at PFI would.

1. Is regional a good idea? What has the growth been like in the past?
You could be going back wards if no growth, and what is the opportunity cost?

2. That would just be a general comment. But the more you look at the better a feel you would get.

3. I charge $660 for a 2 hour meeting to discuss structures, strategies from a legal, loan and tax…[Read more]

Connective is the best. I was with them, left, but have now gone back.

This is actually great thinking New Timer – well done.

You can do that, but would the LMI be deductible? I don’t think so because it was incurred because you increased the loan to buy a new PPOR – a private expense.

However, You might be able to argue that the LMI relates to the whole loan and at least part of it will be deductible.

If they were stand alone you would not have had this problem.

Borrow any extra $80k from the PPOR as a separate split.
Use your cash as deposit to avoid LMI if possible
Borrow 80% of the new property, IO with 100% offset

Quickly convert the existing loant o IO with offset if you can.

Until you move keep all cash in the offset of the existing home.
Once you move take your cash with you to the new home and…[Read more]

Depends what they are for. If the accountant is a tax agent and they relate to your tax affairs then generally they are claimable.

Plenty of tax and legal issues here. You should seek specific legal advice.

firstly does the trustee have the power to allow a beneficiary or a relative of a beneficiary to live there? If so can this power extend to under market value rent? (if you are a beneficiary she probably is too).

Does the trustee have a loan on the property? Would they…[Read more]

Actually there is a 3rd option.

3. Got to another lender that will take a mortgage behind an existing mortgage – St G are good at this, but you are already mortgaged to them, another option is ANZ possibly.

In that case you have 2 options:
1. stay put, or
2. take your $400k loan and refinance with a lender that will lend.

When cross collateralised you won’t have the second option.

You can still access equity by borrowing against a property that already is secured by a mortgage for a fixed loan.

e.g.

$400,000 loan on a $500,000. Fixed for 5 years.
Property increases to $600,000 you can keep the $400,000 fixed and take out a new split of $80,000.
The $400k loan would be have IO fixed and the $80k loan could have been…[Read more]

Bank staff are often involved with deception, or fraud. Just make sure you try to cover yourself by getting evidence in case this non disclosure blows up.

Any possibility of uncrossing the loans?

Perhaps part may be able to be broken out and refinanced – incurring a break cost if need be. These costs may be deductible and may result in lower ongoing interest as well.

Can u not just change products?

My question is, if I were to change the loan to a standalone loan account with a redraw facility, could I still do what I outlined above?

=NO

Pete

Not many people can keep on buying properties these days. Even with high incomes. I had a client the other day on $250k with 5 properties with 50% LVR. I though serviceability should be fine for another, but after checking it was very tight. We were just able to squeeze in one more.

You will probably tap out very soon.

Do you mean you have…[Read more]

If you sell in Sydney and buy up there you may not be able to buy again in Sydney.

You could use the 6 year absence rule to keep claiming the sydney property as the main residence while you are not living there – and claim everything as per normal yet not be subject to CGT.

You have basically got 3 options
1. decrease expenses
2. increase income
3. Do both

Sounds obvious!
Check that your rate on the loan is as low as possible.
Are yo claiming all deductions?
Depreciation schedule in place? Travel? Borrowing costs
Debt recycling strategy in place?
Borrowing to pay costs?
Is capitalising interest or borrowing to pay…[Read more]