Hi Jennifer

Sounds like an excellent plan.

The original owner will have a mortgage on the property, but you will be paying out this mortgage, so it should not be a problem. Just think of it like you have loans with Bank A and Bank B, if the price has increased you just refinance the lot with bank C and pay out bank A and bank B.

Terryw
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Advertising fees? or cleaning expenses?

Terryw
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Sounds like your in Vic. I beleive vendors are legally require to prepare a statement consisting of various things about the property – building approvals, plans, rates, various utility connections etc.

Terryw
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Originally posted by Mortgage Hunter:
Originally posted by ptn:
Thanks guys,

I don’t want to approach an accountant or a lawyer at it will cost me $$$ just to say hello.

Thanks TerryW, you’ve given me a bit more confident in buying the family trust.

Regards
ptn

I bet you that a mistake will cost you more.

I think you are focussing on small…[Read more]

Originally posted by ownahome:
From a purely investment point of view a company is a seperate entity. This means it has its own borrowing power seperate to the directors and shareholders. When low doc loans.. LMI are invloved you can effectively double your borrowing capacity before you need to source private finance or higher rate non-LMi low…[Read more]

Originally posted by ptn:
Hi Ownahome,

Your advice is very valuable. I am still pondering between a company (expensive setup and ongoing) or a family trust. I need to know the best way forward given the following scenario:
My family of 4 + my mother in law (5 trustee) . We buy an IP using this new family trust. If for some reason, we decided…[Read more]

Originally posted by JohnSmith:
The trust owns the property. What you do with beneficiaries or trustees does not affect who owns the property, and therefore there are no stamp duty issues.

Regards
John

Inspired Finance
(02) 9944 7776

john@inspiredfinance.com.au
http://www.inspiredfinance.com.au

Thats not necessarily true. If you add or…[Read more]

Hi Bob

Tax Consequences are mainly CGT related. You can only have one main residence per time. You can only claim a property as your main residence once you have lived in it. So in this situation you could claim either as your main residence. You will have up to 6 years in which you can continue to claim the first one as your main residence and…[Read more]

Do you intend buying more? If so a trust is probably worth considering now.

Terryw
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Same in NSW I beleive!

Terryw
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Hi Celest

What is the specific course you are doing? Sounds interesting.

I was bored as well, so enroled in a Law degree, am a 1/3 of the way to being a lawyer now. Have you considered law?

Terryw
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I know of one client of has purchased using a company. He now regrets it.

Companies are best for business as liability is limited.

Appreciating assets are best held in some sort of discretionary trust for both asset protection reasons and tax savings.

Terryw
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Hi Max,

Sorry for the late reply, I am in Thailand.
Thats a LVR of around 67% needed. It may be possible to do, but time is running out. I won’t be back till next week. Maybe you could try Paramount Mortgages http://www.paramountmortgages.com.au

Terryw
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I beleive that if you can get a family court order, then the transfer can be done without stamp duty. But as you are not married, maybe this is not possible?

Terryw
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I agree with Michael, that you should get proper advice. But for what is it worth, I have two of those trusts from LAwcentral.

Terryw
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Here is a link to some tax exam questions and answers concerning the claiming of self education expenses:

http://www.taxinstitute.com.au/student/contax_7_exam.html

Terryw
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May depend on what sort of Bill you have to pay.

Terryw
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I agree with Dave, crunch some numbers. Consider also what you could do with the cash now if you sold, could you make more than the tax you would save by holding on for 8 more months?

Terryw
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John’s idea sounds good!

Terryw
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I would suggest you look at using a trust. And why not borrow more money, say 80%, and put the rest of your funds in a 100% offset account. This will result in the same interest, but you will have access to your money if you need it suddenly, or if you decide to buy another.

Terryw
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