CT

Just be aware not all accountants understand trusts, and even fewer understand hybrid trusts.

With the loans, the cheapest is often the best, but not always. Depending on what you wish to do, it may be better to avoid the non bank lenders as they have LMI on all deals, and this could prevent you from getting No Docs down the track. Plan…[Read more]

Hi CT

With a hybrid, the individual usually claims the interest, and the trust claims the rest.

With a normal discretionary, the trust claims all expenses – which is often more than the rent, so a loss results.

I think hybrid discretionary trusts are very good for negative geared property as negative gearing can be utilised. This may not be a…[Read more]

Originally posted by Rikky:
only if you rented the property out for a certain period then shifted in your self for about 6 to7 years then in some cases you may not need to pay CGT.

The other way around. You must live in the property first, then you can rent it out for up to 6 years – no need to move back in again.

See section 118.145 of the…[Read more]

If you refinance you will be hit with around $4500 in exit fees. Your rate is not too bad, so it may be better to wait a bit for some more equity to build up – generally refinances are only available up to 90% LVR. Oh, and you would be up for LMI again too!!

Terryw
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What you need to do, to enable you to buy a few properties, is to find something that grows in value quickly. Capital growth and/or improvements will help. You then use this to leverage into the next. And repeat the process.

If you borrow more money you will have to pay more interest, but hopefully the benefits will outweigh the…[Read more]

My understanding is that if your brother were to die before you, you will become the sole owner. He cannot will his share to someone else. His interest in the property will disolve at death.

Better confirm this with a solicitor. Maybe there is a way around it by you both agreeing to make wills with each other’s interests taken into account. eg.…[Read more]

Unfortunately couples can only claim one house as their main residence, not one each. I think even defactos are caught here – otherwise you could have claimed the CGT exemption too.

Terryw
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If you want to keep the unit as an investment, probably the first thing you should do is to stop paying extra off the loan, and to change it to interest only.

You want to keep all extra funds for your new home – as it is non deductible.

btw, I think you can change your username – just click on your name and you can do it from…[Read more]

You would have to pay CGT on the sale of any investment proeprty, but not your former home – usually anyway.

Terryw
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A joint venture is just two or more parties doing business together. These sorts of things are best done with somesort of document outlining the roles and responsibilies of the parties. Look out for what sort of things could go wrong, and paln for them. eg. what if one party wants out in year 3, do you sell the property, sell your half to the…[Read more]

You need to speak to an accountant, as if your trust has no other income, you cannot get negative gearing benefits – unless you are using a hybrid discretionary trust, and are borrowing to buy units in the trust.

Terryw
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Shares and business.

Terryw
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maybe also check out http://www.chrisbatten.com.au

Terryw
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I don’t know if there are any exemptions for ‘developers’. I suspect it may be transferring 50% ownership = 50% stamp duty. ie stamp duty on the transfer amount (actually this may not = 50% of the stamp duty on the total).

Terryw
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For some reading material on this, see:

Lawcentral.com.au newsletters

http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20064/NAT/ATO‘

http://www.taxlawyers.com.au/Publications/New/TR2005_D15.pdf

Terryw
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There is a possible way to do it without CGT and stamp duty.

Buy the original property in a discretionary trust.

Once the project is finished you can split the trust into two (or 4). ie a new trust is cloned. Each trust needs to be identicle with the same appointors.

Each trust will hold one (or 2) property.

Each party will then control each…[Read more]

Hi Kim
Sounds like you may have been to westpac?

You must have a hybrid discretionary trust??

Many banks have a problem with these because the title is in a name different to the loan. Some that will do it include: St G, Macquarie, Bankwest, ANZ (sometimes).

Which bank are you with?

If you hybrid is properly set up and the loan is properly set…[Read more]

Richard has outlined it clearly, but I would suggest looking at getting your valuation as high as possible.
This may cost a little bit more in stamp duty, but could save your trust more in CGT if the property is ever sold. It will also help you borrow more.

Terryw
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Yes, you can do it all yourself. I do all mine myself.

Annual running costs of a trust is just the accountaning/bookkeeping fees.

Terryw
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Theoretically possible, but if you are conducting it in a business like manner, then you cannot claim the proeprties as your PPOR (or get the tax exemptions) – or you are not supposed to. You may get away with a few though.

But if you were to claim B as your main residence, then you will lose the exemption on your main one for the same…[Read more]