Yeah, brokers shouldn’ advise on structures unless qualified in accounting or law, but they may be able to give some suggestions for you to research.

I think Steven from this forum is in Melbourne.

Terryw
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I’ve often thought about it. If you had enough property in the one area, you could employ someone full time. This would save costs, while greatly adding value to your property. They could do repairs, improvements, gardening, etc Could maybe even get an apprentice.

Terryw
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try http://www.lawcentral.com.au
look at the buying a house togther agreement, etc.

Terryw
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Yes, I agree with CATA, best to keep things separate. But if you have your business run thru a company, then the one trust could probably own those shares as well as the properties. Shareholders of a company are not at risk of being sued – but I know Cata may disagree with this. Best to seek legal advice.

Terryw
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A caveat would prevent them increasing the loan or changing the loan type. Lenders will do a title search and find the caveat and will not, and cannot, settle while the caveat is still there.

Terryw
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Hi Grant

Just make sure the savings account where you park the money is initially empty. Otherwise you could be mixing funds which could render you without the ability to claim the deduction.

Ask you accoutant about the recent Domjan case:
Domjan and Commissioner of Taxation [2004] AATA 815 (5 August…[Read more]

Some branch managers used to have, and maybe still do, the authority to approve loans up to a certain level of LVR and amounts.

These days, data is entered and the loan is usually approved by computer. If rejected, then it may be manually assessed. There may be some slight discretion, but not much usually.

Some lenders have LMI people actually…[Read more]

You cannot just add your name to the title. You have to tranfer ownership, ie buy = CGT and Stamp duty. But since you are a defacto you would probably be able to do this without paying CGT and stamp duty.

Better speak to a lawyer or get some free legal advice – do a google search

Terryw
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Why not just read every post on this forum and save yourself $5000?

Terryw
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I think divorce is the only way, but it may be a bit dramatic to divorce because of this – depending on how much the property is worth i guess.

But are you thinking long term? The property will only be returning a loss for a few years. As rents rise, it will start making a profit. Then if it is owned by the high income earner then you will be…[Read more]

You could do that. It would give them income in the short term, but in the long run they may be worse off. What if the property increases by $50,000 next year, or even the year after. They will have given this away in return for saving $600 or so per month.

THey have to work out if they want the short term income in return for losing any future…[Read more]

One of my real estate friends said he sold a house that was empty. The purchaser came over to the office a few days later and asked for the keys as he wanted to check something. A few days passed and the agent drove by the property to find the new owner had just copied the key and moved in, without permission, approx 5 weeks too…[Read more]

If one is your home loan, it would be better to keep them separate. Even if both are investment it would still be good to keep them separate. What if you wanted to sell one, or to move one to another bank later on??

Terryw
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Toni, it would depend on the wording of the deed. Most allow for capital gains to be distributed to any beneficiary. The beneificary would then have to declare the capital gain in their income as a capital gain.

Terryw
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Toni, many deeds will be worded in a way that allows a company to be set up at any stage and automatically be a beneficiary if one of the trustees or appointers is a shareholder or director or office holder of that company. In this case nothing will need to be changed, and no minute would be necessary.

Changing beneficiaries can cause…[Read more]

Mancityfan

Equitable interest means someone has an interest (ownership) in the property, but there name isn’t on the title. There would usually be a contract, but maybe not always. Some ways you could get equitable interest include – marriage, defacto, purchase an option, mortgage, inheritance, being a beneficiary in a trust that owns the…[Read more]

Shouldn’t make any difference if it is an offset account or not.

Terryw
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Don’t know about that Grant. I see what you mean, if someone lent you money, you would probably need to get it a bit in advance and then use it. Where do you put it in the meantime?

Better talk to your accountant about this one.

Terryw
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Steve’s book talks about cashflow, but he also got some pretty quick capital gains too. I would not buy any property without CG potential – there’d be no point.

So you have to rely on capital gains, plus savings for deposits.

Terryw
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I would say no to that.

If you take money from a LOC you are borrowing. Deductibility depends on what you have borrowed for. In this case you would have borrowed to pay money into a savings account.

You have to be careful about moving money around. I remember reading a case where the person increased their loan, and put the money into a savings…[Read more]