Yes it is just like you are borrowing in your own name.

Commercial. Substantially renovated property. residential in some instances can all be subject to GST.

If the property is residential housing, not new, then GST probably won’t apply. Best to ask the vendor to remove the clause if that is the case.

Yes a lawyer can advise on this.

I have read that book and found it so full of holes it is not funny. The author doesn’t appear to be a lawyer and completely misses many areas that need considering while making mistakes various aspects that she does mention. I wouldn’t recommend it.

1. contract generally. If you have contracted just to buy land than generally the land price. If it is a house and land package then the price of the house and land.

2. stamp duty and tax by yourself and stamp duty by the new purcahser too

Seek legal advice

If the property is subject to GST then you would have to pay the vendors 10% extra. an extra $50k in your example possibly.

You had better seek legal advice before signing this.

actually I think you can almost unscramble an egg – I heard a recent story about scientists being able to unboil a hard boiled egg.

http://www.popsci.com.au/science/scientists-figure-out-how-to-unboil-eggs-,399671

If you can sell and make money then it may be worth considering, but there is a fair bit of risk involved. What if values drop and you cannot sell for example.

you can’t unscramble an egg.

Money paid into the loan cannot be unpaid (well it can be but the tax consequences cannot be undone).

If you want to reuse that $20k you should split the loan into the 2 portions = $20k and the other. Don’t simply redraw it first.

Once split you can then redraw the $20k and use it for either a private expense, with…[Read more]

I think you probably couldn’t claim the interest until the property is sold.

And don’t forget the margin scheme may apply.

1. GST would generally be calcuated on the sale price of the property while it is new.
There may GST inputs you can claim.

2. Depends on the circumstances. If your intention is to build and sell then the interest would be a capital expense.

totallu different

When you pay money into a loan you are paying down that loan. When you redraw money you are borrowing it.
Tax deductibility depends on what the borrowed money is used for.

So if you temporarily pay money into an investment loan when you redraw that money the interest on that portion of the loan will only be deductible if the…[Read more]

Transfer to a trustee or a declaration of trust with no transfer will result in both stamp duty and is a CGT event. There are also asset protection consequences which will vary depending how you do it.

In short you would have the following costs:
legal advice
conveyancing
loan exit fees and mortgage discharge
trust set up
stamp duty
CGT
new loan…[Read more]

What is most common is not always the best option.

Tenants in common equal shares
Tenants in common unequal
Joint tenants

these are the most common. But you may wish to consider a few other options such as single ownership with loans between yourselves as well as the banks.

eg. $100,000 property in your name.
$80,000 loan from ANZ
$20,000 loan…[Read more]

Yes there will be tax issues, a few in fact, if you borrow money and deposit that money into the offset account. Don’t do it without tax advice.

Stamp duty will be at market value regardless so will CGT. There are various legal issues with paying undermarket value so it may be worthwhile paying market value and for them to make a gift back to you if they choose. This will have many advantages if you were to later rent the property out.

If you do choose to pay a value before market most…[Read more]

Basically a property is considered ‘new’ for 5 years and GST is chargeable on the first sale of new property.

No its not deductible at all as it is a capital expense (can be used to reduce CGT).

Serviceability will be increased for the 4 people as a group, but if one of the persons wants to buy something on their own separately then they will be assessed on 1/4 of the rent, but on the full debt. THis will hurt their serviceability.

Also all 4 going separate may result in a similar borrowing capacity overall compared to 4 together,…[Read more]