Maybe you could partner with a third party – buying in their name?

However, if your wife found out she could possibly argue that the property is being held in trust for you.

Terryw
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Hi Barb

The Hart’s case involved a certain loan product which was classed as a scheme to avoid tax – hence Part IVA applied. It was done with the dominant purpose of obtaining a tax benefit. It was a case involving investment loans – not about borrowing business expenses.

I have been advised that it is still possible to do something similar if…[Read more]

I’m at around 30% LVR. I am just uping this a bit – values have grown too quickly to keep up with.

Terryw
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Hi Don

We are about to knock it down and build a duplex. It is a bit too old. Beleive it or not, none of the units have a bathroom – just a toilet.

Terryw
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Watch out for serviced apartments. There can be various problems such as:
– high management fees
– low growth
– difficult to get finance
– difficult to sell.

Make sure you do your homework thoroughly on one of these.

Terryw
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A few years ago, a friend of mine purchased a unit in Shanghai, right in the city. It was positive geared from day one and since then has more than doubled in value. She reckons there are still some cheap bargins out there, but you have to be careful of the area as many places in Shanghai have already boomed.

Terryw
Discover Home…[Read more]

Hi

I have a block of units in Osaka Japan – very old and run down.

ALso looking at Thailand at the moment, hopefully a block of units. Don’t worry – they are cheap.

Terryw
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Hi

I beleive each trust has to be exactly the same as the original – otherwise the ATO may deem new trusts to be established.

You had better seek good legal advice on this. Brett Davies talks about trust splitting in his newsletters sometimes – and claims a 100% success rate i think. see http://www.lawcentral.com.au

Terryw
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Hi Donald

Simon has answered, but I might just add that if you use a LOC for investment purposes it can still be promblematic. Every deposit you make is a repayment. So when you withdraw funds it will be classed as new borrowings.

If you only ever withdraw funds for investment/business purposes then the whole interest charged would be…[Read more]

Hi

You could be lending money for a fixed interest rate. eg. you lend 20% deposit for , say, 15%.

or

you could put in 20% deposit and split all costs and all income 80/20.

With the second, if you are not on title it can get messy with working out tax savings etc.

Terryw
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I’ll have a go too, although I am also not an accountant.

1) the legal owner is the company (in its capacity as trustee).
2) Company
3) Company and/or trust
4) Yes
5) ? probably trustee but I don’t think there would be GST on residential property
6) Company as trustee – company would not have to lodge a tax return, all money is thru the trust
7)…[Read more]

Hi

With a bare trust, I beleive a short document is signed and this is kept. It is not needed to be lodged anywhere. However, at tax time, it is suppsoed to be the beneficial owner who declares the income on their tax return. So if this is an investment property, then that may leave a paper trail.

Other problems include:
– what happens if the…[Read more]

Originally posted by Cata:
If someone does a search on you, it will list you as a benificary of a bare trust. Therefor your name will appear on an asset search.

CATA
Asset Protection Specialist
wardlecata@primusonline.com.au

Cata – how can someone do a search on a trust? Trust deeds are not stored anywhere or registered anywhere. Sometime…[Read more]

try http://www.lawcentral.com.au or http://www.cleardocs.com.au but be careful.

Terryw
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Hi

I think you will have a difficult time finding finance intially as you will be on probation, and then on a contract in a new job.

Have you considered buying in Thailand? You can probably get finance there if working in the country.

Terryw
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Originally posted by donaldx:
There can be serious tax implications with using a LOC. Offset is much simpler
Hi Terry,

Can you elaborate on the potential tax implications of using a LOC? I’m using a LOC for my development project, so I’m very interested to any potential problems with this approach.

Thanks,
Donald Xie

Hi Donald

eg. If someone…[Read more]

I’ve had conflicting advise from various accountants on this. Many have argued that interest on interest can be deductible if the money is borrowed for business purposes. One described it as a common practice for business to borrow money to pay for interest – to help cashflow.

Terryw
Discover Home…[Read more]

I agree with Steven

There can be serious tax implications with using a LOC. Offset is much simpler

Terryw
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Carl

I think there are problems in some states with signing a contract before the trust is established. I think WA’s state revenue office is particulary fussy about this and has charged people stamp duty twice if not done correctly. Other states SROs may be less strict in enforcing this.

If it was me, I wouldn’t be taking the risk.

As for your…[Read more]

Hi Liz

I cannot see any reason why the tax implications would change due to cross collateralisation. I agree with Tom.

Sometimes it can very dangerous listening to people working in Banks.

Terryw
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