There is no limit, but if you are doing this with the intention of making money then it can be taxable regardless of if it your main residence or not.

Hope you don’t believe this crap?

There was a case a few years ago in which someone with 12 properties was considered not to be in the business of property rentals.

Why do you want to be considered to be running it as a business?

Some have argued this is unconstitutional as you cannot contract where the terms of the contract are not fixed and one party can jack up rates.

I know of no book that covers asset protection for australia. I have half written one but i keep getting g side tracked so may never finish.

You should read the bankruptcy act and just dona search on posts that i have written here and at other property forums.

First step would be to issue a letter of demand.

Costs can be awarded against the unit owner but the full costs may not be recovered.

Pia software is good for forecasting. Property investment analysis.

Which property do you expect to make you the most money?

Ultimately it seems bankruptcy is what you want to protect against and the best protection for this is an appropriately structured discretionary trust that has an open class of beneficiaries and gives the trustee the power to accumulate. Seek legal advice.

But assets of a trust cannot be willed. Ie cannot be left in your will.

For family law…[Read more]

The strata corporation should just lodge a statement of claim to recover the money. Not much of a defence if money is legitimatelt owed. The property could eventually be aeized to recover the money owed.

Hi. I am a lawyer specializing in asset protection. Firstly what are you trying to protect against?

If it was a transfer under a family law settlment then it will probably be as if younwere the owner from the beginning. If it was not a family law transfer then you would have 2 different interests in the property. The fist 50% and the second 50%. They would each have different costs bases.

A tax agent or a lawyer could assist. Tax agent would generally be cheaper. Perhaps the one the does your tax return.

Vardy – no. The ATO considers this a loan for a family law settlement and that the interest is not deductible. You should seek advice on getting the relevant portions right and then split the loan. You original 50% of the loan may be still deductible though.

It is only the interest on the loan associated with the purchase of the property that is deductible against this property. So if you have ever increased the loan or used redraw the interest on this portion won’t be deductible against this property’s rent.

If you can save tax and increase borrowing capacity then it may be worth considering.

For asset protection reasons you wouldn’t want to be liable for someone else’s loan, even a spouses, unless it is absolutely necessary.

You need to seek specific legal advice on this as too many variables. Which ownership structure will also depend on the state of the property too (NSW etc).

Yes this is fairly common and it is a way to get an extra land tax threshold in some states (once).

The ultimate holding company is just a shareholder so it will be difficult for this to be dragged into any litigation if it does not own the asset where the slip occurred and where it has not contract with a tenant. However loan agreements and…[Read more]

Get a power of attorney appointed before leaving. You can make it restrictive such as to only allow the attorney to sign contracts for purchase and associated documents. Check with your lender whether they will accept loan and mortgage documents signed by an attorney. Also look into the witnessing requirements for the state you are purchasing in.