My advice to clients is to use a LOC to access equity and once it is used convert this to a term IO loan. This way you are safer from a tax deductibility point of view.

Also make sure you keep investment and person borrowings separate, in different loans.

To borrow you need income and equity. Having equity is not enough as you must be able to…[Read more]

Yes. But how strong it will be will depend on how it is set up and documented. It will also be subject to the claw back provisions and uncommercial contract provisions of the bankruptcy act and conveyancing acts.

Cheezel, yes and yes

Great post Marcos.

The ideal structure will depend on your personal circumstances and the circumstances of the properties you will be buying next. A discretionary trust in QLD may work well whereas in NSW it would cost you a small fortune in land tax each year.

Hope you made a large capital gain in that case ijc

Work out what the taxable loss was from the property each year and multiply this by your marginal tax rate for that year. This should give you what you saved in tax approx.

1. apply for a loan with the same bank against your property. separate split, LOC best from a tax perspective. But to borrow money you will need to show income enough to service the loan

2. nope.

3. yes

4. only if you actually lodge an application. some allow valuations prior to this

5. If you can borrow enough againnst your PPOR then you…[Read more]

I’ve had a 3 bedroom unit counted as a 2 bedroom because the 3rd bedroom was a converted living room. Then taking it to a different valuer it was valued as a 3 bedroom.

I’ve had a 3 bedroom unit counted as a 2 bedroom because the 3rd bedroom was a converted living room. Than taking it to a different valuer it was valued as a 3 bedroom.

A trust will have a trustee, beneficiaries and property. Not sure what you mean by ‘holding company’ but a company can be appointed as trustee and/or as a beneficiary.

The income of a trust must be distributed or the trustee will pay the top marginal tax rate. If you are the trustee or director of the trustee company you can control where the…[Read more]

Depends on the circumstances. If your main residence becomes income producing the cost base will be reset to the value at that time. When you sell it will be subject to CGT, usually based on the % you rented out.

But you may be able to claim or depreciate furniture, claim a % of all costs etc. It may help you save tax, produce more income, which…[Read more]

Trusts are legal devices and although many accountants set them up you really need a lawyer. A trust is just a relationship between various parties involving property and non lawyers cannot give advice in this regard as it is legal advice. If a non lawyer does set one up they will use a deed written by a lawyer, but you need advice to go with…[Read more]

I can see many legal and tax issues to consider. The developer will be developing land he doesn’t own. Does this mean you will be giving your land as security?

As Tony says you may lose the main residence exemption and the CGT exemption because you are now possibly in the business of developing the property. CGT may not apply in this situation…[Read more]

If that is the case probably not.

give them notice to vacate?

Count are a large group, so it would vary from branch to branch. They tend to be tax agents/accountants and financial planners which can be good.

Land tax is state legislation so it is completely different from state to state. I am not sure about WA off the top of my head.

Great tip Steve!

Wayne, its not the price of the property that determines land tax, but the value of the land. And it is $482,000 for 2016.