why an accountant?

Make sure you have your loan structure right, especially with retirement coming up.

never use cash to fund a property purchase, especially if it is an investment – if you can avoid it, and you always can.

You could also keep things as is and just build on your dad’s land. You might be $100k short now, but you could possibly borrow from your dad or do a bit of owner building.

If your dad dies first you could then inherit the land. If you die first you dad gets a house. You could have an legal agreement drawn up – common in granny flat type…[Read more]

Trusts get no threshold in NSW

What about the land tax in NSW!!

Why not use the offset on IP 2 to pay off the PPOR debt now?

I would start saving cash in another offset against an IP – the one with the highest rate and/or the one in the name of the lowest income earner of you and spouse.

While doing this work out a plan. How much income do you need and how many more properties. Then buy those properties.

Meddedf

You should get some tax advice before proceeding. By borrowing and parking money in an offset account you could destroy the deductibility of interest on the loan.

An make sure you do split the main loan with the increase, otherwise you will end up with a mixed purpose loan and you will be throwing good money away.

3. No, trusts will only pay tax if the income is not distributed. If there is a loss it will be carried forward

It is still possible – but many things to consider – structure of the trust, structure of trustee, land tax, type of loan to the trust etc etc

Sounds good Richard

If Richard’s system is not for you then you could possibly get your mum to repay you what you have lent her (will only work if she was paying extra off the loan). Get the loan done and then you could gift or lend back to mum. Another option is for a family pledge type loan.

Read the contract carefully – not necessarily locked in as many things can happen such as death and bankruptcy, more problems with the building can arise too, others can also make claims on the property and take priority. The longer the settlement the more the risk of these things happening.

What state?

Seek legal advice as generally stamp duty payable again as it could be considered a subsale. In VIC perhaps not.

intention. A mere transfer is not a loan. You need to carefully document whether the transfer is a loan or a gift etc. Loan agreements can be oral, but for tax reasons they should be in writing – and other reasons too.

You can claim depreciation against the income that is generated from the asset. If this results in a loss it can be used to…[Read more]

1. Not to you. It could be deductible to the trust if you are on lending. If you are just paying the trust’s loan it won’t be deductible at all.

2. No. You dont own the property so cannot claim depreciation. The trust could claim depreciation.
If you are living overseas who is the trustee of the trust? If a company is there a resident director?…[Read more]

I doubt you will find a lender willing to allow you to go on the mortgage or guarantee the loan if you are not on title to the property.

In Vict it is possible. s44 Duties act from memory. Not in other states.

Nope.

Yes, possible.

Change of owner means new loan applications.

A very simple strategy is to have just 1 director and make sure the non director provides no personal guarantees. This may not always work due to servicing, but it would still be a good idea not to have 2 directors, but allow the other non director to give a guarantee. the non director would be liable to the bank, but not to others such as trade…[Read more]

That is one way to do it, but it may or may not be a good idea – you need some legal advice.

If the development fails you will both go down with the company.