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.

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

If the purchaser has not taken a caveat then you may be able to get finance using both properties as security – depends on what you have agreed to. If servicing is an issue then you may be able to use bridging finance as well.

Think about tax and asset protection. You should never develop with your own money because of the risks involved. You could consider setting up 2 separate structures with A lending to B with A taking a first mortgage over property owned by B. This would allow you to avoid banks but also provide good asset protection if things go wrong. It may also…[Read more]

But this would not backdate the exemption to the date of purchase, but from now onwards. Would also need an occupation certificate to be considered a residence – probably.

Don’t forget the 50% CGT discount

Look for Vendorfinancelawyer.com.au or google Tony Cordato

There are many grounds under which you could pull out. The contract may be defective for example or a condition may not be complied with. Seek legal advice.

What if someone slipped and injured themselves? The vendors would be exposing themselves necessarily.

Bit hard to get a second opinion at this stage as they haven’t really done anything. Maybe look around first and find similar services elsewhere and then compare the two.

look for a property that suits the business…

Section 8 of Which act?

Generlly the value of an item is what the market is willing to pay = contract price. In my 14 yers of broking I have only seen about 2 purchase valuations come in higher than purchase price.

But once settled the valuers will rely more on comparable sales so you may have a goodd chance of getting a higher valuation in few months.

over lap period – cannot count 2 residences at the same time.

contract date is considered the date you become owner for CGT purposes.

for CGT event such as this it is the contract date that is important, not the settlement date.

No, because there would be some overlapping of owership period – so only one could be the main residence at any one time.

Yes. You would be able to sue the agent and possibly the attorney and vendor.

Just focus on saving into the PPOR offset.
move the $5k to the PPOR offset too.

Paying down an IP loan while you have non deductible debt will mean you are giving up tax benefits while paying more interest which you cannot deduct.

Separately look at super too.