Better see a lawyer as trusts are legal relationships rather than entities.

Yes you need to know who the be the owner of the property and whether there will be a trust relationship before you apply for finance. It matters how you structure loans.

Depends what you are trying to protect from?

If bankruptcy you are a bit late.

Sounds like you might want the bank to lend more than the property is worth, or higher than their LVR comfort zone.
Hope you have split your loan into the 2 relevant portions. You need to for tax reasons but also because once you settle you can then take one of them and refinance elsewhere after uncrossing

Sounds like it has all been rushed into.

no no and no

No effect on deductibility of interest.
Keep on owner occupied to get a better rate.

try the duties act of the state the property is located in. Duty would apply in most states I would imagine.

would be income tax rather than CGT. no discount.

Yes there are a few tax issues – don’t do it without tax advice.

http://www.bantacs.com.au

They were never one to go to other than for their fixed rates.

But it is nasty isn’t it. Many people would be stuck and unable to move from them now because of tightening serviceability assessments

If you accidently used some of the money in the offset for personal items then the loan used to fund the offset would be mixed = part borrowed for investment and part for the private expenses. Easy to do as after a while you will forget what the offset account is in fact borrowed money. There is also a weakening of the nexus between borrowing and…[Read more]

Needs to do the impossible it sounds like!

I think you are confusing unit holders and trustees. If the unit holders are the trustees then there is no trust under trust law. Unit holders and trustees cannot be the same – an impossibility.

If you were the trustee then you would have a duty to hand over trust documents and books to the new trustee. How can you claim the receipts in your own…[Read more]

and, even though you may just need $100k now it may still be wise to borrow $300,000 as it will not cost you any extra monney in interest and you will have the facility there if you need it. These days it is getting increasingly difficult to borrow like this so get it while you can.

I am a tax lawyer and broker and licenced to advise on credit, tax and law and my advice is not to do it like this. They are suggesting you borrow $300,000 and park it in the offset account and later use it to invest. This is where the $300,000 comes from.

The problems with this are
1. You are borrowing now yet detouring and not investing…[Read more]

Any removal of funds from redraw will be new borrowings and deductibility will depend on how those funds are used.

You can’t do what you are proposing. But you may be able to borrow to pay for rates, strata etc associate with the property.

I think your understanding is lacking.

A transfer is not enough, it must be a transfer at full market value with the purchaser borrowing to buy. Otherwise the interest will not be deductible to the purchaser. Transfer will not be deemed to be done at market value other than for stamp duty calculations.

Loans must add up to the relevant interests…[Read more]

Legal Tip 15: An issue with mixed purpose loans where both portions are investment.

Tax law time.

Most readers will know the dangers of mixing loans – partial used for investment and partial for private purposes. But there is also a potential problem with mixing 2 or more investment purposes in the one loan account.

An example of a problem w…[Read more]

Many questions

You should ideally have different loans for the 2 equity loan. Other wise you will have a mixed purpose loan. This won’t be a big deal as both portions are deductible, but there would be issues if the owners of the new property are not in the same names and % as the equity loans. Another issue arises when one of your properties is…[Read more]

I have seen spouses who have transferred for no consideration. Result is a large loan with very little deductible.

Tax and legal advice is essential, Part IVA tax act considerations too.

A SMSF can do a sub-division one way with borrowings – through a unit trust with one or more unrelated parties with the SMSF not controlling the trust.