That would not result in any tax savings at all. It is NOT possible to increase the loan and claim the interest.

The Portfolio loan is a great product, but it can be a disaster if used a certain way. Some advocate crossing several properties to get one big portilo and this can ruin retirement if a property is sold as the lender may use the funds from the sale to reduce overall debt with the bank. but the main issue is if you are using the LOC as a…[Read more]

I have only ever seen a handful of people go bankrupt. Asset protection on death is more important than life because the risk is larger that your assets will fall into places you had not intended.

You should seek legal advice as there are many issues

4. asset protection, estate planning, succession, bankruptcy, divorce, taxation
5. income tax from rent and/or capital gains tax
6. future creditors of yourself/your mum. other family members. spouses.

More than one caveat can be listed on a property. I seen one once with about 8 listed. Caveats are not a form of security itself, but notice to the world that somone has a non legal interest in the property. Generally first in gets priority over later registered caveats.

Not sure how she could ‘patent’ a system. Years ago a lawyer tried to patent…[Read more]

1. Trusts are legal relationships – see a lawyer. Only lawyers can set them up, especailly in WA – there is caselaw on this. If the property is in NSW think about trusts very carefully.

2. I have purchased many – but you are taking a gamble as you won’t see who is next door for example

3. Look on loan documents if there is more than 1 security…[Read more]

1. ok
2. loan? loans generally attract interest. Interest received is income. If it is a gift then it is not a loan. No taxes on gifts.
3. ok
4. that is a start, Many other legal issues to consider
5. it could be an issue many years from now. circumstances chage
6. asset protection for 1 thing

You really should get some legal advice as there is…[Read more]

There is no stamp duty or CGT on transfer to a beneficiary under a will or intestacy laws.

There are also many other advantages to passing via a will.

good thing you know what to look for. Most people have no idea and get ‘stiched up’!

Heaps of issues. You should both see separate lawyers.

Gifts of real property attract stamp duty (unless via a will). If you will be renting it out there are tax issues. It might be better for you to buy off her at full market value, borrowing to do so, and she can gift you the cash.

Social security issues if she is on the pension. Deeming…[Read more]

Depends what you are after. Setting up companies is legal advice – my law firm http://www.finlaw.com.au. The Loan Experts Pty Ltd is a mortgage broking firm.

If the company is controlled by the members of the superfund then no the SMSF couldn’t acquire residential property owned by the fund – only business real property.

Why it may be a good idea to use a company to own property

Companies are generally not recommended for holding growth assets in. This is mainly because:

1. No access to the 50% CGT discount
2. Income does not retain its character – e.g. capital gains incurred by the company come out to the shareholders as dividends and no capital gains.

But…[Read more]

Only if you establish it as your main residence before renting it out.

Not necessarily. Many ways to structure something like this. Will depend on a lot of things though

carefully read the loan agreements though. Not completely safe.

I have written about the benefits of using a company before. The major benefit in NSW is that a company gets a separate land tax threshold where as a trust gets no threshold. This could save nearly $7k per year in land tax which makes up for losing out in CGT when sold. Also a company can retain income and pass on franking dividends down the track…[Read more]

Only if you establish it as your main residence.

I think I have answered this question before. Doing what you are proposing won’t change the deductibiilty of interest at all. You are just shuffling money around. It is the purpose and use of the borrowed funds that determines deductibility.

If you sell a property the interest associated with a loan used to purchase that property (whether…[Read more]

Check out ss 120 – 121A Bankruptcy act and s37A conveyancing act for starters.