Good set up, but could be improved.

Borrow 100% like Richard suggests, but I would suggest you consider buying in 1 name only. When you move out sell to the other spouse who will borrow to buy. This could potentially double the deductible portion of the loan and free up cash to pay for the new PPOR. Indirectly you will be borrowing to buy the…[Read more]

Seminars are held so they can sell things – trust deeds it seems in this case. I usually talk people out of using trusts, especially wiht the land tax issues in NSW, but once you have a few properties you may want to consider setting one up.

Asset protection is usually associated with protection from potential future creditors. An interest in a discretionary trust is not something that amounts to property so if a beneficiary went bankrupt the creditors won’t generally get access to the property of the trust. Business people are at a significant risk of potential bankruptcy, but non…[Read more]

If it is a business then probably – but hard to establish residential property as a business unless you are a builder.

Depends on many things – as long as it is not income producing, you are not renovating as a business and neither are claiming another residence and you are both living in it as the main residence then it will probably be exempt from CGT.

If you live in the properyt from day 1 you may not need to pay CGT at all.

You need advice on tax law. But a registered tax agent can advise on tax law just as a tax lawyer can. A tax agent (often an accountant) would be cheaper generally!

Thanks for the plug PHP, but I am not actually an accountant. I am a director of a registered tax agent company and also a lawyer (and director of a separate incorporated legal…[Read more]

You can get my latest newsletter here
http://www.loan-experts.com.au/article/ which has a link

or via my tax company, the book “Tax and Trusts for Property Investors” can be downloaded here:

Investment Property Accountants

thanks for the feedback. I tried to make it easy to understand. Wait till you read my trust book and asset protection book, I am making these complicated.

Trusts do give land tax advantages, asset protection but not generally borrowing power advantages (indirectly they can).

Asset protection – what are you trying to protect from? If it is…[Read more]

Many issues – which all boil down to whether you will cease to be an Australian residence for tax purposes – you may not from what you have written. if this is the case you will be assessed on your Canadian income in Canada and in Australia and any income losses can be used to offset the tax payable.

If you are a non resident then you won’t pay…[Read more]

hilander

Banks lend money al the time to people with no property, 1 investment property or more. no issues with this.

if ‘your partner buys the property and has you on title’ then you would be buying the property! It may be possible for you to get a building loan, and/or your partner to.

This is no right or wrong way, but just different ways.…[Read more]

My advice is don’t!

Yes, capital gains tax and stamp duty.

However, if it is a transfer related to a breakdown of a marriage/defacto it can be exempt from both. Your friend will inherit any CG with the property so this will be extra tax in the future and should be taken into account.

First get the finance sorted, then seek legal advice.

The only way I can think of is to stay with your job while doing business on the side for a few years.

Freedpm have you got a link? Crazy stuff

per wording. I should have said may not be such an issue.

top tax rate is currently 45% but if asset held for 12 months a 50% discount – 22.5 plus medicare which could be 2% = 24.5%
https://www.ato.gov.au/individuals/income-and-deductions/how-much-income-tax-you-pay/individual-income-tax-rates/

If a company owned the tax rate is 30% so 5.5%…[Read more]

That may not be a good idea!

Costs
tax advice
legal advice
conveyancing
discharge mortgage
new loan
CGT and
stamp duty

blackhotel

Your post is only partially true.

Company can work in many instances. A company gets its own land tax threshold in NSW and many states so this can save land tax. No 50% discount may not be an issue as company tax is 30% and CGT a max of 24% so just a 6% difference. But a company can retain income and pass it out as dividends in future…[Read more]

Dave

Thanks for the comments about the newsletter, I was planning to cover trusts and companies in future editions.

A company is a separate legal person and has its own tax return done each year and pays tax. Any directors would need to give personal guarantees and this counts, from a servicing point of view, as if you took the loan in your own…[Read more]

Sorry Dave, I didn’t realise that I haven’t got a link to them on my personal site. But they are here on my finance company site:
http://www.loan-experts.com.au/article/