It is still possible to get good asset protection while owning a property in individual names.

Since land tax is imposed by state legilsation the rules vary from state to state. So first you should decide which state you will be looking to buy in and then decide the structure.

Shanus, as a tax lawyer I can say you have done yourself a disservice here. Paying the loan down will mean you will lose deductions for potentially the next 30+ years costing you thousands!

But all is not lost. if the property is in Victoria you may be able to sell your share to your spouse or vice versa which could be done without stamp duty or…[Read more]

This is only the case where the loan is in a different name to the owner of the property.

There are a wide varieties of hybrid trusts and lending will depend on the structure and terms of the deed

In NSW there is no threshold for trusts. individuals, companies and SMSFs get the threshold whic is currently $412k.
Once you hold land exceeding this in your own name you will pay land tax anyway.

Get some legal advice on this.

Not sure what you mean, but a SMSF can only borrow to invest if the asset is held on trust.

Can you elaborate?

Jay,

Not much you can do if that is the case except:

1. earn more income
2. talk your spouse around
3. find another partner to invest with
4. speak to another broker to check the figures.

Generally lenders won’t allow an income guarantor. Security guarantee is more common – using the parents property as security.

Wayne, you will probably find the spouse will want more than you want to give. Even if sshe doesnt initially once friends start talking things change.

You will also need to consider the stamp duty implications. In most states you may be exempt on a transfer on breakdown of a marriage, but may need a court order or otherwise need to convince the…[Read more]

have you agreed upon a property split on this basis?

What are you trying to achieve?
Why do you want to consider a trust?
What do you expect the trust to hold and/or do?

for starters

Dont worry too much I never read a contract at all of the first 10 or so properties that I purchased. Crazy now when I think about it.

What a huge mistake. How could you not know the land was off the plan and how did you not read the contract, especially the special conditions? Did you get the lawyer to review it before signing?

Impossible to comment on info supplied.

It depends…

Above you say a trustee is owner. So company won’t be taxed but the trust will. Tax rate will depend on beneficiary

Profit = income – expenses.

its as simple as that.

Its the ACN that is important and it is this that identifies the company.

Considered a ‘trading name’ instead of changing the company name?

Sounds like you will be taxed on revenue account as you seem to be a developer rather than an investor. As the trust is the entity trusts are not taxed at all (if oncome distributed) but the recipient of the distribution will pay the tax.

I specialise in trusts – what are your questions?

Yes no problem, I hadn’t even read your reply and wasn’t referring to it in my post, but that makes sense.