1. Yes it would be in the written agreement you entered with the bank. Contract and/or terms and conditions booklet.

2. This would apply to any property owned by the trustee.
There would be benefits of transferring, but also costs and ongoing issues. Lots to consider.

3. The problem is your life may not follow what you propose in the private…[Read more]

An option only gives the person an equitable interest in the land. The land cannot be mortgaged, unless by the owner. What about a JV with the owner of the land.

Yes you can claim expenses associated with it. Even if you didn’t claim you would still be subject to CGT

Yes, it would be safer for mum to lend you the other 10% then to put her home on the line.

1. From a corporations law point of view you may need a new director. You shoudl also consider the terms of the loan agreement – may need bank’s consent.
2. Loss of the 50% CGT discount. No income to offset any losses (other than rent). Losses may carry forward.
3. Consider if you will actually be a non resident. There is a recent case where an…[Read more]

You don’t actually mention stamp duty on the mortgage here.

You could only claim LMI over 5 years.

Yes, they probably can charge you LMI. This is payable upfron on the loan amount. LMI and mortgages are ‘governed’ by the banks. If you want to make a complaint the first point of call would be to the bank’s complaint department and then try to get onto COSL or the credit ombudsman.

Nope

Stamp duty is imposed by the State Government.
There is stamp duty on many things such as transfer of land, mortgages, insurance contracts, LMI.

Stamp duty on land transfer is the main one but there is also stamp duty on mortgages in some states such as NSW. However there is an exemption for a mortgage to purchase residential property, in…[Read more]

It is the same principle. If you make a loss from a legitimate business or investing in houses this loss can be used to offset other income. For property it works if you have an ABN or not (because property investment is not a business ususally).

If you start offering services to others then this would be a business and you could claim associated…[Read more]

Even though you cannot claim the property expenses during the vacant time you may be able to use these expenses to reduce the CGT in the future – so keep the receipts.

Not a very good idea to invest in property in a company and certainly not a trading company. You could easily lose the property.

There is no FHOG in NSW I beleive.

Gifts aren’t taxed in Australia. – as long as it is not really income.

You should consider the asset protection aspects of receiving this gift too.

I draw up these sorts of loan agreements all the time. Would it be commercial for your husband to lend you unsecured at the same rate that he is paying? probably not, so I advise clients the lender should take security and make a small profit.

Having an ABN won’t change anything. You cannot contract with yourself and even if you could the income would cancel out the deductions. Nor could you claim more expenses just by having an ABN. If you are contracting with others you could claim expenses associated with the production of this income.

Would you need any licences?

Ben

If you have lived in A since acquistion it could be exempt from CGT. If you move into B it will always be subject to CGT but based on the period it was rented out as a % of the time held.

If you are considering moving the residence into a trust then you will need legal advice – probably by a NZ lawyer or a lawyer across both jurisdictions. You should also consider the tax aspects as well as the asset protection and estate planning aspects. THe loan will need to be discharged and applied for by the trustee, not just a refinance/

If at tax time you have incurred an expense you can claim it agains capital gains or income but nnot both,
If it was a business then there would be no CGT anyway.

no gst on residential property unless new.

No Australian institution would lend secured by overseas property because of the different jurisdictions – enforcement and taking possession of the property etc would all be under American law and therefore complex and costly.