It is, but what was the company formed for?

And why would you want to buy in the company?

Many issues.

First determine what effect this will have on their pensions.

Then if you were to buy part of the house, what about accessing equity down the track – all owners must go on loans. If it is a rental then no PPOR CGT exemption for you and what was once fully exempt becomes partlially exempt.

Stamp duty on the transfer.

Estate planning issues.

Asset protection issues – if you default parents won't have a place to live maybe.

Perhaps getting them to assist you into a property may be less messy. parental guarantee or even a loan may work out better.

As far as I know there are no land tax exemptions In VIC for land owned by a company – even when the sole shareholders are living in the property.

If the company was acting as trustee then this is different – depending on the trust.

Thanks Richard.

Yes you could have an option to purchase part of a property. There are many ways to structure the option and strike price. could be based on an average of 3 valuations, cPI increases or some round figure. cost to prepare an option agreement would be around $2,000 to $3,000 plus disbursements and GST.

Richard – what was the record number of properties securing one loan?

Sounds like the broker is inexperienced and/or doesn't understand structuring or tax.

Yes it is normal these days. But I don't charge anything at the moment. I have been meaning to implement something to stop the time wasters but haven't got around to it – not that I get many.

You need to look at the foreign investment rules if your Singaporean friend is a non permanent resident. Depends on her/his visa.

Don't put it in the loan as that will create tax problems. Deposit = repayment and withdrawal = new loan, so you could ruin deductibily of the interest once you withdraw the money.

A look at 100% offset accounts would be the way to go

You can't do it without stamp duty, usually. You enter into a contract to purhcase and then quickly sell the same property. At settlement you organise it to all happen simultatenously. It will be a crowded table with cheques being handed around but at the end of it you should have a cheque left in your hands but no property or loan. However if the end purchaser doesn't settle you are in deep trouble.

There are a few promoters out there promoting this sort of thing – but none of them lawyers from what I can see.

How do you gift equity is what I would like to know. You can let a trustee take a second mortgage over your property, but a mortgage is only security for something – usually for borrowing money. So if you lend money to a trust that money is always your money and still available for creditors. If the arrangement is non commercial then the bankruptcy act has provisions which can unwind any such transaction.

There may be other ways to structure which are cheaper and more effective about 5 years after they are set up

I think your $20k may be better spent. Sell your property and spend the proceeds – if you are really worried. Then start again afresh structuring well from the get go.