Land tax is an additional problem to consider – possible concessions in vic, but not NSW. Stamp duty would be the same whether trust or individual.

Loss of the land tax exemption and the CGT exemption are the major reasons to avoid using a DT. However it may be worthwhile for some people. I have many specialist medical clients, lawyer clients yet none live in a trust owned property – but I have a 'business man' who does.

Depends on the circumstances, but generally you would if it is your intention to rent the property out once it is complete, the precedent case is "Steele"

Depends how you have structured it.

If cross collateralised, the one loan will be secured by 2 properties. so you will need to gain the lenders permission to release the sold property. This generally won’t be a property if you are releasing the investment property secured by your PPOR – usually the release won’t effect the loan on the PPOR.

But imagine you have a PPOR and then use this to borrow 105% for the investment property. You then sell the PPOR. The bank will only release this security if the LVR on the investment property will be an acceptable level, such as 80% lvr. This may mean you need to pay down this investment property loan = not idea because when you go to get your new PPOR you will have less cash which means higher non deductible debt.

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Another way to use equity is to borrow from a LOC on one propertyand then use ‘cash’ for deposit and no cross collateralising.

If you sell either property there is no requirement to pay down loan if either property sold. You would need to discharge the loans on the property securing it, ie the loc on property A, but the remaining loan would not need to be reduced. For tax reasons things may be different – sale of an investment property may mean you cannot keep claiming interest on any loans kept open – depending on the circumstances.

Why should I do it?

How do I do it?

Where do I go to do it?

How long does it take to set up?

If I settle on a property one week from now and I need to change the sale of contract and loan from being in my own name to a trust, can it be done in a week?

1. A trust is a legal arrangement where A holds property for B. You may do this to benefit your family members for years to come, to make it tax effective, estate planning and to make the investment tax effecient.

2. Generally a trust deed is executed and someone called a settlor hands over some sort of property to the trustee and asks them to hold this on trust. Initial property is usually $10 for stamp duty reasons

3. Solicitor

4. 30 seconds – but you need to allow preparation time, thinking time etc

5. Best to do it before you exchange contracts. You will need to redo the loans, consider stamp duty implications, asset protection implications and deposit. Speak to a lawyer quickly as it may still be doable (not a conveyancer!). Also speak to your broker next, or maybe first.

You may live in SA, but where are the investment properties? If in Vic you could transfer without stamp duty.

I don't rebate any commissions, in fact I actually charge people who ask me to rebate. They are not the sort of clients that I want, so I am happy if they leave and happy if they stay (and pay a fee!)

However I do offer many clients extras with discounts or without charge. Good clients often get offered free legal advice or testamentary trust set ups for free etc.

No you cannot. Borrowing can only be done to acquire an asset.

Tate, it would apply to transfer of shares. Establishment date wouldn’t likely affect things – but it may not come in as it was supposed to be abolished 2 years in a row and has been pushed back. Victorian company shares can be transferred without duty i believe.

Value of shares would depend on the value of the company and this would depend on the value of the land owned by it. For CGT and stamp duty it is the market rate that counts not the transfer amount.

The holder of the shares would be the trustee of the trust. This would generally be another company or individual(s).

Disposal of shares by a trust would result in CGT and stamp duty in some states. As the discretionary trust must vest then this will result in the CGT down the track too.

If you are doing this as a business then no CGT, just income.

Parternship of 2 individuals may not be the best idea, depending on the circumstances.