Forum Replies Created
What structure is like asking for what is the best medicine
We need to know the symptoms firstTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
House of weslth sre good on the expat side. Speak to michael there in melb office.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
JacM wrote:Hi acurabotThe short answer is no you cannot get profits out of a SMSF before retirement.
Also a SMSF cannot borrow money to make improvements to a property. Even if the borrowings come from you yourself. So if you gave your smsf money to renovate, it'd be just that. A donation. And the profits would belong to the SMSF when the property is sold.
Bit more tricky tjan thst Jac.
A smsf could borrow from a member to reno but could use tje priperty as security.
And it wouldnt be a donation but anything put intp the smsf could be a contribution. If this takes one over the contribution caps it could have serious tax consequences.
Sorry for the spelling. Just travelling from laos to thailanf via car.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Whole new application I am afraid. Many things to consider too besides the rate.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thejajco wrote:NigelThe mortgage is $60k. Will it affect my credit rating here in Australia? I thought they were not international.
Thanks
John
Yes in some instances. It wont show up on your credit file but some lenders specificall ask questions around being in default.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Peanut wrote:Hi All, thanks for your responses. I haven't read Janmor Nominees yet. I will do so this weekend.
What about expanding on Terry's idea and what about I sell my half of PPOR to my wife now (gift it). Then when we move into the investment property in three years, she can sell 100% of the property back to me, I borrow 80%, then wife uses the funds to payout the investment property loan. (I still need to read the case, maybe I don't have to do this).YOu have to seek legal advice before implementing this as sounds like domonant purpose is a tax advantage
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
s0805 wrote:Terryw wrote:In vic it is possible for one spouse to sell to the other at full market value. So the other spouse could borrow to buy half the property. This would release cash which could be used to pay for the new PPOR.Hi Terry,
In VIC, does it only applied if both spouses name are on title initially, how about if only one spouse name on title for few years and then one spouse decides to see full 100% ownership to another spouse…..In that case stamp duty and CGT gets applied?
cheers
S0808
Any transfer between spouses
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I've never heard of court orders like that. Do they prevent you from entering bankruptcy, but what about someone else initiating the bankruptcy proceedings?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you have an option of the property then you will have an equitable interest in that property and could therefore probably be ok – but seek your own legal advice on this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Anthony K wrote:Hi MkBonlineNow I am going to upset some people but thats how it is sometimes. Lawyers tell you it's illegal to give legal advice if your not a lawyer – that is simply not true.
The truth is this: – IT IS ONLY ILLEGAL IF YOU CHARGE FOR IT !
This is simply not true.
Only a lawyer with a current practicing certificate can provide legal advice. In NSW the relevant legislation is s 14 of the Legal Profession Act
http://www.austlii.edu.au/au/legis/nsw/consol_act/lpa2004179/s14.html. Not charging a fee is irrelevant.Anthony, have you any references to back up your claim? When you raised this issue before I challenged you and you did not reply.
Incidently, setting up a trust entails the provision of legal advice. Only lawyers can set up trusts.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Anthony K wrote:Hi Peanut/Catalyst and AllDo not listen to the ATO BS
The last case on this was in 1987 which the ATO LOST !!!!!
Go read Janmor Nominees – this case is still THE LAW.
FEDERAL COURT OF AUSTRALIA
Re: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
And: JANMOR NOMINEES PTY. LTD. (AS TRUSTEE OF THE J. REDMAN FAMILY TRUST)
Nos. VG386 and VG387 of 1986
There are also some ATO Rulings which are helpful.
If you cant find the case email me and I will send you a PDF copy.
Anthony
From memory Janmor involved living in a home that was owned by a trustee of a trust.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think JacM of this forum operates in that area as a BA. Jacqui??
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, stamp duty, cgt and a new loan would be required.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I don't think it is the money that is the problem it is the acting as an agent without a licence
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
In vic it is possible for one spouse to sell to the other at full market value. So the other spouse could borrow to buy half the property. This would release cash which could be used to pay for the new PPOR.
Best to get an IO loan with 100% offset and store money in there. It will save you the same amount of interest as if paid into the loan and also will enable interest to be claimed should you choose to move out in years to come and then rent it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have purchased 10+ properties from buyers agents. I did this without ever seeing any of the properties and all worked out well, except for one which I purchased on the advice of a 'friend'.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That article probably describes exactly what is happening in this situation.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
What state is the current PPOR in? In one name or 2 names? Spouses?
You would probably want to borrow 105% of the purchase price of the new investment property, IO with an offset. Don't pay antying off the principal initially. Just savings and rents into the offset.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
BrentL wrote:Terryw,Yeah they are around 30m2 and a lot of the ones that I was looking at were serviced.
Ah, it will be very difficult to find a lender for these. Try CBA maybe.
There is a reason why they are cheap – no one can finance them. You have to ask yourself if these are a good investment.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Darryl,
I have been slowly writing 2 books, 1 on trusts and 1 on asset protection – my two great loves.. But it is a very slow process.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
