Copy and paste of my answer from the other forum

hmmm

1. 1 share – what if you want to bring in someone else later on? I wouldn't worry about losing $10 or $100.

I would be more worried about losing the assets of the trust. If the trustee is sued the assets of the trust are at risk, if these are not enough then the assets of the trustee will be exposed. This is why a company is suggested as it limits liability.

Also consider the many instances where directors can be personally liable.

2. Cash in an offset is an asset. It would be exposed and at risk. If the owner takes it out of the offset and moves it, it would still be exposed and at risk. Doesn't matter where it is.

3. If your agent hired a handyman who was not properly licenced then the agent may share some of the blame.

Brad,

If the properties are in your name at the moment then there would be no units to transfer – I am referring here to units in a unit trust, not apartments.

If CGT applies, this would be calculated at market value. You will need a valuation for stamp duty purposes.

Consider possible effects on social security paynents if applicable.

You can’t count it as your main residence until you have lived in it, usually. There is no time limit in the legislation, as long as you establish it as a your main residence and later move out it could continue to be counted as your main residence – in some instances.

But, if you build or repair a property you may be able to move in later yet still claim it as the main residence from the time you purchased it. s118-150 ITAA
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.150.html

If this section applies you must live in it for 3 months at least.

In NSW you have up to 3 months to pay stamp duty. But if you are borrowing then the lender won't settle until you have paid.

Try http://www.houseofwealth.com.au

Yes. all those scenarios would be possible.

Make sure you get legal advice if you haven't already.

Then insure asap – building only needed at this stage, but might as well consider a combo policy

Consider tax issues with the payment of the deposit too, if not too late

Get finance sorted

building and pest inspections etc

Yes. Prob calculated on the land area used by the tenant.

Also look into land tax. If in NSW you would lose the land tax exemption as well – but may still come under the threshold.

Also consider the risks associated with this, and check up on your insurance.

Depending on the structure of the ‘gift’ it could be clawed back indefinitely. There are also arguments which could be run by creditors that it wasn’t a gift but a loan etc.

Trustee will be the ones entering contracts so you have to think about future potential issues too. Subsequent purchases, loan agreements, agreements with builders etc. THen you have the negligence side, with liability if the trustee is sued.

Think about tax too. Almost always not a good idea to pay cash for something for tax reasons. Once the cash is paid it cannot later be converted to a loan. e.g you may want to access the cash to buy an ivory back scratcher. The trustee may need to borrow to get the money for you – not deductible whereas if trust B had lent the money to A then A could borrow to refinance this loan with the interest deductible. Money released back to trust B would could then lend to you interest free.