There is probably no reason to separate the loans for tax purposes at the moment. It would only be necessary if you were wanting to pay one loan down independently of the other – for example if you moved into one.

It would be good to have a ‘mark all forums read’ type button too.

Thanks for that Paul. I see that one looks at the situation regarding an investor who does a joint venture with a property manager to sell the property on installment contracts. Do you know of any other ruling where the owner just sellings on their own without a JV involved?

Just thinking the ATO may regard someone doing it on their own as being in business themselves????

I would recommend a lawyer over an accountant because a trust is a legal relationship between various parties. for example what is the nature of the powers of appointment, the powers of the trustee, the rights of beneficiaries etc. An accountant wouldn’t know and couldn’t advise on this. There are also serious asset protection implications for the way it is set up and who should take what roles and how these roles should be structured. again only a lawyer can advise on this.

It will apply to you, but the laws are different depending on why and how you are transferring. You should look at the bankruptcy act s120, 121 and 121A and also conveyancing act for the state the property is in – can’t remember which section off the top of my head.

If you had just went to a conveyancer you wouldn’t have found this out.

It can be possible to get the valuation done before hand. But the lender will only lend based on valuation or purchaser price whichever is lower.

Havea read of the contract. You might be able to terminate and keep their deposit, and then resell at a higher amount. Did you get the full 10%?

Yes, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html

but only if sell one within 6 months of buying the other.

Hi Kenny,

It will come down to your negotiation skills and then the solicitor rules and regulations. Have a look at the solicitor rules VIC and Legal professional act vic.

You can challenge it, but you received it near the start and let the lawyers proceed with their work. Did you sign a costs agreement? Even if you didn’t you implied you agreed to it by continuing to instruct. But this doesn’t mean you cannot ask them to reduce fees or you could challange it