If there is a subject to finance clause and you notify the vendor before the end of that clause date then you may be able to get out of the contract, but this will depend on the wording. You may have to provide proof of finance with ANZ being rejected for example.

What is better tax wise will depend on time – so have a horizon to work things out.

Think of a lot of what ifs…

And tax is not the only thing to consider, maybe it is a minor thing.

If they are paying anymore than their share of food and ulities then it is rent and declarable. You will also partially lose the CGT free exemption.

Don’t think this is the case. If you breach an agreement someone can take you to court and if you lose a judgment will be issued against. If you don’t turn up then a default judgment will be listed too. Once that occurs you may be able to pay off the judgment debt by installments.

It could be there was a contract in place.

I would suggest you write to the company and dispute the bill and state you had an agreement for $4500 to $5000. Be nice about it and see what they say.

If you get a nasty reply then reassess.

That is how Richard makes his money, knowing what to put where. It is intellectual property built up over many years of hard work. Why not use Richard to do the loan for you.

Main residences are generally exempt. But not always. eg>

If you run a buinsess from the home,

If the land area is over 2 hectares

If you are in the business of buying and renovating.

If it is a normal size block with one house and no renters or business conducted at home then it would probably be exempt and you would probably be able to argue that you are not doing this as a business.

I saved a bloke once from a financial planner – sort of. Planner recommended he sell his commercial building to his SMSF and lease it back. This was in the statement of advice prepared by the planner. Only problem the land was leasehold and he didn’t own the land. This would have been a breach of the SIS Act and his fund would have been non complying.

The fin planner critised me as being too negative.

Amazingly the guy stayed with the planner.

I had a client that optioned up about 20 blocks of land off the plan. They tripled in value before settlement. He was a millionaire out of that deal. I’ve also had other deals where I have sold an option and it hasn’t been exercised.

Are you willing to lose the option amount?

IF YOUr friend is going to be living in the front house then a trust may not be suitable.

Maybe tenants in common might be better. Your share in your trust and his share in his name. Draw up a deed of partition and then settle. later divide the land into 2 with 1 block owned 100% by each of you. Possibly no stamp duty on the split.