Royce

1. certainly not
2. no. This wouldn’t work in a company either. A car is a capital asset so not deductible, but it may help to reduce the taxable income slightly by depreciation or other claims, but you couldn’t claim the car outright.
3. costs from nil to $20k to set up. average around $2k or so can be done in a few min.

BUT, I wasn’t suggesting you buy in a trust

Any chance you would need to upgrade the current PPOR or need large amounts of cash?

I would generally perfer to keep them IO with an offset account for the extra – but only if you are discriplined.

some guy with the same name asked exactly the same question here

https://www.propertyinvesting.com/forums/help-needed/4347359

maybe you two should catch up?

Jac, most people don’t grasp its significance.

I met with one young guy who had a very large inheritance. He could have done something even better with a post death testamentary trust – but he just went away and never implemented anything. He just started buying property with the cash as deposits..

Gift the money to a discretionary trust. Borrow it back later on to buy your PPOR. Have a loan agreement which gives an initial interest free period. Borrow 80% from the bank. Live in the property for 6 months, then move out. Rent it. You can still claim it as the main residence, but get all the deductions. Have the trust charge you reasonable rates for the outstanding loan and pay the bank their interest. Allow the trust to take a second mortgage over the property.

This has 2 effects.

1. Asset proteciton in the event of bankrutpcy and some asset proteciton if you later go through a marital separation.

2. Diverts income into the trust which can then be distributed more tax effectively.

Yes. Depending on what it is. New stove for example will be depreciated over 5 years or so. If you move in within only 2 weeks of fitting this then you could only claim 2 weeks worth.

In a SMSF it couldn't work if the vendor wanted to take a charge over the property.

Other entities should be ok. But the problem will be finding a lender willing do lend on this basis. Last time I looked I could not find any main stream lender. But that was a few years ago.

What is the idiot going to report to the police? The shed has been used to grow drugs or something? Where is the proof.

I would report to the police that he come around and hassled you. It would be recorded on their system and can therefore be used as evidence if something did happen in the future.

Moving into the second one immediately could assist you down the track. You won’t know which one will have the most capital growth until much later (maybe they will be similar growth because same suburb). But the good thing is that you don’t have to chose which one you will nominate for the CGT exemption until the year you sell. So if you make sure both could qualify as the main residence then you may be able to wait 6 years and then reassess.

Why not move in first so the whole period can be considered as your main residence? If you rent it first any capital gain will be apportioned over time.

Will you pay stamp duty? if not you cannot claim it.

LMI would need to be apportioned