Forum Replies Created
Good point Richard. Get around it by just not lending to natural persons buying resi property.
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
Hi Rosetta
am a little confused by this sentence “There are other strategies to consider such as triggering a CGT event now, and plan to reduce it” Perhaps you could clarify this for me please
As an example say you have a house with a $400,000 potential capital gain. You could sell 50% of it to your spouse, meaning a $200,0000 gain is triggered for you. This becomes a $100,000 gain after the 50% discount. You then prepay interest on other loans which potentially wipes out most of the tax, potentially all of it. You then leave the property to your heirs with most of the tax wiped out.
Keep in mind i just made up the numbers but these are the sorts of strategies you can implement now.
If you have any capital losses, or assets that have dropped in value, these can be sold in the same year as a gain and cancel out any tax potentially.
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
A will incorporating a testamentary discretionary trust, or multiple trusts, will cost about $3k to draw up, but the tax savings should be multiples of this, especially if there are non-resident beneficiaries. It might even help with UK inheritance taxes. My understanding of UK inheritance taxes, which is probably wrong, is that it is based on the value of the estate at probate. But probate will be applied for in Australia probably thus bypassing this. If you do have UK assets you could do one wills, making sure one doesn’t cancel the other, so that the UK probate size will be minimised.
You should be seeking advice from a lawyer admitted in the UK – there should be some of these in Australia.There are other strategies to consider such as triggering a CGT event now, and plan to reduce it. Or you could move into the one with the largest capital gains liability so that when you die the CGT liability on this one will be extinguished and the former main residence’s CGT will be minimal.
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
You will need to get a credit licence and once you have that you can start to advertise, approach brokers, etc
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
It depends. Generally the main residence can be sold tax free up to 2 years after death. But not all main residences are CGT free – over 2 hectares, run a business from there etc.
get some legal advice about minimising taxes. One way may be thru a testamentary discretionary 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
Have you got a credit 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
why would someone sell something for 60% retail price?
When you sell property there is generally a 10% deposit and the rest is paid at settlement. And you cannot get access to the deposit generally.It sounds like you are wanting people to pay up front, but not get legal title until 2 years later. Don’t think many would be prepared to risk that.
You could set up some sort of managed investment scheme where the client lends you money and you develop with them taking a mortgage over property. But you would need to own it outright.
If you are raising money from the public this will be very costly to set up.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
wow you are keen
best to make you money in business and to hold it in property – perhaps.
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 full duty would apply.
Mortgage discharge and registration
loan application fees
conveyancing fees.
CGT needs to be consideredTerryw | 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 is $3.6mil per year. If you receive 10% pa return on your capital you will need about $36mil in unencumbered assets.
To do this you could save $2mil per year, or buy $72mil worth of property and perhaps sell half and use the proceeds to pay off the rest.
How could you spend $300k per month?
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 know about commercial loans with offset accounts but how will you get the cash into the 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
You should contact a valuer.
Keep in mind, it could be totally exempt though.
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
which country are you purchasing in?
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
You shouldn’t take legal advice from friends. Speak to a lawyer and find out the implications, costs and then consider whether you should transfer the title to the 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
Only lawyers can set up trusts legally – speak to a structuring lawyer.
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 makes it hard as there are only really two investments out there – property or business and the way to invest in business is via the purchase of shares…
Perhaps look at the different ways to structure your investmnets.
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 you could use the 6 year rule on property A (providing it meets the other requirements).
But because the absence has been longer than 6 years it will not be totally CGT free. BUt a large chunk of it could be.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 am not sure why it is confusing.
Serviceability is worked out based on a set of criteria which means an IO loan will be treated more harshly than a PI loan assuming the same loan length.
You will still have to prove serviceability with additional income.
This is the same whether you buy a bargain or overpay for a property.
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 any state govt department would be endorsing any sort of legal documents. An irrevocable poa might be solid, but it could still be revoked on equitable grounds – such as undue influence, duress, fraud etc
There was a recent case involving a binding financial agreement (prenup) which failed because the husband basically applied undue pressure to the wife by pulling out the doc a few days before the wedding and saying sign this or the wedding was off. This sort of pressure was unreasonable so even though the document was legally valid, it could not be enforced.
Something similar could happen with a POA.
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
Lenders look at their notional cash flow figures based on PI loans, on remaining loan terms, usually at around 7%pa.
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
