Bridging loans complicates things…

Thanks Ralph. Very interesting.

Aussie Guy

A conditional contract is usually only a few weeks at most. What we probably have here is a finance fully approved and a delay in settlement (prob because of christmas).

You exaggerate about the penalty interest. It is usually about 10 to 15% pa. daily not much, and not much considering you would not be paying 6% to the bank this time either.

The bank doesn’t allow the contract to go unconditional, the purchaser does. The bank is not a party to the purchase. If the bank cannot meet their own deadlines then sometimes they pay compensation – usually only if their fault.

Is she already your ex? If so you may have stamp duty and CGT to consider.

If you are going through a separation then the transfer could be exempt of stamp duty and CGT could be rolled over – but watch out for CGT pregant transfers as you will inherit the tax liability.

Process would be

1. Get a pre-approval to make sure it is theoretically possible.

2. Seek tax advice

3. seek legal advice

4. apply for full approval

5 arrange for the conveyancing and stamp duty exemptions etc

Yes, I am in Sydney and I would be interested to hear what they recommend. I am in the process of setting up as a financial planner as well.

Hi Richard,

I just checked my emails and have one from NAB in Nov this year – max $2.5mil at 95% LVR they were saying then.

NAB can go up to 95% LVR up to $2million from memory.

Depends on what you mean by 'business' and how things are structured.

If you personally go bankrupt all the property you own is at risk. The trustee in bankruptcy stands in your shoes and 'is; you. They sell your property and use this money to pay creditors.

Property = shares, units in unit trusts, land etc. But not property held on trust for others.

So the best form of asset protection is not to own any property. An interest in a discretionary trust is not property – they trustee in bankrupcy can still stand in your shoes and can ask to be conisdered when the trustee is distributing income, but that is all as, depending on the set up, there will be no requirement to distribute to him.

Loan amounts have no effect on capital gains tax.

Asset protection against what?

Generally:

For trading entities a Pty Ltd company

for bankruptcy a discretionary trust and SMSF fund

for family law matters celibacy

for death, depends.

Structure is only one part of asset protection. The rest depends on how transactions are conducted and the internal set ups – terms of the trust etc.