Forum Replies Created
If the nominee isn't in existence at the time of the contract then it may be a problem.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Is there any stamping of the deeds in QLD? In NSW deeds can be stamped up to 30 days after execution, so you could set up a trust in an hour or so.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Not sure why you are talking about redraw facility?
Whether to took the $50,000 from the loan yesterday or 29 years ago it is still what that borrowed money is used for that counts. ie the $50k seems to be used for a private expense and will not be deudctible.
Furthermore if you increased the loan or use redraw (maybe this is what you mean?) the result is the same. And you will end up with a mixed purpose loan which will make things less than ideal for future tax deductions
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Seek legal advice. Probably would be treated as a transfer so double duty.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
moxi10 wrote:In most cases the contract is "subject to finance", however there is usually a date, generally only a few weeks after initially signing the contract, by which time the purchaser must notify the vendor that they have organized their finance. Of course, there is no possibility of the banks guaranteeing to loan the money at the anticipated much later settlement date, so my understanding and personal experience leads me to believe that the purchaser has little choice other than to waive the right to the contract being subject to bank approved finance, at which point he no longer has the option of withdrawing from the purchase due to the lack of ability to complete finance. It seems to me to be a flawed system which exposes anyone signing an OTP contract to the risk of not being able to complete finance, even though their situation at the time of signing may have given them justifiable cause for full confidence in their ability to raise finance. The only certainty of completing finance is to have the entire amount in cash, otherwise there is always a risk that finance will not be attainable at settlement time. If I'm wrong about this point, I will be pleased to be corrected.Tony
I must disagree Tony. Most realestate contracts for the sale of land are not subject to finance. And for an off the plan sale they are virtually never subject to finance and couldn't be.
Off the plan means the plan of sub-division is not registered therefore finance couldn't be approved until this happens. This would be about 2 weeks before settlement usually. No vendor is going to enter a contract with someone for 2 years with a clause giving them a way out 2 weeks before settlement. They couldn't find another buyer in time at this stage.
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
washingtonbrown wrote:Well the good news is – the Tax Working Group did nothing.Depreciation is back baby!!
Regards
Tyron Hyde
This i typical of Gorvernment. Spend heaps of money doing all this and causing others to work making submissions etc and then nothing comes of it.
In this case it is probably a good outcome but still…
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
PLC wrote:Hi Terry,My sister bought vacant land last year which was onsold to her before settlement. The person who initially purchased it (about a month or so before) wanted to sell at a minor profit (which my sister accepted), but found out that if they did that, they would be liable for stamp duty which would have meant a loss. However they were informed if they onsold at the same price, then they would not be liable for stamp duty, so it was passed on at the same price. At least that's what my sister was told. I find it strange that the original purchaser wouldn't have sold at the minor profit otherwise.
I had a look and there is something in the Victorian Stamp Duties Act under Part 4A, 32C (3) which may support this claim. Obviously I'm not a lawyer and may have misinterpreted this.
Cheers
Tom
Thanks Tom,
this is interesting
http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s32c.html
I think you may be correct in your interpretation. I don't know of any similar provisions in NSW either.
The op should check this out with their lawyer. Point this section out to them if they say stamp is payable again.
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
garmon wrote:I thinks agent is a most important part of real estate sector… Because they have full information of real estate market. And they have full knowledge about property law… So they are very helpful for selling and buying property…And they also provide best guideline for property…Full knowledge of real estate market? property law?
Are you serious?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
PLC wrote:Though I think there may be a loophole where you can get out of paying stamp duty if it is onsold for no additional consideration (i.e at the same price). Maybe Terry may be able to confirm?
Cheers
Tom
Hi Tom.
I have never heard of anything like this.
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_sun wrote:How's that? I've bought this off the plan, hence stamp duty should be minimum right?! (from the purchase date)But the buyer would pay the almost full stamp duty, assuming is 90% from settlement?
You are selling a property which is a dutiable transaction. Stamp duty would be assessed the same if it is (a normal sale which it would 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
My fees are pretty reasonable I think. I tend not to charge hourly rates for the legal work and do fixed price agreements. For the mortgage broking side I generally don't charge, for the tax side I work with accountants who charge fixed fees for returns.
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
This may be an opportunity to get your structure set up 'right' so talk to a knowledge advisor first.
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
Posting links to american websites won't help if you are located in Australia.
Names on property dont really matter that much in divorce property settlement. Check out the family law act and the family law court website.
Property of the marriage can be divided. This can include all property of individuals of the marriage including land, cash, inheritances etc.
Who gets what will depend on a heap of factors including where the property come from, who contributed to it, needs 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
I work with http://www.houseofwealth.com.au who have opened up a branch in the CBD of Sydney (as well as Melbourne).
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
JacM wrote:Lawyers are not cheap.
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
Chris2012 wrote:We had the property revalued and extended to loan ready for our next purchase.Could I pay the council rates of the IP, which is a tax deductible expense, from these borrowed funds?
Yes you can. But the important question is how do you get access to the funds?I
If you transfer to a cheque account to write a cheque then the answer would be "possibly not".
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
N@than wrote:For a portfolio that is mostly based in mining towns why is your yield so low!?? Doesn't sound enticing at all sorry!Must be the cashflow after expenses??
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
First property could still be CGT free depending on the circumstances.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Probably, but will depend on the circumstances.
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
dgirl wrote:So with this in mind, which strategy is better:
1. sell the PPOR & pay cash for the deposit on 500K IP with 450K loan 450K in offset
2. sell the PPOR & pay cash for the deposits on two IPs (and borrow more funds)
3. release the equity, and buy a 400K property
…any other options?
1.
The lose the CGT exemption and have no better tax deductions than before. They also incur selling costs and buying costs.
2. Selling costs and buying costs, but they have $400,000 cash to invest elsewhere – which they will still pay tax on.
3. This would create some losses which could offset the rent the receive on the old PPOR which could still be tax free. Only worth doing if the new property will grow more than the losses though.
4. Use a discretionary trust to invest by securing a LOC against the PPOR and borrowing to buy more property. Adds good asset protection and sets up a tax effective vehicle for the new investments.
But if they are going overseas and will become non residents then they need specialist tax advice first.
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
