amsaini15 wrote:

Apologises for hijacking this thread My Ques is similar to the one posted by stu82. I have a line of credit on my IP which is under joint name. My and wife's share in the IP is 99/1%. If I borrow from LOC to invest in Shares under her name, Will the interest on the loc be claimed in the same percentage (99/1) or My wife can claim fully as Shares are under her name only. Please advise. Thanks

Wife could claim fully if the money borrowed is used by her to invest in shares (that are income producing)

Your friend doesn't have a contract with the electricity company so they are unlikely be to liable for the tenants bills. I cannot think of any circumstances where they could be liable.

Privacy is a different matter. I am not sure of the answer but would request the ombudsman to provide the request in writing and to 'compell' you to provide the details and under what basis of law you are compelled. Under the privacy act you may be exempt from the requirement to keep privacy details from release if compelled by law. Privacy Act also may not even apply in this situation.

Multiple posts over multiple forums…..

yes but many issues such as
fbt
cgt
stamp dut
asset protection
etc

not worth doing

Oh dear!

You have a potential mess – what if they can't complete and they have no assets? Suing them won't get you anywhere but more costs.

What is a 'key undertaking'.

Consider you may have to sue his workmen in the end too so find out about them if you can. September is still a long way off.

But it will probably work out ok in the end.

Going on title will create issues – CGT if it is not your main residence, guaranteeing or going on loan documents etc.

What you could do is lend and have a written agreement drawn up which gives you a caveatable interest in the property. You could then place a caveat on the property which would prevent subsequence mortgages or sale whilst lodged. You could do this through a lawyer.

Are you talking about your old PPOR? Could possible be done without CGT if one title and you move back into both sides. New duplex would be subject to CGT though.

You need expert tax advice on this before proceeding.

Yes, CGT and GST probably payable on duplex

Inv 1 loan 165 valuation 240k = 69% LVR
Inv 2 loan 161 valuation 210k = 77% LVR
PPOR under construct land paid in full at $220k recent solids at 270k, house build 400k likely end loan $350k
not sure what this sentence means, but if it is valued at 270 for land and 400 for build then =670k and if your loan is only $350k then LVR =52%

So each loan will have an LVR less than 80%. Why would anyone even contemplate crossing? Even if one or two were over 80% you should still be able to do it without crossing.

Using a property as security means you are giving the lender extra rights to take that property should default happen – surely you would want to minimise and/or delay this as much as possible.