FHOG and CGT have different requirements.

The requirement for a FHOG is that you have to live there for 6 months which you appear to have done.

The requirement for the CGT main residence exemption is that the property has to be your main residence or was your main residence and you are temporarily absent.

Couples can only have one main residence between them so when you got married or become defacto this is when you can only have 1 before that both could be qualified.

Definitely.

If you start paying PI that means you are diverting funds from your home loan (what you could have been using to pay of your home loan). Remember home loans are private expenses so the interest will not be deductible like an investment loan

Jason, if you want to learn about asset protection then I would recommend the Trust Structure Guide 2012 also from the tax institute. Costs a fortune though.

I should point out that the notion estate orders are part of the family provision section of the Succession Act in NSW and they only apply after the death of a person. What these orders mean is that assets that were associated with the deceased but now owned by them or not falling into the estate can be deemed to be part of the estate. This includes super, trust assets and assets held as joint tenants. So someone apply for a family provision order relating to a will could get their hands on these assets. Family provision claims can be made by certain eligible persons who have not been adequately provided for in a will.

You may be confusing the 50% CGT reduction which is available for assets held longer than 12 months.

For a main residence there is no minimum period in the legislation in which you must live to avoid CGT. But the main residence exemption is not available for vacant land.

But if you are building and move in as soon as practical after completion and live there for at least 3 months then you may be able to claim the main residence CGT exemption
s118-150 ITAA97
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.150.html

Do you have the valuation?

It would be extremely dangerous for a purchaser to buy something like this on vendor finance. The bank could take the property and the purchaser left with nothing.

If a purchaser did buy then they could only transfer the title into their name if the vendor is able to pay out the mortgage. Or if the bank is willing to take a hit.

They would also need to qualify for finance on their own – which wouldn't be easy with a vendor finance deal.

Your mum would be a beneficiary of the trust and the appointor so it would affect pension.

The proceeds of the sale should probably be made out to the trustee of the trust – which name is the trust bank account in? Seek legal advice first.

Its not the trailing commissions that is the problem but the fact that most banks will require the broker to give back the upfront commission if the loan is discharged within a certain period. One lender this period is 3 years, most it is 18 months.

Purchase?
Is there a real estate agent involved?
LVR?