Also think about death, divorce and bankruptcy.

What if one wants to sell and the other doesn't?
Stamp duty and CGT iimplications of one buying out the other etc.
Accessing equity down the track.

Yes, it will have an impact because you will be paying more tax if you earn more than a certain amount. I think if you earn more than $48k it will be an extra 4% tax.

Look into adverse possession too. He may be able to make a claim for that part of the land if in continuous occupation for 12 years or so.

You might want to look at the PDS docs on how not to be a developer on http://www.bantacs.com.au

Did you live in the original PPOR before renting it out? And while renting it out did you ever have another main residence?

Yes, me Sydney too. CBD. my email is Terry@loan-experts.com.au

Well  thats what you can expect with a vague clause  -works in the favour of the purchaser in this case. I think you should let it slide and resell. Next time someone tries a valuation or finance clause try to be very specific – name the bank, time and amount that must be approved and how they are to notify you if it is not approved.

You should seek legal advice before entering into contracts.

can your prove your income? Are you willing to show 12 months BAS statements and trading accounts and do these reflect the income you will declare?

A trust is where A owns something for B.

Easiest way to understand is to think of a parent opening a bank account for a 2 year old. The parent is the legal owner of the account, title is in the name of the parent. The parent is the trustee. But it is the 2 yr old who really owns the money. 2 yr is the beneficial owner or the beneficiary.

So a trust is where the legal ownership is separated from the beneficial ownership.

If mum goes bankrupt can they take the money in the account? Generally not because she is just holding it for 2 yr old.

Similar with property. You will have a trustee, which could be a company or a person. But you will also have many beneficiaries. The trustee just owns the property, legally, for all the beneficiaries of the trust.

Where it is good is that the income of the trust can go to any beneficiary (under a discretionary trust). So the trustee (which you want to be or to control) decides to distribute the income to the lowest tax payers of the group – the potential beneficiaries may be hundreds of people but the ones that control the trust will generally limit the distirbutions to benefit their close family.

It is good with bankruptcy too. Because if any one beneficiary were to go bankrupt the trustee would simply not give them any money while they are bankrupt – otherwise it would go to creditors. If the trustee were to go bankrupt then the trust assets don't belong to them so they are generally not able to be taken.

But if you are looking at buying real property then there are many things to consider – trusts generally pay more land tax. The trust is a separate tax entity so any loss cannot be used to offset your personal income. Also trust taxation law is very complex so higher fees.