Jaxon wrote:

https://www.finder.com.au/capital-gains-tax-selling-property
Main place of residence
You can avoid paying CGT if you sell a dwelling that’s considered your main place of residence. You can only ever have one main residence at any given time unless you’re selling your old main residence and buying another. In this case you’re entitled to an overlap period of six months as long as the new property will be your new main residence, you lived in the old property for at least three continuous months in the 12 months before you sold it and it wasn’t used to produce rent in this same 12 month period. The ATO doesn’t give an exact description of what constitutes a main residence, but gives the following points to consider:
You and your family live in the dwelling.
Your mail is delivered there.
You have your personal belongings there.
You’re registered to vote at the property’s address.
You have connected a phone, gas and electricity to the property.
If you’ve lived in your home for the whole time you’ve owned it, haven’t rented it out either completely or to a lodger and the land is smaller than two hectares, you’ll get a full exemption on CGT when you sell. This is helpful if you plan to live the renovator’s life: selling your home, moving into another, renovating it and then selling the renovated property. And while you won’t make a rental income if you go down this path, all profits made from the renovation are exempt from CGT.

2 potential errors in this quote Jaxon.

Good luck at lets us know how you go.

You should get a copy of the original contract you entered. If it was 5 years then you have no one to blame other than yourself as you agreed to this. Why don’t you have a copy of this important document?

if the loan ‘expired’ in 2015 then you would have been required to have repaid it at this point, now you would be in default.

Can you service the loan if you would have to apply again?

There is no time frame that you have to live in it. From a tax point of view there is no minimum time frame to class it as the main residence either.

Tax implications are complex, it will be taxable so seek advice.

non qualified persons can’t advise on trusts, but they shouldn’t give general advice either. You seem to confuse accounting advice with tax advice – but only lawyers or tax agents should explain the tax aspects of a trust too – not tax incentives.

It is probably best not to comment, even generally, if you don’t understand what you are writing about, and best not to attempt to get new investors to call you directly in case you mislead them further.

Adam Sellers wrote:

Awesome, thank you so much Jaxon! I’ll do some more digging!

Jaxon wrote:

Adam every step you make should serve a purpose,
now the only real benefit is you can change a family (discretionary trust) ownership and payments at your own wants, this is huge value under the right setup and mainly pointless really while your building a portfolio.
to be honest why pay for a complex or even simply trust structure if it does not achieve any major win for you or serve a very important part of your goals.
Happy to chat about this and more anytime mate.

This answer doesn’t make sens. Are you qualified and licensed to advise on trusts Jaxon?

m wrote:

Will solicitor be able to put some light on this? or is it Accountant? or Mortgage broker?

A lawyer as it relates to the First Home Owner Grant legislation and duties act. You can look these up yourself too.

Developerme wrote:

Property for sale house 4 bedroom and 500m2 residential block for offers mid $500k range. Property will be in your name.
I will require to buy back property in contract after 3 years
If rented will return $465 per week rental – great location.
Willing to pay margin on original purchase price to buyer when repurchasing in three years – lets discuss what you want to be paid

Why would someone want to enter into such a deal? The entry and exit costs would be about 10%, the property would be cashflow negative and the prices may drop in 3 years. What is the potential advantage for a buyer?

Not if you sell it to a trust first. Main residence won’t apply to trust owned property.

Another option is to sell first one after subdivison and then sell it after 3 months, CGT free potentially. The second one can then become main residence.

Yes you will be up for CGT or icnome tax and possibly GST.

There are ways to minimise or eliminate these though so make sure you seek tax advice.