Actually I think it should be 1/11th of the sale price.

You will be able to claim GST on items purchased for the development though. Did you pay GST on the purchase?

Sale price x 10%??

Hi Mandy

Sorry to hear about your husband's cancer.

What you are proposing won't really work although it may be possible in theory.

For it to work you will need to find someone with $220,000 in cash wanting to buy half a property – what is in it for them? They will be up for stamp duty and will expect an income return as well. If you were to sell a lessor amount then you would all have to apply for a mortgage and be jointly and severally liable which won't really work either.

It may work out better to sell outright as Michael suggests. This may help you qualify for rental assistance if you then rent. You may be able to set up a special disability trust for the funds released and these are concessionally taxed and there are special centrelink rules regarding the transfer of money into the trust. If the trust had $200,000 it could be invested with the income going to your husband possibilty tax free.

I think you need some good advice.

probably stamp duty and cgt

This is not pessimistic but smart. There are several 'what ifs' that you should ask yourself before any investment.

Besides the financial ones such as "what if I can't sell" etc there are legal ones:

1. What if I were to become incapacitated, eg. in a coma
2. What if I were to die
3. What if I were to go bankrupt

What would happen if one of these happened to you?

Then it probably will be deductible – or the interest on this $130k – when the property is available for rent.

The loan balance didn't drop below this level at any stage did it?

Free advice is very costly!

You can be both trustee and be a beneficiary but not the Only beneficiary otherwise there would be no trust

You probably need to assess how it is and will be expected to perform. If you can get a better return elsewhere then it may be worth selling.

Also factor in the non deductible interest you could save by paying down personal debt with the money released.
And if it has only grown $10k then you might have a capital loss which could be used to offset future capital gains.

You can switch your loans around but the important thing is tax deductibility. Paying one loan out with another doesn't change the purpose of the loan.