Hi Joe

Just worried that you will be missing something if you do it yourself. The contracts for NSW and other states are standard. But that doesn't mean nothing needs to be added to them. Special conditions are in each contract that I have seen. So if you do it yourself how are you going to draft these special conditions? How are you going to know if a search you have included is valid and therefore how do you know your contract is even valid?

Joe, what about my comments? Seems you don't understand.

Sounds like your accountant doesn't understand structures very well – or you have misinterpreted him/her.

It is certainly not a good idea to use a company to hold appreciating assets for a number of reasons.

A discretionary trust is totally different however.

a mere profit of $2000 in a trust could make it all worthwhile. eg. a property in your name at the top rate rate with a $2000 profit could result in almost $1000 in tax. Whereas if it was in a trust could result in no tax at all.

Then consider the future growth as well.

As for asset protection it is not just as simple as setting up a trust it is but how it is set up and how you use it. I can think of around 10 ways that a trust could be attacked if done incorrectly.

If you know a lot about property law you could draft your own contracts. But what if you leave something important out and then go to your solicitor after the purchaser has signed – you will be locked into a costly mistake maybe. eg. You come to the settlement period and the purchaser says they don't want to proceed now and is rescinding. You having relied on the money from this sale coming through to settle on the next one and then that falls over too.

in NSW you could buy the standard contract for $19 or so.

But then what? Do you know what special conditions needed? What searches to include? Expiry dates of searches. What boxes to tick, how to treat GST, land tax etc.

eg. you may include one document which is over 6 months in age and this could mean the contract is invalid. That could mean the purchaser could sign and exchange and then later decide to pull out using this as an out.

There is no real need to actually meet your accountant face to face. It can all be done over the phone and email/fax these days.

I think that paragraph was referring to the trustee in bankruptcy.

But a court can replace a trustee. In NSW this can be done under the Trustee Act. Just look at the Gina Reinhart case at the moment. Some of her children are trying to have the trustee (Gina) replaced.

certainly not free but a valuer can do a value as at a certain date in the past.

You would have to work out a comparison on what the CGT would be on both. And then factor in the ooprtunity cost of paying the tax now on the one you sell or retain the exemption for down the track.

If you rent the house out before living in it then the CGT is worked out of a time basis. If you live in it first and then rent it out you can take the value at the date if became a rental and use that as your cost base.

Since the offset account is just cash there should be no tax consequences how you pay for bills. Just take the cash out of the offset and pay or electronic transfer etc.