They have no registered mortgage without this document lodged. But they would still have an equitable mortgage. Nevertheless you could use this as a bargaining point.

Depends on you do it.

If you borrow money and place it in a savings account with other funds before using it then it is no longer borrowed money at the time you use it.

Yes, you def need to see a tax advisor as you will need to overcome the Personal Services Income Rules.(which could mean any income earned by the 'company' is actually your money).

Also you should never buy any assets in a trading entity because of the risk involved with business. If the business where to fail you could lose all the assets owned by the business.

discretionary trust?

It could possibly be CGT free for up to 6 years of your absence.

The trouble with owning a property jointly with another is that when you want to use the equity she will have to agree and participate in the loan. The same with the opposite situation if the sister wanted to borrow you would be required to be on the loan or to guarantee the loan. This would mean you would be both assessed as borrowing the full amount.

eg, if the property is worth $300,000 and you each borrowing $120,000 then for subsequent loans you will be assessed as owing $240,000 each for this property. And guess what happens if the sister stops paying her share of the loan?

So there are 2 risks here:
1. Double whammy hurting borrowing capacity, and
2 Risk of one party defaulting.

I am not an accountant but would think that any borrowings you incur now in relation to the property should be deductible (interest  mean) once the house is available for rent.

George,

If you have ever deposited money in the LOC and withdrawn it for personal expenses then your loan will be contaminated. If you keep on doing this you could end up with a large loan with none of the interest deductible.

However, if you are just using the LOC like an IO loan and then also paying for expenses for the property with the cheque book then it should be ok.

ie Do not pay anything into the loan ore than the interest. Not even temporarily.

Bank's fin planner? Sounds interesting!

In Vic transfers between spouses can be stamp duty exempt. But if you are no longer spouses then this may not apply.

But there will be provision for exemption from duty for a transfer as a result of a break up of a relationship. But to get this the commissioner of duties may need to be satisfied that it is a break up, unless you have a binding financial agreement or a court order.

So I guess the first thing to do would be to call the OSR and try and find out and to also look at the Duties Act (vic)