You may be able to get a loan on the existing property and/or new property and use this to purchase the new one. Rental income from the new one can be included and will help you service. You can then settle and try to sell the existing one. You may also be able to borrow a bit extra to cover some of the expenses during the cross over period.

I am not trying to be difficult, but would love to know how you are getting the stamp duty exemption. I had a quick read of the Duties act and cannot find any exemptions which would qualify. I am a solicitor but don't do conveyancing and have no experience with rural properties, but it would be good to know.

Rusty

I would be interested in learning more about the stamp duty exemption. I don't know of any exemptions for transferring land unless it is for a deceased estate or from a trustee to beneficiary. Do you have any idea how it was done, ie on what basis?

I have replied to the other thread regarding this.

I think she is in potentially big trouble. partners are jointly and severably liable. So if one doesn't pay the other 2 must, if 2 don't pay the remaining partner must.

Her house is used as security for the loan. So she must keep up the repayments or lose the house.

The landlord will require the rent to be paid. If this doesn't happen and there is a default he could come after any and all of the partners (assuming they are all on the lease, or guaranteed the lease.) He could go to court and get a judgment against all. He can then chose how to enforce his judgment and recover the money owed (possibly another 6 years of rent!). He could get further court orders to sell one of more of the properties of any of the partners, seize goods, garnish wages and bank accounts etc etc.

Once you sign a lease there is generally no way out. It is like getting a loan from a bank for 10 years. You cannot just say I want out after 5 years, you are legally obliged to honor the agreement.

In this case I would suggest the friend try to get the other partners to buy her out, or offer to get her share to them for no money. The landlord will need to be approached and the lease renegotiated. The landlord is unlikely to do this unless the remaining partners are in a stronger financial position that they were at the start of the lease – he will essentially be giving up security by letting one person out.

Thanks.

I would just be worried about refinancing out after a few years. If longer term you could use the cashflow to pay off the loans which would make it safer/

Sounds good Troy

What sort of rates does that lender offer and how long are the loan terms?

The offset account on the main residence is the way to go.

The reason has nothing to do with CGT (loans don't affect capital gains or CGT) but to do with deductibility of interest. You would want to reduce the amount of non-deductible interest payable before any deductible.

I helped someone move a few months ago and it is a pain. Wouldn't want to do it twice in a few months, thats for sure.

In that case all names will be on title so any change in ownership would mean change in title – such as bank accounts, leases, contracts etc. It probably won't be easy to get a name off the lease as the landlord will need to reassess the ability of the remaining partners and would be unlikelly to release someone early if the business is going bad.

If they own the property then there will be similar issues such as redoing the loan and requalifying.

Stamp duty issues too and probably capital losses and or tax losses.

A partnership is very dangerous for these reasons. If the business goes down the landlord could come after each and all of the tenants (assuming all entered into the lease). Each person's other assets will be at risk.

Do they own the building or rent?
How long to go on the lease?

Or, you sell and rent for a period of 6 months while you look for the new one.

This is the safest way, but then you have the hassle of moving twice!