I am not familiar with VIC contracts, but if it was NSW you could claim compensation for misdescription. The vendor can rescind rescind if the total amount claimed is greater than 5%. I don't think the purchaser has the right to rescind

What did your solicitor say?

Yes you would pay stamp duty when you sell to a unit trust, or other trust. Full market rates too.

It is not possible to transfer a residential property you own to a SMSF in which you are a member, but it would have been possible to transfer units.

If you want to keep A then it may be better to just transfer half to one of you. But that would only release about $200,000 so you will still have a $400,000 loan on B. Then again if you sell to a unit trust you could reduce this loan to $200,000 by freeing up $400,000.

Interest on:
$400,000 = $28,000 pa
$200,000 = $14,000 pa

If you are paying say 30% tax then 30% x $14,000 = $4,200 saving pa.

What is the stamp duty on the full transfer and is it worth doing for the annual savings?

Also consider in future you may be able to transfer the units to your smsf.

Make sure you get expert advice as this are very rough ideas and smsf laws are very complex.

If your grandmother is not appointor you grandfather is sole appointor then your grandfather may be able to remove her as trustee.

we all do

If you run your own business then why do you pay so much tax?

Sounds like you need to read up on structuring and taxation and trusts etc.

You should learn from the mistakes of others rather than make your own mistakes.

So keep reading as much as you can and keep on learning. Warren Buffett says the number 1 rule is the preservation of capital. So you don't want to put all your money into a dud property which goes down in value. Think of the effect this would have on you. The loss, the opportunity cost and the lack of you money compounding for you.

Also start playing with excel spreadsheets. Make sure you are able to build your own property spreadsheet to calculate cashlow etc. You will learn more by building your own.

Also, do you own tax return in full and then give it to your accountant to do and see if you have missed anything or made any mistakes.

1. It is legal, but you have to consider if the interest in doing this will be deductible. You should seek legal advice and tax advice and maybe even private ruling. If the dominant purpose is to reduce your tax then the ATO could deny the interest deductions.

What you would actually be doing is selling your half to your spouse. He or she would borrow the money to buy your half. You would need to reapply for loans and pay exit fees and application fees again. You would also need to do the conveyancing or have a solicitor do it.

You should also consider selling to a unit trust. This is my preferred way to buy property now. You or your spouse can borrow to buy the units. The whole value of the property could be borrowed and the whole interest on the loan should be deductible. Later on you can let the trust redeem the units and the trust can covert into a discretionary trust. This offers huge advantages. firstly interest will be deductible and you can pay off the new PPOR, secondly your trust can borrow to buy back the units later on and the interest on ths will be deductible. You would have to pay CGT, but then can be reduced by various strategies. The units could even be transferred to third parties, possibly even a SMSF, and possibly wihtou stamp duty. If your SMSF could own the units then the rent could be received tax free when you are in retirement.

This is a complex structure and you may also have trouble getting finance. So you should seek expert advice before hand. It is also possible the ATO could deny the interest deductions – if that is the case it may be worth selling this property completely and buying a new one in the unit trust.

If you sell property B it will partially have CGT as it was not you main residence up until now – or when you move in.

If you sell A it could be totally CGT exempt. depending on the circumstances and when you sell

1. Solicitor should be advising you to get reports done.
2. The contract will have a title search in it. How old is it? one will need to be done just before settlement to make sure that there are no caveats etc which could be lodged just before settlement. Will cost you each time a search is done.
3. get finance fully approved before cooling off. solicitor will tell you what else needs to be done. answer requisitions on title questions, get funds to complete organised, sign transfer etc.

Spandex,

that is a vague goal. Its like going to the airport and when buying the ticket saying i want to go overseas at some time in the future.

If you want to speed up things you need to define wealth, ie set a figure and the set a plan on how to get that amount of wealth. (you don't have to put it up here though)