What a mess! The caveat is the least of your worries.

You have to be very careful as you have probably committed a number of criminal offences. You could be charged with money laundering offences or fraud offences. eg s193C Crimes Act, 2 years imprisonment.

You real estate agent could be charged as well. They would lose their licence if found guilty and possibly even if they get off.

Now the caveat issue. He has a contract with you to purchase the house. He therefore has a right to lodge a caveat. I cannot follow what you have written It could be that you are able to terminate the contract because of the coercion, and that would mean the caveat could be withdrawn and you could resell etc. But you would need to talk to a solicitor about that. You should try legal aid or one of the free legal advice lines.

You would probably be able to claim a deduction based on the rate for the engine size x KM travelled for IP related matters

Sorry I am not familiar with QLD law. You would have to look at the Duties Act QLD and try looking at the rulings on the OSR site. Sounds like a generous discount.

The company would (or should) be only taking in its capacity as trustee. ie no separate business outside the trust. So the company would have a nil tax return and the trust tax return reflect the business.

It could be that the trust made a profit at some stage in the distant past and instead of distributing money to the beneficiary they just kept a record of it as if they distributed the money and the beneficiary lent it back. So now it is essentially a loan from the beneficiary.

After this the trust must have made a loss which it is rolling over each year.

If this is what happened then the trust could just be repaying part of the loan. The beneficiary would not have to declare this as income as it is just repayment of a loan. The trust would record a reduction in the loan account of the beneficiary as it reduces the debt.

There are no very strict rules about this known as Division 7A loans. There needs to be commercial loan agreements etc in place.

No, original purpose doesn't matter.

If you set up a LOC and tell the bank the money was to be used for a heart transplant for your nanna and then you just went out and bought shares using the LOC (and left poor nanna to fend for herself) then the interest would be deductible.

It is the purpose the borrowed money is used for that matters in this case. This is known as the "use test" and was first outlined in the case of FC of T v Munro (1926) 38 CLR 153.

Do you mean you need another loan to set up the farm on top of the vendor financing?

Doesn't sound promising narboz.

You have no deposit and a a 60k debt. Sounds like you need to borrow 110% and will also have to find stamp duty too. Even if the vendor could finance you in to 100% LVR you would find it very hard to get finance to pay the vendor out in a few years.

Being non residents complicates things. You will probably have to withhold tax from your payments to them. The rate will depend on which country they are residents of.

I would be inclined to look for something cheap in a major capital city. Something with a relatively high rent return already and with potential to increase by tidying up the place – not necessarily you, but tradesmen. Some area which will be pulled up by the growth in surrounding suburbs. eg Sydney is extremely expensive place to live and rent, but it is still possible to buy 3 bedroom houses for $200,000. My reasoning is that as prices rise and peple can't afford to live in other areas the demand for these will rise fast and prices should rise more than average. (this may turn out to be wrong of course). You might get $300 pw rent for these or even more. Check out Nathan Birch who is going great with this strategy.

Also get your structure planned. Research the tax angle and keep reading as much as you can.

But what are you basing that on?