You have the right to ask anything.

What does your written agreement with them say? ie do they charge a fixed amount or do they charge you per ad etc?

In Victoria a spouse can probably purchase the other spouses share of a property without paying stamp duty. Borrowing to buy this share should result in the interest on this borrowing to be deductible if the property is then rented out. So you will be freeing up cash which will result in a lower loan on the new PPOR and result in lower non deductible interest. = Greater deductions.

You shouldnt really need a valuation if you just base it on the bank's own valuation. You will need to redo the loans as the ownership is changing and will need to do the conveyancing as well. But it will probably be worth it. It could save you up to $8k to $10k approx per year in interest and the effect will accumulate.

You have to get advice as there are various rules concerning the selling of assets. She may end up losing some of the pension if it is sold for example. But keeping it and renting it out may also result in the income making her go over the limit and result in a reduction of pension (I am really only guessing here). There are also CGT considerations, especially if she has held the unit from before 1985 as it may be tax exempt.

Your nan should also set up a power of attorney to cover medical decisions and financial decisions and she should have her will done or updated.

Thanks for your concern.

Things are extremely bad, i agree. But I am not sure how bad it is yet, or how bad it is going to get. Electricity has been reconnected to all the reactors, but there is still a heap of work to do with them.

I think it will be months before they will be under control.

The Internation Atomic Energy Agency is saying that there is no significant risk to human health
http://www.iaea.org/newscenter/news/tsunamiupdate01.html

But I guess they have a vested interest in promoting nuclear energy.

Osaka, where I am, is about 500km west from Fukushima, so it is fairly safe for now, I think.

1. I think you will have to wait until the property is available for rent before claiming anything.

2. You shouldn't have to prove you have moved out. You will be getting rental income and declaring it that should be enough.

Its probably not a scam, just an expensive scheme to capitalise interest on the investment loans while paying off the family home loan first.

I would be concerned about:
1. The high fee
2. The fact that they are also selling property, or steering people into property sales
3. The fact that the ATO could disallow the deductions on the capitalised interest – which is certainly possible if it is done with the dominant purpose of claiming a deduction. It is also possible that the interest may not be claimable if set up incorrectly.
4. Their insurances may not cover them for the provision of tax advice.

Tax deductibility will usually depend on the names on title, not on the loan.

PeCats

I would suggest you do some research before signing up to such a scheme.

I have 2 answers:
1. Could be the same, but maybe different. eg. you could set up a trust and a company which has no capacity in relation to the trust. ie the company could be trustee, or it could be operating in its own right.

2. It is possible, but many hurdles to overcome. First one is that your employer will have to make you a contractor, others are tax related.

I doubt it.