What do you need to know?

Depreciation is claimed by the owner of the property = the 'trust'. If you trust is running at a loss, which it probably will in the early years, then you cannot offset private income and will, ideally, need to direct other income into the trust to offset this.

Its worth looking into as it can free up cash which can pay down non-deductible debt and this will save you tax long term which will hopefully make up for the stamp duty costs.

Or even a company as directors of trustee companies trading can be personally held liable for debts of the trust.

You cannot change ownership without paying stamp duty – generally, an exemption in some situations is for transfers between spouses.

You could transfer half the house, or even less, such as 1% to get your name on title. you will only pay stamp duty on the value of the portion transferred. See if your bank is happy with this first though – get a preapproval, or even a full approval first.

Also consider the other aspects of the deal:
– effect on centrelink benefits for your mum – current/future.
– asset protection benefits
– estate planning – any siblings who may be annoyed for e.g.
– CGT

converting to a LOC is very dangerous. I would suggest you never start putting wages etc in and taking them out. It may work out ok if you are just capitalising the interest, I would have done it part IO with offset and part LOC.

It is a good idea to start borrowing for the property as you plan but run it by your tax advisor first.

He is talking about CGT I think. You still have to pay these costs though.

never heard of it.

I can't help with a solicitor in QLD – and they wouldn't do the calculations for you anyway. Just download a loan amortisation template for excel and you can do it in 5 secs.

Why?

You may as well have the wife as a borrower.

Be careful – sounds messy and you can get yourself into a tax mess if you don't understand.

Don't increase any loans now for the car etc as this portion will not be deductible. If you need to do that then make a separate split. Also do the conversion to IO asap and stop paying down the loan.

For tax just remember than any money taken from redraw = new borrowings and the interest on this will only be deductibile if the money is borrowed for investment purposes. If you want to do the bathroom etc the interest on money borrowed for this may be deductible once the place is on the market for rent. You should also be able to depreciate the new improvements and/or claim the repairs outright (depending on what is done). I would suggest you put in up for rent asap at a high price, while you do the work.