Your sort of correct.

If you use a house as security and default on the loan the lender can take repossession and then sell the house to cover the loan taken out. However, if you default on a loan and the bank repossess the house and sell it and there is still a shortfall the bank will then sue you and if they win they can still go after any house even if have houses at different banks with different and separate loans this. If just takes a bit longer as there is a bit more to it.

Using a trust means that the properties are not yours so they will not be easily able to take the trust property. However if they bankrupt you they may start looking at your relationship with the trusts – did you gift money to it, or loan money to it. If you did then they may be able to sue the trustee to get the money back in certain cases. But it is still added protection as it takes a lot of legal work and time to do this and it may not even happen.

Business operation is a dangerous game, but anyone can be sued and you could end up having a substantial award against you for something which was not really your fault – there is a thread here about a landlord who was sued because a tenant punched a window and cut his hand on glass. It wasn't safety glass and the landlord and agent had a $800,000 judgment against them.

If th

Just think of the parents as Bank A and now you are financing with bank B.

(Can't see how the above post by Galeel is relevant)

I would think he would have to file an Australian tax return and all the property would be claimed here. Not sure of PNG's requirements but he may have to declare Australian income there too.

If it results in a loss here, that loss would be carried forward unit he gets an income here to offset it.

But I am only guessing really.

majors are usually around $900 to $1000 – unless fixed loans. My recent westpac loan was $900 exit fee – or $1000?

Yep.

Why not just use a major bank?

Bankwest has just reintroduced their 95% LVR loan too. LMI can be captialised too.

Its best to never name beneficiaries where possible and that gets around the problem. You could possibly amend the trust deed but you need legal advice as it could cause a resettlement.

I am curious what role the company plays if you are the trustee. I am also curious what the deed of trust declaration says. If the beneficiary is saying X holds the property as trustee for me, then this is what the original trust deed would say. I suspect it is something like the beneficiary acknowledging the trustee is borrowing on behalf of the trust and that they don't have a problem with this.

You also have to be careful about stamp duty issues with declarations of trust – if you are not careful double stamp duty could apply so don't sign without legal advice.

Mate, that is like asking what should i have for dinner.

So much would depend on the figures and your situation it would be impossible for anyone to answer. I would suggest to sit down and do figures for selling and for keeping and see how the compare. Then reassess after that.

I wouldn't take tax advice from a CBA banker. Do your own research and then see a professional.

An offset account is a savings account so there should be no tax implications of using it. If you use a so called all in one account which is a loan (LOC or redraw) you will end up in an awful tax mess. See the post http://www.somersoft.com/forums/showthread.php?p=717891 where this has happened to an unfortunate person who used the deposit/redraw facility on his loan and then later moved out and has tried to claim the interest on the loan.

For the borrowing to pay interest strategy you need to seek prof advice on the set up and probably apply for a private ruling.

Do you mean your accountant didn't originally suggest getting a depreciation report done??

You shouldn't be buy property to reduce tax, but with the aim of making money. Tax should be only an incidental consideration.

What strategy is there to implement that needs paying for?