Strictly speaking there is no guarantee a trustee will ever distribute to a particular beneficiary. So if you build up a large asset base in the trust and guarantee the loans you will have a large debt by no guarantee of income (if you did have a guaranteed income stream from the trust there would be no asset protection).

But in practice banks generally will consider the trust income, even other trusts beside the one borrowing, as your own if you control the trust.

1. You need to convey it by filling in a transfer form and paying stamp duty – if applicable.
2. Yes. You will have to pay out the existing loan.
3. You will need to change the loan because the ownership is changing. Both names will need to go on the new loan.
4. Yes, but you may need approval of the FIRB.

What you will need to do is to tell your bank you want to change the loan and transfer title by adding your partner. The partner will probably need to supply proof of income if she has income. You will then need to talk to a conveyancer or work out how to do the transfer yourself. The new loan will pay out the old loan at settlement.

You should also work out the stamp duty implications for your state too.

Also consider using less cash may mean you have more cash for your PPOR loan or offset account saving you non deductible interest too

Duckster, do you reckon you would get a 6 month one?

One thing to consider when choosing which name is asset protection. Who is more likely to get sued? Possibly a Nurse could be sued for a negligent mistake – Although it may be a remote possibility it is still possible. Depending on what you do it may be better to have the house in your name.

But you also must be careful about whose money goes to pay the mortgage on this house. Even though it may be in your name, if sued, it could be argued that your wife has an interest in it, especially if she was paying the mortgage, You could be her trustee in effect. Having the house in one name may not protect the other person 100%, but it would be a great deterrent and it may be unlikely the creditors would pursue it any further.

Jointly going on loans also adds risk. If something happens and you can't pay both of your credit files will look bad.

It may also work out better for long term borrowing capability to start getting loans in one name only. No sense in wasting borrowing power by jointly going on loans.

Also since you may be renting out the existing PPOR in the future i would immediately stop paying any extra off the loan. Change it to IO and pay excess cash in the offset account. This will make you future tax deductions much larger and save you heaps of tax.

It would depend on the deal. With some deals all you would do is secure the property and later sell the option for a higher amount.

If there are development applications involved, then it may be different.
 

I would suggest you immediately stop paying extra into the loan and try to switch to a IO loan with a 100% offset account. Pay the min and put the rest in the offset.

When you get the new PPOR I suggest you do the same as you never know when you will move out of that one and rent it.

The buyers agent would no doubt charge a fee on the securing of the option. In General the Buyers agents charge for finding the property for the buyer and are not paid a commission by the seller.

Why type in capital letters?

I've purchased more than 10 without ever seeing them. At a minimum I would suggest you get someone you know to drive by and check out the area. They may sound good on paper and with the calculations but you never know what is around the corner or next door.