Ummester – it looks like your 'bearish'

Probably what you should have is a normal loan, preferrably IO, for the existing debt on your home loan and then a separate LOC for any equity up to 80% LVR.

When you invest you take the 20% deposit for the investment property from the LOC and borrow the remaining 80% as an IO loan separately.

Hello G

If you wish to transfer the properties now you will be up for stamp duty, CGT, legals and there will be little benefit of asset protection, especially for the next 5 years.

It would be a good idea if your husband ran his business thru a company rather than a sole trader as this will provide more protection.

Land tax should be only one consideration – albeit a big one in NSW. What about tax benefits of a discretionary?

generally that should be ok. Check with your accountant.

Thats a good return on their investment!

I don’t think it is a good idea to appoint a govt department to look after your affairs – it will be expensive too.

Do you have some family members who could act as your executor? You should use a few in case one or more predecease you – but you should update your will every year too. They also have to be willing and able to act.

You could, for example, divert royalty income to a trust. Once the money is in a trust, a discretionary trust it can then be diverted to other individuals and entities if they are also beneficiaries of the trust. The trust doesn’t pay tax but the beneficiaries will. So you could have one trust which is under taking a separate business of rental properties which are running at a loss. The loss of this trust can be offset by a distribution from another trust with an income, so that no tax will be paid on this income. Many other things are possible too. Thats why you need to work out a complete structure probably with multiple entities – so segregate investments and make it flexible in terms of taxation.

I am not sure about the foreign company rules, but your company may be required to register with ASIC if it is conducting a business here or property real property. I am unsure if this would also make it subject to the Corporations Act or not.

Good for generating legal fees anyway!

The latest Bantacs.com.au newsletter mentions that a recent private ruling on a debt recycling strategy was disallowed. So it is essential that you set the strategy up properly and seek your own private ruling before arranging accounts etc. If you do it incorrectly you could be in trouble.