yes. They will have to pay tax here and this will depend on their status, type of income and if there is a double taxation agreement with their country of tax residence.

Yes, the purpose will influence the value. Valuers need to be conservative when dealing with banks as they will have more likelihood of getting sued down the track. It is normal for their to be an extra fee to get it reassigned to the bank.

But it is strange that your bank is asking you to order it yourself.

You also want to be careful about putting all your eggs in the property basket. What about some shares with super?

You could do that in theory, but problems will arise in practice as it may be very hard to get a LOC if you do not have the income to support it and the interest on the LOC used for personal expenses may not be deductible.

A variation is to use the equity to purchase shares a margin loan with a low LVR. You can then live on the dividends and capitalise the interest. There is a very good posting on somersoft forums by Keithj about this.

You can still class a place as your main residence, even if absent. s118-145 ITAA
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

so depending on your circumstances you could class the old one as your main residence and sell it and pay no CGT. But if you did this your new one wouldn't be exempt.

See also s118-185 ITAA for the method to calculate the partial exemption.
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html

and under s118-190 your cost base of the property is set to the value the date you moved out.
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.190.html

GST should be included in the price. If he doesn't pay the ATO that is up to him.

Cross collateralisation is just the use of two securities (collateral) for 1 loan. So you could by an investment property and use this and the PPOR as security.

The trouble with this is if you try to sell your PPOR and your IP had dropped in value, then the lender would probably not release the security unless you reduced the IP loan.

A way around this is to borrow some extra cash on the PPOR and then use this as deposit on the new IP. Both loans will be totally separate and can even be with different banks. The interest on the deposit borrowed against the PPOR should be deductible – and you should use a separate split loan to keep this separate from the non-deductible portion.

Yes, but it may be even worse than you think. CGT would probably apply as well as

What has he done with the excess money borrowed? if he has used it for personal expenses then the interest on this portion borrowed will not be deductible.

Furthermore, if he has used trust assets for personal expenses then he may have breached his various duties as trustee of the trust and/or possibly the Corporations Act if there is a company as trustee.

Propertyboy, sounds like a bot of a mess you have got yourself in. You were claiming in another post that your parents were wanting to claim this as an investment property. Are you sure your name is on title? and is it you only?

If they want proof of you making a payment (and I am not sure why they would want this), then you will need to show funds going from your or your lender to the person selling. The loan agreement will really only prove you borrowed the money and may not satisfy them.

I would also suggest you try to deal with the OSR in writing, that way it is harder for them to brush you off and they need to be careful how they respond.

GOM, I don't understand??? I am only paying less than $200 per month from super. I am not salary sacrificing