You will have to work out the cost base and then deduct this from the proceeds. If negative it will be a capital loss

jambv wrote:

I have 2 properties on the one loan. Loan was 500k split evenly between the 2 props. I’ve now sold one for 350k & the bank wants to take 340k instead of 250k- 5 years of payments. What are my options?

Your options are limited as this is probably due to serviceability. Under the agreement you entered with the bank they would be entitled to retain the proceeds of any sale if they think you can no longer afford to repay the remaining loan. They have a mortgage and will only release the property if you accept this.

But see a broker quickly because you may be able to refinance.

This mistake of cross collateralisng loans will potentially cost you dearly.

Split the IP loan into 2, with the original loan interest being deductible and the new portion not.

Loans generally don’t effect CGT. The interest on the loan for the PPOR won’t form part of the cost base of the IP even if the IP is used as security for the loan.

Just think of the trust as a separate person – John
John is buying a property so john would pay a deposit. There is no need for john to give you the money for you to pay the deposit, he should pay his own deposit.

if you pay the deposit for John you are weakening asset protection. if the deposit is to come from you you would gift it or loan it to john so that he could pay the deposit.

The trustee could borrow against their property. If they pass away the mortgage would probably need to be discharged so the trustee will need to either pay out the loan or find other security or other sources of funds to pay out the loan.

2. never to an existing trust, consider a new testamentary discretionary trust in the will. Powers might include taking the mortgage of the existing trust over – i mean giving it a new mortgage.

Selling or gifing to the existing trust is going to cost money in stamp duty. maybe not a good idea.

You have to consider their capacity too – are they deciding all of this or are you?

Financial ombudsman look after companies offering financial advice and/or products – banks, financial planners etc. It is an external dispute resoluation service for members and their clients.

strata is not a financial product and they would not be a member of FOS so they could not assist. What we have here is just a plain old civil dispute.

You would think they would have tied to contact you.

I have a woman call me a few years ago who was actually bankrupted because she didn’t pay the strata fees for a couple of years. She was actually solvent but had some sort of dispute with the building management and refused to pay. She was served legal documents and ignored them. Next thing she knew she was bankrupt and her apartment was being sold. She quickly changed her mind and decided to pay the $9k or so owning. Except now the costs where up to around $50k because a trustee had been appointed. She was asking for help, but nothing could be done at that stage. She had to somehow pay out and come out of bankruptcy or lose her apartment.

Hari Yellina wrote:

Terryw,
The trust is my own company. We are small size businees with 100 or more employees. The profit gets distributed end of the year.
Thank you.

That doesn’t make grammatical sense!

The company is either acting as trustee or the shares of the company are owned by a trustee of a trust?

Either way you would have to supply the finnacials to a lender

THe law is clear. You contracted to pay a certain amount and you didn’t – you breached the contract. The other side incurred a loss due to your actions and they incurred additional costs which you should be liable for. They shouldn’t be liable for your actions.

What is there to change?

You cannot pay yourself a wage, only another entity can. If you set up a company but you own the properties how do you get the income into the company? Even if you do start a company you will be self employed so the lender will want to see the company financials.