You should get some legal advice on the consequences first and decide how the property will be owned – JT, TIC in equal shares, TIC in unequal shares.

Then egage a conveyancer – which may be the lawyer you used above.

sister will pay the stamp duty on the value transferred to her.

It will be a CGT event to you and/or husband who are transferring. If your main residence an exemption may apply, if not CGT.

Before you do all the above best to get the pre-approval in place as if the loan cannot be changed you cannot transfer.

that is like asking “what should I eat for dinner”

It depends is the best answer.

In that case you would want to borrow as much as you can and you should get some tax advice about how to maximise the loan (in conjunction with advice from your mortgage broker). I don’t really understand what is going on from your post.

Guarantor

Why do you need to contribute $20k? Is it because of servicing or because of security?

It could be CGT exempt for your daughter – but the rest of the owners will be liable for CGT – if there was a gain.

Taking money from redraw is new borrowings. The purpose of the original loan was purely to acquire the property (assuming you have made no increases and never redrawn). If you redraw the purpose of that new loan is to pay interest. If the interest on interest is deductible then it all relates to the same purpose – the property. But if the interest on interest is not deductible you will have 2 purposes. One deductible and one not.

It will become extremely messy to work out the portions if you do more than 1 redraw.

If you redraw and buy some personal items it would be even worse.

SB – have you had tax advice on number 2?

This would involve borrowing to pay interest. Interest would be deductible under s8-1 normally, but considering the ATO’s ruling on this they may apply Part IVA to deny the deduction.

Also from a loan point of view there would be few lenders that would allow a loan to capitalise like this without it triggering a default.

Asset protection is legal advice. See a lawyer. Accountants dont know about various aspects such as the bankruptcy act conveyancing act and other legislation as well as the laws of equity.

You can have good asset protection and be able to claim negative gearing benefits. But it will all depwnd on your situation and what you are trying to protect yourself from.

Actually I am not sure. I think the NCCP may apply to any natural person borrower.

No lender will lend baeed on rental income only where the NCCP applies as it would be a breach of the act.