Generally if you make an offer and it is accepted then you have a binding contract. However, for the sale of land this contract can only be enforced if it is in writing. There is no requirement for a 'proper' or formal contract. Just writing on the back of an envelop could be enough to satisfy the writing requirement.

If the tenant has been there 20 years she is probably paying under market rent and is unlikely to leave in a hurry. I suggest you do some research and see what similar units are renting for and put the rent up. No use in you giving money away – this is holding you back financially and may be reducing borrowing capacity as well.

I think in QLD Land tax is assessed per structure still (but this could change). So search the OSR site and see what you can find out.

Jadlak

What you could do is to set up a separate LOC. Use any property that has equity, it doesn't matter which.

You then use this LOC to pay for all investment expenses. ie you borrow to pay expenses such as rates, insurance, water etc etc. This will free up your cash to pay into your offset account on your PPOR. It may free up a few thousand per year. Not much, but it all helps. you then pay the interest on the LOC each month – but don't pay it down. Net result is the same interest in total, but increasing tax deductions.

Taking it a bit further, you could borrow a bit from the LOC to fund the interest on your investment loans if you have a shortall. This will free up more money.

Then further still you can start to capitalise the interest on the LOC so that you can divert more funds to your offset.

And, even further, you can put all rent in your offset and use the LOC to pay the investment loans in full.

These are dangerous strategies and you need to work them out with a good tax advisor or you could get caught out by the ATO. But it is possible to do. Capitalising interest is allowable and borrowing to pay business expenses is allowable – even if you have enough cash to pay for them. You just need to avoid the ATO classing it as a 'scheme'.

What is the purpose the funds were used for? If the husband lend the wife money to pay down the investment loan, then this is just refinancing debt – so should be deductible, but his net result is the same. If any of the excess funds are used on the PPOR loan then the purpose is private and the interest on this portion won't be deductible.

In most states it is possible to add a spouse to a title without stamp duty, but this is usually only for owner occupied properties sp probably won't apply. So you would be buying the dad out, basically, if you want him off and you on. This means stamp duty for you and CGT, possibly, for the dad. Also legal fees and loan exit and app fees again..

Probably best to consider leaving it as is and working out how to get at the equity. This can be complicated because of the thrid party. You don't want to cross collateralise the next one with this one in any way. So best to wife and dad get a LOC and lend you the deposit for the next purchase. Then you get a 80% LVR loan on its own. You can work out what names for the next one, which will vary depending on your situation. MAybe look at using a trust too.

What if you make a mistake?

You are making such an important purchase, why risk it?

On the other hand, it could be a good way to learn.

I think you may need a few trusts. Maybe a company for the business and one discretionary trust for property, and ideally another one for shares.

Hybrid Discretionary trusts are still around, but they are virtually useless now. To get the tax deduction against your personal income your deed will have to be worded so that you the unit holder must get all income and capital gains. So not tax flexibility and no asset protection as the units are property and potentially up for grabs. you could also end up paying CGT twice if the units are redeemed by the trust – you pay cgt then and the trust will pay when it the property is sold as well.

Trusts cost from around $200 on the net if you do it yourself. Accountants may charge around $1000 with some advice and apply for the ABN and TFN for you, and GST registration if needed. On top of this you need to add stamp duty in most states – nil in QLD i think, but around $500 in NSW.

Company registration costs $400, approx for ASIC fees and an accountant will add a bit on top for advice.

It is worth paying a bit more for the advice as you can easily stuff up if you get it wrong.

It is best to use one director or one trustee, (if not using a company). As there is some risk involved you should probably use a company as trustee.

You  may still be able to use a spouse's income for servicing if they gain a benefit from the loan. being a spouse is often enough, or the spouse can be a named beneficiary in the trust or a sharehold of the trustee company.

It is probably best to borrow as much as you can and keep your cash for emergencies (ideally in an offset).

You can only amend tax returns for up to 4 years I think. Better check with an accountant on claiming the costs – may be able to claim against income if you intended to build an investment property, or maybe off the CGT. Not sure.