It works because with a 100% offset you are not actually paying down the loan. So when you move money in and out of that account the loan is untouched.

My answers:

a) you can. Bear in mind ASIC records are publically searchable.
b) Depends what your trust is doing. If residential property rentals, then there is generally no need.
c) Depends if you register for GST
d) Normal building insurances. If running a bsuiness you may need professional indemnity and public liability. If running rentals, maybe landlords insurance
e) Company will need to do a separate tax return as well as the trust needing to do its own return. Company return is usually easy as there are no transactions – Trustee company shouldn't do anything other than act as trustee.
f) not normally, but it depends on what business your trust does. If it manages its own property, then none needed, but if it manages other's properties then you would need a real estate licence etc.
g) 1. Why have 2 and double the risk?
h) excel is all that is needed.
i) Depends on the business. If you will be getting calls, then you may need a dedicated line. For the faxes look as the various web based faxes on offer. You can send fax via email and receive via email.

I am not an accountant, so don't believe anything i have written without verification.

St G have been swamped because of their latest discount offering. At the end of the period it just reverts to the normal rate less the discount applicable. eg 0.7%,

If your in VIC I think you may need to have a child before you get the stamp duty exemption.

Pos, Don't forget conveyancing costs.

My answers:

1. Strange. A payslip or 2 should do. Maybe you are casual?

2.  Strange again. There is no stamp duty if you are buying your first home and are eligible for the FHOG and the value of the property is under a certain amount.

3. Reduced credit card limit will mean more borrowing power.

4. I disagree. IO would be better for many reasons.
 a) minimal repayments,
 b) better for tax reasons
 c) can still pay extra as if PI and then revert to minimum payment if need be
 d) using a 100% offset will save you the same interest

The only potential downside is you will accumulate more money in your offset and maybe tempted to spend it. Most banks allow IO loans on owner occupied properties.

5. yep

Doesn't sound like a good idea to me for the following reasons:
Costs
– Legals $1000 approx
– Stamp duty $4000 approx

Disagreements
– You want to sell, he doesn't
– You want to borrow for another, he doesn't

Risk
– He goes bankrupt = creditors can get half of your house!
– He gets divorced = His exwife and her new boyfriend move in with you!
– He decides he doesn't want to pay anymore, so you must cover the full loan
– Death, what happens if one of you die? could be squabbles between families.

Reduced borrowing capacity
You only may pay half the loan, but each is responsible for the whole

CGT exemption halved
– If you both claim the property as your main residence, that is only one CGT fee
– If you had one each as your main residence = 2 properties CGT free.

Hi

That is a good strategy. Remember you should have the offset account attached to any non-deductible loan first if you still have one. You want to save non-deductible interest first to be more tax effective. Once that is out of the way have the offset on an investment property.

IO loans have an initial period which is IO, and then they revert to PI. So if you chose 5 years IO, then after 5 years it will revert to PI over the remainder of the term.

There is always the retirement type loans – reverse mortgages

Get a second opinion on your borrowing capacity. Just in case