Don't know about the merits of charging yourself a high rent. You should be charging yourself a market rent. Higher rent means higher profits which have to be distributed – but I guess you could save tax by distributing to the lower income earners of the family. You would have to justify the rent if audited.

Pos, you would need a unit trust to claim losses – but borrowing to buy the units. But the ATO has already put out a tax ruling many years go warning about this. TR 2002/18 http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00144668.htm&pc=001/001/001/001&mnu=45485&mfp=001/005&st=&cy=0

What a question. it varies between banks!

Very hard to sell quickly. It would take at least 42 days (in NSW) if you sold it instantly. Probably another month of advertising at least. I guess you should allow for 3 months to 6 months to sell at a reasonable price.

Thats why you should keep some of your money in an offset account or shares, just in case of an emergency.

Yes it is possible with a discretionary trust. But the tenant would pay the rent to the trust, trust would then claim interest and other expenses. However, If there is a shortfall then the trust will incur a loss which cannot be used to offset personal income.

My guess is the ex would probably have lodged a caveat against Oz's property which would prevent him dealing with it further. Maybe she would agree to let Oz extract some equity, but this would be complex if she is on title too.

I think Oz may need to come up with a 5% deposit or look at a vendor finance type deal>

Sounds like a good plan. But get IO now. WOuld be good to have the offset too.

One major concern is the size of the unit. 30sqm is very small. St G is one of the few lenders who will lend for this type. So prospective purchasers will have trouble getting finance when you sell. This will limit capital growth and sale price – but should also be reflected in your purchase price.

If your existing loan is a low doc, it may be difficult to refinance at all due to recent restrictions. St G is probably the best bet.

Stamp duty is a state tax, so the rules vary from state to state. In NSW I think it will be levied just on the transfer value so no savings. In Vic in the past it was levied just on land value, but it may have changed.

Hi

don't  think you will find anyone. with no security, it is extremely risky for the lender – what if you refused to repay?

maybe you could look at vendor finance – where the seller can lend u the deposit.

There are a few old Tax Rulings on these. Do a search on the ATO site – probably from 4 to 5 years ago now.
I read them at the time, but forget what the result was now. I think you are only taxed on the profits as it is obtained, but you should check.