If you are the only person on the title, then you are the sole legal owner. The others may have a case that you are acting as trustee for their share. This can still be the case if there is no written agreement, but you will have to check with a lawyer on this.

If you are the sole owner, then you can leave your property to whoever you chose. But you may have this covered in the co-ownership agreement whereby you make a contractual will and agree to leave their share of the property to them or their family etc.

If it is a trust arrangement, then it is complex as the beneficial ownership of the property can remain the same and the trustee is just swapped if you die.

You cannot structure the loan in a way to claim the interest of the new PPOR. Whatever is borrowed for this won't be deductible whether you take it from the old loan or have a larger new loan.

If you had equity, what you could do is set up a LOC and use that to fund all IP expenses freeing up your money to place into the new home loan saving you interest.

Using a discretionary trust will give you the best possible asset protection, but you cannot offset losses against your personal income. If you are going to live in it, you may be able to get CGT exemption – but this is not available if bought in a trust.

Tax issues are complex as you are dealing with the tax laws of 2 countries so you will need a specialist to advise you on this.

This will be complex. You need to speak to a lawyer and probably get an agreement drawn up.

You could transfer to a trust, but you would be up for stamp duty again. Doing a co-owenership agreement may be easier abd you can work out an arrangement on who pays what and who gets what on the sale. Can also cover death – but as you are sole owner your property will pass to your estate on death and then distributed as per your will.

Some potential issues/problems
– what if you go bankrupt? How do you protect the shares of the other parties?
– Tax. How can the other parties claim any negative gearing etc – if applicable
– Equity – what happens in the future if one not on title wants to get access to some equity (can cover this in the agreement)
– Disputes.
– Exiting. What if one person wants out? How is this acheived and how much do they get, do the others have to buy there share etc?
– Risk. If things go back it is the title holder that gets hit.

The ATO considers any redraw like a new loan.

So the interest on this portion won't be deductible in the future as the purpose was personal.

You would basically have to buy her share of the house – and pay stamp duty. She may also have to pay CGT if it is an investment property.

Maybe you should just try another lender?

Yes, very interesting isn't it. It is hard to get money out of a dead person!

No one is going to enter into an open ended contract so you will not a time frame. You could ask for a long settlement, maybe 6 to 12 months with the possiblity to settle earlier, or you could possibly purchase an option and just work out some aggreeable terms between yourself and the vendor.

Yep. sounds like a good strategy. Should be no CGT and no agents fees etc and your family gets to keep the property while maximising tax deductions and reducing the loan on your new property which will not be deductible..

why a 50/50 split? If you only sell half, then you may save stamp duty, but you will only release as half as much you possibly could and your investment may be positive geared..

Here is something I just found which I saved ages ago:

Compound Interest on a Line of Credit Facility

Monday 27 November, 2006 The Tax Office has accepted that a deduction under s.8-1 of the ITAA97 might be allowed to a borrower for compound interest incurred on funds borrowed under a line of credit facility in order to acquire an income-producing asset. This may be the case where the facility has two sub-accounts and one of them is used to acquire an income-producing asset, and the other is used for private purposes. The situation envisaged is one where there are no fixed minimum principal and interest repayments required by the lender, and the taxpayer makes no payments off the investment sub-account until the private sub-account has been repaid in full. It may be the case, however, that Part IVA (anti-avoidance) could apply where the arrangement has the features set out in paragraphs 16 to 19 in TR 98/22.
From http://www.taxpayer.com.au/oursay/news/enews_comp_int.html