Hi Angela.

The problem is that the property is owned by the company and the loan needs to be in the name of an individual to get the tax deductions. This makes it a third party loan which most lenders don't like these days. St George was one that did allow it.

You could probably still use your trust as a standard discretionary trust by buying in the company name with the loan in the company name too. You just couldn't offset any losses against personal income.

Have you encountered any problems with the claiming of interest on the loan used to buy the units of the trust?

If i had a home loan I would put the $150,000 in that, and then reborrow it. Reduce non-deductible debt first. Then borrow it to invest into something else – using 20% deposits from this money, then borrow to buy some property and maybe put some into the share market when it bottoms – with a margin loan (with a conservative LVR).

If you were absent from the house less than 6 years and you had no other house that you counted as your main residence during this time, then you may not have to pay any CGT at all. Check with your accountant.

I think it may depend on the wording of your deed. If their is no appointor, is the trustee validly appointed as trustee? maybe not.

You are playing it dangerous by not getting it fixed properly – what happens if you find out it is not set up properly after you have the property for a year or so? It could cost a lot more than $900 to fix – especially if there is a resettlement.

At the very least I would ring the lawyers for the trustdeed website and ask them – even if they charge you it should be worth it.

Or, maybe just set up a new deed and play it safe. that would be cheaper than the $900 lawyer fee.

Keep the old one for future – you may be able to use it down the track after you have had time to research.

There is also a possibility the lender may not accept the deed.

Tell your friend to go to one of those free legal advice centres.

If the loan is owner occupied it will fall under the Uniform Consumer Credit Code and he/she will have more protection. Maybe look that up on the web (UCCC).

Refinancing is very difficult at the moment if you are in arrears.

I don't know, but think….

The vendor is the legal owner until settlement. The new purchaser has an equitable interest after exchanging contracts. Both of you have an interest and therefore should be able to be covered by insurance separately. If damage is done to the property prior to settlement then the vendor will be liable as they have contracted to provide you with a property in a certain condition.

So I would think that the vendor's insurance should take care of any damage prior to settlement. If they can't or won't then you may be able to make a claim under your policy.

There is a yearly levy for carpark spaces in the CBD and some surrounding areas in SYdney. I recall hearing in the recent mini-budget that these levys had just been increased from about $800 pa to $1200 pa

Very good Ajax.

thanks

Wouldn't it be more beneficial to get as much income into the trust as possible – then you can distribute this to the lowest tax payer beneficiaries. You could just distribute to yourself anyway.