Hi Frances

Have a look at the relevant NSW legislation, The Duties Act (1997), s67 and in particular subsection (1)(c)
http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s67.html

You may be able to do it in NSW if the property is owner occupied etc.

It can work out more but lots of hassle – eg. who manages it all, will you live there too? What about energy bills, cleaning etc. You will probably have to cover this out of your rents

business is high risk. Why buy one when you can start your own cheaply?
I am not too keen on franchises tho you can borrow on some of the bigger named ones.

I have one friend who started a business from scratch and made more than $1mil profit in the first year with little outlay. So you can make money if you have what it takes. Some people have the right personalities – good sales people/good talkers.

Hi

To get a loan you need to demonstrate serviceability, so with increasing the loan you will have t prove you have the income to service.

There is a section in the tax act called part IVa whereby the ATO can deny a deduction if the scheme had a dominant purpose of reducing tax. There was a case called Harts where they capitalised interest on an investment loan and poured all of their income into the home loan first. The High Court said this was a scheme to get a bigger deduction. However, In the same judgment it was stating that capitalising interest is allowable- you just have to set it up so it doesn't look like a scheme. Even if you have the cash available you may still be able to borrow money to pay interest – businesses do it all the time. Just be careful and run evrything by your accountant.

If the loan was used to purchase the trust's property, then the trust should be claiming the interest. If you lend money to the trust, which is possible, the trust should be paying you interest. This interest would be income to yourselves and would be taxed – assuming you had other income.

If you use a unit trust or a hybrid you may be able to borrow to buy the units and to claim the interest yourself, but using one of these structures will lose you the flexibility of distributing income to the lowest income earner.

So you want to sell a property to buy another?

I would worry about selling now – at a low point in the market. Selling costs, buying costs on the repurchase, the loss of the main residence CGT exemption and land tax exemption.

Why not just access some of the equity and then use this as deposits on new properties. AS long as you have the income, you should be able to get a loan up to 90% of the value of the property (less existing loans = money released).

You could also look at moving out and renting and negative gearing your place – save tax, and still retain the CGT exemption for up to 6 years. But this is a lot of hassle and will depend on the figures and your lifestyle.

You had better tell them you are not proceeding or you may be locked into a binding contract. hurry and seek legal advice or you could lose a lot more.

Stamp duty would make this expensive. But these days without an income it is difficult to borrow.

fraud is a dishonest act done with the purpose of deceiving. Rebates are offered all the time for the sale of many products – i just bought a laptop with $100 cashback after settlement.

If you tell a lender you are buying for $X, but are buying for $Y, that may be a different thing. You are deceiving the bank into lender more – and obtaining a financial benefit.

I know of no lender that will lend based on higher of valuation or purchase price. There were a few smaller private type lenders who did this before, they may still do so, but the lvr was around 70%