I was going to suggest you go overseas too. I have been to the dentist in Thailand, and they are very professional and clean too. One of my mates also went to the phillipines recently to get some dentail work done. He said it would have cost him $20,000 here, but only about $4000 over there.

Transfer duty on share trasnfers is a state based tax, so things will vary from state to state. Your best point of research would be the office of state revenue in each state. I think you will find that in some states you will be able to avoid stamp duty on the transfer as long as your company would not be classified as being "land rich". In NSW it was around $1mil in value before the land rich limit kicked in – this was a few years ago too. I don't beleive the debt on the land was taken into account either.

Lets break things down a bit.

You want to sell your land to a trust. That should be ok, and the trust will be able to borrow the money to buy this from you. Since your trust is borrowing 80% it needs to come up with another 25% for deposit and costs. You could lend the trust this, or do some vendor financing. The trust should be able to claim the interest on the land if it intends to construct an investmnet property.

On the sale of the land, at market rates btw, this will release some cash into your hands. you will probably have to pay CGT on this. And the trust will have to pay stamp duty.

If you are going to purchase your new home through the trust structure, then you need to be careful as the ATO may scrutinise the structure. So get some proper advice and and make sure you can prove market rates etc.

If you are going to purchase in your own names, you could live in it and establish it as your main residence, then later move out and still be able to claim it as a CGT exempt asset.  This may be preferrable to owning it through a trust as the long term CGT savings and land tax savings should be more than the short term tax savings by claiming the negative gearing benefits.

be very careful about contracting via your trust too as there are various rules you must meet to avoid the alienation of personal service income rules. eg if 80% of your income comes from one sourse you could be taxed as if the income was your own.

So i would suggest you pay a good accountant to set things up properly for you. Or you could be left with a trust with a huge loss which may be unable to be offset against your income from employment.

hi Jebro

Maybe is is just a revenue raising exercise!. Funds contributed to either structure. could be a loan to the trust,

Blueheeler,

What makes you think you cannot claim the interest on a LOC?

Having a 100% offset account won't help with any shortfalls if the person is low on cash either.

The best place to look in these sorts of situations is the tenancy union in your state. These are set up to protect tenant's right's and usually have things clearly spelled out on their websites. Check out QLD's here:
http://www.tuq.org.au/ff_eviction.asp

Yes, St george may even do 100%. They have their own mortgage insurers and can do things other banks cannot.

Hi Snowflake

Sounds like you have a loan with your parents and you will be refinancing that loan, so you should be ok.

It should not matter as long as you are charging market rates. Maybe you should protect yourself by gathering evidence of market rates at the time of renting in case the ATO comes a knocking.

Rental management fees vary from state to state. In Vic, it seems they like to charge around 7 to 8% for management. I havent paid any advertising fees (this may vary depending on area with no need in high demand areas). In NSW management seems to be around 7% (lower maybe because of higher rents?). No advertising fee here either. The leasing fee seems a bit high. Some try and charge 1 weeks rent, even that seems excessive to me.