I don't really know, but I think it would be within his time limit. day 1 would be 29th of sept, and counting a long that would make 19th the 21st day. He left it close didn't he!

Becky, just be careful as there are some potential problems if not done correctly – problems that may only appear when the trust redeems the units or you sell the property years down the track

I agree that you probably don't really need cash, – just access to it if you run into trouble. Some people recommend you have between 6 -12 months of annual repayments available if needed.

I dispute that!

Tyson,

Some wrapees are able to pay lower rates than they would with a bank or other lender.

eg. Someone with a bad credit record would be paying up around 11% with one of the non conforming lenders, not to mention all the fees such as risk fees, application fees, legals, valuations, and exit fees when they want to leave for a cheaper product (one charges 4%!!!). Plus they will need at least 10% deposit.

Hi

You just have to document things carefully. what will happen is your parents are lending you money, and you can refinance this loan with a loan at a bank at a later date. Get a loan agreement drawn up and run it by your solicitor – your parents should probably take a mortgage to protect their interests. They would charge you a interest rate matching what they are paying their bank. So their interest from income will equal their deduction from interest paid to their bank. This will leave you with the interest to be claimed.

Maybe you can start off part time, keep your day job and ease your way into it.

You could sell the properties to your own trust, this way you can release equity, pay down PPOR and then get to keep the property too. CGT and Stamp duty will apply, but these costs have to be assessed against interest savings and tax savings.

You can also sell your properties slowly over a few years to minimise CGT. eg. one per year, or even 1/2 a property per year.

I agree with Elka

I believe that you may be able to elect to treat this place as you main residence under s118-145 of the ITAA.
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

You can only have one main residence at a time (except for moving between houses, s118-140 = doesn't apply in your case I think).

you could sell the old home without paying CGT, but you would then be up for CGT on the first 6 months on ownership of the new one.

So you will be liable for CGT on either of the properties for the period over the last 6 months – chose the one with the least growth.

I am no an accountantt

When someone dies a trustee takes over theiir assets and liabilities, their estate. They have to pay out all the debts and share the rest of their estate according to the deceased's will. If there is CGT to be paid it comes from the estate. If the estate doesn't have enough money left over, then I am not sure what happens – I think the estate just goes into administration. All the creditors would split up the proceeds, including the ATO, taking smaller sums.

I am not sure what would happen if you owned a property as tenants in common where the other person's share is passed to the surviving person, ie it bypasses the person's will.