Hi

You don't have to pay back any tax benefits if you move back into the property. If you were to move back in and out again, then you could rent it for 6 more years and still have it classed as your main residence and be CGT free.

I suggest people just establish LOCs on existing property to 80% LVR, then use this for the deposits and costs of the new properties with each new property getting its own 80% LVR loan. The LOC (Line of Credit) can be used to pay ongoing expenses and  possibly any shortfalls on the interest for the other loans.

As you wife is not currently working it would be good to not have her guarantee any loans – no point as she has no income. If she guarantees loans then you are adding risk unnecessarily and are reducing her borrowing capacity. If she is a trustee, maybe look at removing her – but talk to the person who set it up as this may effect beneficiaries.

Do a few loans with you guaranteeing, and then maybe set up a new trust with the wife taking on new properties later. You both should be able to benefit from each property as you are related.

All loans should be IO, and maybe you need a 100% offset account on one loan. Use the offset account to store any spare cash, don't pay off loans.

To maximise borrowing capacity look at using the big banks now, don't use LMI. This will enable you to get more No Doc loans down the track.

Also if you set up a large enough LOC, you can pay cash for properties and then mortgage them after settlement. This way the bank will not be limited to lending based on contract price. So if you purchase under valuer you may be able to end up getting a higher loan.

eg. Buy for $80,000 cash. Then apply for loan. Bank values it at $100,000 and you get a 80% loan = $80,000. You release this $80k into the LOC and repeat the process.

And have you thought about keeping the land and building on it? If you sell you will have various costs and then stamp duty again when you buy a replacement property.

Common problem. Try a staple remover.

I don't think you can generally claim courses. Do a search on the legal database of the ATO site.

Hi Peter

This is a complicated area and you will need some expert advice.

If you change names after sub division, then you will have stamp duty issues – and maybe CGT. Maybe even GST issues too?

There is a way around this, aparently, in some states. You draw up a deed of partition so you each x% each of the original block. Then when you subdivide, as long as the % ownership remains the same, you may be able to avoid stamp duty.

If you are going to rent the properties out initially, then you will probably have CG applied to this period – when you get the sub division, the value could increase a fair bit which may make your CGT higher if it is a rental during this period.

If you have owned a property before, then I don't think your son could get the grant if you are on title.

Maybe to minimise CGT, your son could move into the property immediately after settlement and establish it as his main residence – then rent it out. He may be able to get the CGT exemption on his share.

Debt is not hereditary. They kids will be left with nothing, but maybe assets left in other trusts.

Hi Elka

You could take your loan to the max by splitting it with the new loan being separate then the existing – this can be IO or LOC. That way when you take the money out if can be separate from the other non deductible loans.

Is that what you are asking?

Sounds like you maybe locked in. You may only be able to get out if they let you, or if one of the conditions are not met. With property purchased off the plan there are often clauses in the contract which state that if the title is not registered by a certain date, then either party may pull out without penalty and get their deposits back. If the price has risen and the blocks are selling good, the vendor may even be happy for you to pull out as they can resell for a higher price.

Another option is to onsell the land before you settle. You still have a year and a bit left, so it will probably go up in value before then, and you may even make a small profit.

Only approx 5 acres of your main residence is exempt from CGT. You are also required to move into your main residence as soon as practical after its purchase. So I think your parents will be up for CGT, but there may be ways to minimise it fi they lived in the shed, or maybe even intended to. Speak to a good accountant or three.

I guess a lot of people don't realise they could end up in the negative in the end when GCT is taken into account. Many never intend to sell and just wsh to live it up till death.