Hi CJ

Yes, you can have a loan split loan with one being PI and one being IO. But each loan will need to be in both names. I am not sure how the ATO would consider things, but think each person would be half owner of each loan.

I think St G is one of the few banks that will allow different names of sub accounts on their portfolio product.

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I would suggest similar, except a IO loan with a 100% offset. Saves teh same interest, but allows you to use the funds saved for whatevber purpose without tax implications.

Also I suggest you look into the 6 year rule. Move into the place briefly and establish it as your main residence. Then you may be able to avoid CGT when you sell.

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CT

The unit holder does not lend money to the trust, but buys the units.

There are various HDT deeds and various ideas by different accountants. Some require all the income to be distributed to teh unit holder (to justify the deductions) but others still allow the income to be distributed to the lowest income earner.

The trust doesn’t have to wait for the unit holder’s loan to be paid off before borrowing more – most loans will be IO anyway.

I think if the ATO does get onto HDTs there won’t be mush of a problem as they can still function has a dsicretionary trust.

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B

Interest is only credited monthly on most loans. So you can only pay it monthly. However, I suppose you could put an equivalent into the loan weekly, and this should save interest.

But if you are putting your money in a 100% offset account than getting your money in their quicker will result in interest savings without having to worry about paying into the loan.

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For starters you can have a look at
The Tenants’ Union of Queensland.
http://www.tuq.org.au/

Tenant’s unions advice tenants of their rights, so you should be able to find what the correct procedure is from their brochures.

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Beverly Hills is a good area.

If you keep the property you can buy out your girlfriend (not refinance). Have you spoken to a solicitor? Transfer of property on the breakdown of a relationship, whether defacto or marriage, may result in no stamp duty payable.

Once it is yours you can then look at renting it and claiming expenses while living in your parents cheaper property. Under the 6 year rule you may also be able to sell up to six years later without CGT.

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Hey Richard, you forgot the “D”

Hybrid Discretionary Trust

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https://www.propertyinvesting.com/forum/topic/26702.html

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Why do you need a LOC for expenses? Probably only would need one if you are spending more than earning – living off equity.

Generally an offset account is good as you can place all spare cash in there. This reduces interest – get the offset against your homeloan.

If you have equity in your home or investment, you can set up a LOC to access this. But only use the LOC for investment purposes.

You then draw on the LOC for all investment expenses and pay only interest per month. eg if rates are due borrow from the LOC to pay the rates.

Deposits for further investments can come from the LOC.

You should not take any investment expense from the offset as this means more interest on your home loan which is not deductible.

You can also use a credit card with an interest free period (with points too) to pay all expenses. This means your spare cash stays in your offset account longer and you save even more interest.

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Hi

Yes, but I am not sure how it would differ to owning the car in your own name – you could still claim it anyway.

Tammy, why have you done it that way?

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