Hello Mark

It is easy to change a trustee, just a minute will do I beleive.

However, if you have loans in place the loan will have to be redone, and the title to the property will have to be changed to the new trustee. But I beleive there is only a nominal charge for this at the Land Titles Office. (LTO).

Also you would need to probably get some legal advice, especially if the trust already owned assets. In some cases changing trustees may cause a resettlement of the trust. This means a new trust is considered to have formed. If that happens, then CGT and stamp duty may be payable on all the assets held by that trust – just as if one trust sold them to another trust.

Also, having a corporate trustee on a hybrid can make things a bit more complicated when it comes to finance. This is because the title will be in the company name, but the loan needs to be in the unit holder’s name. Some banks have a problem with this.

Terryw
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Hi Mancityfan

You do not need a contract for equitbale interest. Just think of someone married, but the property is in the husband’s name. THe wife will have an equitable interest in the property due to her relationship to the husband.

Also you could have lent money to the owner of the land, have a mortgage over hte land, and I think this would give you an equtiable interest.

But I am not a lawyer, and haven’t studied this – but would like to!

And another point, a option is a contract. (in most states you only have stamp duty on the value of the option contract, not the Contract of sale, when buying a option)

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I’ve just seen a family with big problems at least partially caused by a broker. Since there were 4 family members wanting to buy their house together, the broker suggested they use a company. Unfortuantely they did. So for the past 10 years they have been paying an extra $7,000 pa in land tax, and now when they are going to sell they will be up for a huge tax bill – purchased for $300,000 selling for $1,500,000!! probably around $360,000 in tax unnecessarily. All because of the broker’s suggestion.

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Hi G.

Don’t get too excited yet!

Some points to consider:

1) In this case, the developer has probably increased the purchase price so he can give a bit back to you.

2) It may be tax free if owner occupied, but if investment it would need to be taken into account when you sell for CGT reasons.

3) Will the developer let you chose the bank and valuation company or will they control the valuations – ie get a friendly one?

Valuers are well aware of rebates, and take these into account. If everyone is getting a rebate, it will probably value in at the amount less the rebate. So will they sell at this price if the value comes in lower than expected?

It may still be a good deal, but be careful with buying off the plan in this sort of market.

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I have one of my tenants on a lease with rental increases linked to the CPI rate. I have always used the national rate, never even considered the state CPI rates.

An extra 1.2% on a $400 per week rent is only $4.8. So there is not much point in digging your heels in if it is going to piss off your tenants – I think anyway.

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Just distribute the amount to yourselfs so that you pay no more than 30%, and the rest to a company which will pay 30%.

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Might be better to buy the property if she will sell it to you. That way you can control things. There are a lot of bad advisors out there, so I understand your worry.

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Hello Chelley

Which state are you in?

For NSW http://www.tenants.org.au/resources/tenants_rights/tenants_rights-Chapter-5.html

For VIC
http://www.tuv.org.au/search.aspx?SearchText=bond

Seems like you may just need to make an application to the rental bond board. The onus of proof will be on you to prove the carpets need replacing or cleaning.

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Hi Brenda

I thnk it all depends on when you purchased the property. The rules changed a few years back, and now depreciation gets added back. I am not sure on this as I have not sold anything since the rules came in.

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I beleive that Liberty financial would do it on work cover income (as long as the income and LVRs etc stacked up). 6.94%

Terryw
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