Yes, just set up a new trust. If necessary the income can be distributed to the unit trust.

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With borrowing under a unit trust structure, lenders will usually require all unit holders to guarrantee the loan, each being jointly and severably liable for the whole debt. If there are several people, then this can get very messy, and risky- what if the others stop paying?

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If using a LOC on your existing home, then you are probably paying all income etc into this loan. Just becareful if you start using this for investments as it can have serious tax consequences if you mix investment and non investment portions.

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Overall, it wouldn’t matter which property’s loan you put the money into. Your net tax position would be the same. Maybe putting it into a 100% offset account?

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A wrap is just a sale, with a bit of a twist. I guess how long it takes depends on how good you are at onselling. Management should be less hassle than a normal rental as you don’t have to worry about repairs, etc.

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You could possibly consider offering a precentage discount on the market rate in x years time in return for higher rent now.

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Very good, but where can you buy land that cheap!?

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No, there is no difference. Don’t know what you mean by being charged on home owner mode. I don’t think there are many lenders out there these days that charge differently for owners and investors.

What the ATO looks at is the interest charged.

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If you add someone to the title, it is the same as selling. Stamp duty will be payable on the percentage sold, and CGT would apply. Even if no money changes hands, the ATO would require you to pay CGT as if the property had been sold at market rates. Same with stamp duty.

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Hi Toni

Yes, can buy shares in a trust. Though there are special rules with regards to dividends (family tax elective).

If you are buying a property, the trust must be set up first. Otherwise you will have to pay stamp duty again when transferring it to the trust.

The title goes in the name of the trustee – which may be an individual or a company.

Can buy in different states using a trust.

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