Some solicitors also recomend a caveat be placed on the title of the property after settlement to indicate it is owned by the trustee in its capacity of trustee to the trust. This can help establish that the property was originally owned by the trust – in case of a future dispute.

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Option one would work, but lenders would only lend if you all guarranteed the whole loan. cannot have separate loans without this. Same with the unit trust scenario, bank will want guarrantees from trustee and all unit holders.

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They were probably worried about the quality of the property or the location, or maybe even asking about this for their own personal interests.

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Janus, I am currently in Japan and would like to know what your looking at. I feel now is the time to buy here as it looks like the 15 year decline in ppty prices maybe over. yields are good too currently.

I think you will have a hard time as mentioned above. Japanese banks will lend to foreigners, but only if you are a resident and have a job. Finance is very restricted here, and nothing like in Australia.

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Becareful. For taxation purposes, the date of sale is the date of the contract exchange – not settlement.

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I would just like to point out the above is from a New Zealand website.

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There is another interesting recent case, Ormiston v FC of T [2005] AATA 978, where a person had a property for 5 years without renting it out. The owner was still able to claim the interest.

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You mortgage the new property, the lender will give you a cheque or a LOC etc, and you can use this for the next one.

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If the bank forecloses, then they can sell your mortgaged property. If you were not cross collateralised, they would still chase you for any shortfall, but you would have the option of raising the money elsewhere.

Another point is, if you current lenders stops lending to you, it can be harder to go elsewhere if all your properties are tied up.

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If both are on title, then both will need to be on the loan, or a loan in one name only may be possible, but the other will have to guarrantee that loan. They could for example get a St G portfolio loan with splits in different names

The net result is both are responsible for the whole loan = hurts serviceability.

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