There are various rules which were designed to prevent losses being utlised by unrelated entities. Its a very complex area. Maybe you should search on the ATO site in the legal database for ‘trust losses’

Terryw
Discover Home Loans
North Sydney
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Your wife would have to be on the home loan as she is on title.

With the trust, the loan would usually need to be in the trust name with guarrantees from the trustee (or directors of the trustee company). So this would depend on how you have set the trust up.

ANZ have recently caused problems with one of my clients with a HDT – They refused to put the loan in the person’s name (director of the trustee).

It seems they sometimes do and sometimes don’t.

If you wish to maximise tax benefits, maybe yourself and your wife could enter into a loan agreement with yourself or your trust. SO you wboth borrow the money from ANZ and then on lend it to the trust/trustee. that way interest deductibility may be transfered.

Terryw
Discover Home Loans
North Sydney
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Richard is the right person

Terryw
Discover Home Loans
North Sydney
[email protected]

I’ve spoken to a few banks about this, Liberty, Adelaide and Bankwest have said they would do it (in theory anyway, haven’t actually tried). It may depend if the second mortgage will be registered.

Terryw
Discover Home Loans
North Sydney
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You can also get a copy online with the land titles office in your state. costs about $6.

Terryw
Discover Home Loans
North Sydney
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It would be best to call them in person. That way you won’t get the standard (and conservative) response.

If that was the with the licencing, maybe you could get around this by setting up 2 trusts with different trustees. Or just do 5 or less properties per year. Or just get the licence??

Terryw
Discover Home Loans
North Sydney
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FFComm

I am not sure where you get the 15% CGT from. A company/trust structure would not result in CGT being reduced to this rate.

eg. Assuming there was a capital gain of $100,000, with the 50% discount, the assesable gain would be reduced to $50,000 if it was distributed to an individual.

If the gain was distributed to a company, there is not discount. The company would pay $30,00 tax.

The individual may pay a maximum of 50% tax on this (or 48% plus medicare levy). So this $50,000 gain would become $25,000 after tax.

This equals 25%.

Of course, if the individual had a lower taxable income, then there would be a lower rate still, but not necessarily 15%.

Where did you get this rate from?

Terryw
Discover Home Loans
North Sydney
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Look for any arears, judgements, defaults etc. If you find any, ask their reasons, and maybe seek further proof.

Also look at how many credit cards are listed, and finance applications for radio rentals etc. They could be over committed.

Terryw
Discover Home Loans
North Sydney
[email protected]

Jarrod

Yes No docs would work, but may need a large deposit, low docs may also work if the person is willing to exaggerate their income.

Terryw
Discover Home Loans
North Sydney
[email protected]

One of my clients had a JV between 3 different groups of people. They had a unit trust, with a corporate trustee. The company had 3 directors. Each party then owned 1/3 of the units of the trust using their own discretionary trusts.

They could then purchase property jointly within the unit trust. If one person wanted out, they could sell their units in the unit trust to the other parties, without having to worry about changing the title to the property.

If two of the parties wanted to buy another property, then they could go jointly with ownership by their discretionary trusts, or they could set up a new unit trust.

One drawback is that each party would be responsible for the whole loan. This can hurt serviceability a fiar bit.

Terryw
Discover Home Loans
North Sydney
[email protected]