Might be a good move.

She will possibly be able to save a little bit of tax by negative gearing (inc claiming depreciation etc). She could do this for up to 6 years and still claim it as her main residence for tax purposes (no CGT if she sells).

She will also get more centrelink payments (rental assistance?).

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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It seems that some govt departments can have internal guidelines which the public are not aware of. I don’t know how you can get around these. You had better talk to your solicitor.

Terryw
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North Sydney
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From a taxation view point, it would be better to put any cash you get off your PPOR and then redraw it for investments, rather than just paying it straight into the investments. You want to reduce non deductible debt asap.

But if the PPOR is not going to be your PPOR (or are you intending on mvoing back?) you should then put it off the new one’s loan.

Terryw
Discover Home Loans
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North Sydney
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Option 2 is not tax effective. You would be way better off paying the $150,000 into your home loan and redrawing it, converting it in to deductible debt while reducing the non-d debt.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Your accountant’s fees sound reasonable

Terryw
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North Sydney
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Yes you will be require to declare your worldwide income to the ATO. But due to the double tax agreements, you should not have to pay tax twice, and will therefore get a rebate for tax paid overseas. It will be a pain in the butt trying to work out how to fill in the tax return etc.

Terryw
Discover Home Loans
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North Sydney
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I think you shouldn’t have too much trouble, same employer etc.

I’ve put someone through ANZ like this and was OK.

Terryw
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North Sydney
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Cath

if that is the case, maybe your father could buy the property in his name and you have a separate agreement concerning costs etc.

If you go on title, then your income and situation will have to be taken into account by the lender. It still may be possible however.

Terryw
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North Sydney
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Good trust deeds can be setup for about $257 at http://www.lawcentral.com.au

The solicitor there is Brett Davies who is doing his Ph.D. in asset protection.

But if you want some advice etc, it may be better to get an accountant/lawyer to set one up for you. To do this it usually costs $1000 at least for the trust and then another $1000 or so for the company. Plus stamp duty, and fees for ABN etc

Terryw
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North Sydney
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Hi Reggie

I don’t know much about this area, but think if properly setup superfunds can lend money for property purchase. there are various rules that prevent the fund lending money to relatives, etc of the trustees etc.

Flipping properties in a superfund shouldn’t be a problem, superfunds only pay 10% CGT. But they may be just classed as trading stock, and income tax would be payable. Not sure of the rates for a superfund.

And I don’t think becoming a licenced financiaa advisor would be necessary to borrow funds from the superfund. (Don’t think it takes 3 years to become one either).

There is some stuff about super etc and property on this website:
http://www.chrisbatten.com.au

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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