Probably true. You have to at least have the property on the market looker for renters to be able to claim. As far as I am aware.

Terryw
Discover Home Loans
North Sydney
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I agree with GP on the CGT.

Check out http://www.lawcentral.com.au for cheap trust deeds ($275).

Terryw
Discover Home Loans
North Sydney
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Interesting

Here is an example from 6packs link:

Example
Choosing to claim exemption for the land from the date of construction
Grant bought vacant land on which to build a new home under a contract that was settled on 3 September 1997. He bought his previous home under a contract that was settled on 3 November 1991.

Grant finished building his new home on 8 September 2000. He moved into it on 7 October 2000, which was as soon as practicable after completion. He sold his previous home under a contract that was settled on 1 October 2000.

If Grant wants to, he can:

treat the new home as his main residence from 3 September 1997, and
claim the exemption for his previous home from 3 November 1991 to 2 September 1997.
Both homes are also exempt from 1 April 2000 to 1 October 2000, the date Grant disposed of the old home. This is because the maximum six-month exemption outlined in the section Moving from one main residence to another also applies.

Terryw
Discover Home Loans
North Sydney
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I am not sure, but would think you would have to pay fringe benefits tax on food.

In certain circumstances you can give meal allowances to the workers. They can buy their own meals, but can fully deduct the allowance if spent.

Terryw
Discover Home Loans
North Sydney
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Ez Rent

can you tell use more on ‘hui’. I remember one of my friends purchased his car using money form a hui.

Terryw
Discover Home Loans
North Sydney
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If you are entering a partnership, then there are many ways to structure it such as Unit trusts, Discreationary trusts, company, or individual names. You should talk to an advisor on this to be sure on the best one. You may even need a partnership agreement to make sure everything is covered.

You do not need to set up any structures, but it would probably be better if you did.

Loans would depend on the structure. If using a company or trust, then the directors and/or trustees would be guarranteeing the loans. If your own names, then both partnership would be getting the loan. Eitherway, both each partner would be resposible for the whole loan. So if one stopped paying, the other would have to cover it. This eates into your serviceability.

I have purchased property in a partnership before. Once went ok, but the other time the other party decided they wanted out and I had to either sell the property or buy their share. Which was nothing major, just a hassle really

Terryw
Discover Home Loans
North Sydney
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1. Setting up companies and trusts will not affect your borrowing capacity as you will be required to personally guarrantee the loans. So the banks will assess the deal on your personal income. There is no difficulty in borrowing using a brand new trust or company structure.

2. There would be not advantage, from a borrowing point of view, in buying the property as trustee. It will still have the same amount of equity available whichever name you bought it in.

3. Holding no property in your persoanl name may work against you (slightly) as you will have no assets the lender can go after if it all goes wrong. But you would still be in a position to give personal guarrantees.

Terryw
Discover Home Loans
North Sydney
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Banderos

I can see nothing wrong with trying to minimise tax. I do not think you would be queried on your purpose in setting up a trust – it is done every day of the week.

But I am not an accountant!

Terryw
Discover Home Loans
North Sydney
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If you are applying for a full doc loan, then you would need to show full tax returns for the trust and Profit and Loss statements. If you guarrantee the loan – which you would have to do in any case, the bank may still want to see the icome statements for the trust if you are relying on this income to service.

Terryw
Discover Home Loans
North Sydney
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Terry

I think Aussies would have to pay tax in Australia on income earned in NZ. So even tho there is no CGT in NZ, they will have to pay CGT in Australia on any gain. Hence the benefits of a trust – to reduce tax.

But I am not an accountant so may be wrong.

Terryw
Discover Home Loans
North Sydney
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