There is a tax ruling on a trustee or beneficiary of a unit trust renting a property owned by the trust. can’t find the reference at the moment.

If you are using it as an office, you could calim part of the expenses relating to that area used. It doesn’t have to be zoned commercial. It you were renting it out to a third party (eg Doctors surgery etc) , you may have to comply with council requirements.

Terryw
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Dan, it can be done

but it is hard to get someone to sell you an option without offering a high price. I know of someone that purchased a house for about $380,000 a year ago. then a developer came along and offered $1mil in a few years if they gave him an option and allowed DA application etc. They took the offer!

Terryw
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No Job, plus only one source of rental income = too rental reliant. What happens if the property is unoccupied for a while?

To get a low doc, you would have to declare some sort of income. ie he would have to lie.

a 100k deposit on a $300,000 property makes a LVR of 67% so he is close. (needs to factor in closts as well).

Terryw
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Hi

There is RAMS no doc at 7.09% with 65% LVR too.
And, there will be a new no doc loan coming onto the market shortly. 65% LVR at 6.95%pa.

Terryw
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007

Don’t forget the mortgage insurers won’t approve loans for many country areas, so they may have to come up with at least 20% deposit plus costs. Depends on where the property is located, larger regional towns may be ok.

Terryw
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I would definitely use a trust. The absolute maximum tax you will need to pay will then be 30% (by distributing it to a company).

And if you do it often enough, you will lose the 50% CGT discount as the ATO will class teh properties as trading stock. You should get away with it for a while!

Terryw
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I didn’t read the name properly! No Cash = no loan.

Unless you can borrow the (20-40%) deposit elsewhere.

Terryw
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Is she your legal spouse? If you are separted it should pose no problem as long as it is all done at market rates. But even if you are not legally separated it may pose no problem. Give the ATO a ring and ask. (also ask for the name of the staff member you talk to).

Terryw
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Crashy

Land tax is 1.7% in NSW, tax free threashold is $261,000

Terryw
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easy

Your uncle simply gets a loan increase (a split or a LOC) and lends you the money. That is the safest way for your uncle to do it. That way his home is not on the line. And it won’t affect your borrowing capacity.

Terryw
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