Hi All,

My parents purchased two blocks of land 4 years ago as an investment, financing them through a LOC.

During this period of time, they have been able to make their monthly repayments and the balance has remained the same ever since they purchased them (in other words, they only pay the Interest every month; no principal)

Both blocks are financed through the same LOC.

They have just recently increased their LOC limit to subdivide one of the blocks (Block A) and are looking at building two small units on the subdivided property. The other block (Block they are looking at selling it and purchasing a larger block in the same area to also subdivide. (But at this point in time, only a priority if something attractive comes along on the market).

Unfortunately they are not in a position to finance the construction of the units, however on the other hand, I will be able to at the beginning of 2009.

The plan is to build one house on one of the subdivide blocks, sell it, pay off all debts and have one subdivided block and Block B debt free, allowing me to build on them at a later date or keep as land.

As my parents are in the low 15% and 30% tax brackets respectively, I on the other hand, will be earning $70k in 2009 alone.

I am confused in which direction to go:

a) Do they transfer the titles into my name, I pay the stamp duty and open a trust fund with my parents, me as the trustee and them as the beneficiaries (to minimize tax and to ensure that all expenses, i.e. interest repayments) are claimed for?), and register for GST

b) Engage in a joint venture with them, them providing the capital and me the equity (i.e. me pay the loan)?

At this point, I am still unsure the differences between a joint venture and a trust? I believe it hasn't been clearly identified.

c) Leave it as it is and me make the repayments as the beneficial owner for the construction of the units?

I am thinking the best way is to transfer the titles in my name and set up a trust fund, whereby i pay the maximum profits to my mum (15% tax bracket), my sister (15% tax bracket) and then to my dad (30%) tax bracket.

Does transferring the titles in my name mean that I just pay stamp duty and that they don't need to pay CGT? In other words, they can't claim for their expenses once they have transfered the titles in my name? They have accumulated $40,000 in expenses over the last 4 years.

What price do they transfer the titles to? The balance of the LOC so they can eliminate all debts?

Any advice would be greatly appreciated as I am very confused in which path I should take

Thanks