Yeah if the Vendor doesn’t need the money now why not make it a longer deal. Maybe offer something like 8% over 5 years that way they are receiving passive income of $13600 p.a which may attractive to them and give a chance to restructure down the track. Lots of options and combinations it is just finding the right one!

I am investing in a project with similar numbers. What I have done to ensure that I am confident in the investment is:
Visit the area and get a feel for being on the ground
Research the attractions and prices of the area via the internet
Made sure I understand the sale process and likelyhood of getting my money back on time
Made sure I understand the process of becoming a shareholder, what is in it for the developer, myself etc.
Can my money be better used elsewhere? This a very good return but if the project goes for 3 years it isn’t as attractive.
What is the team behind the project, builders, accountants etc

So do all the Due Diligence and you’ll know if you should go ahead, good luck I’f be interested to see how you go!!!

Your capital gains wouldn’t be what you sell for less what you owe rather what you sell for less purchase price (and of course all the other incidentals) so your tax bill might not be as high as you think.

Not sure if this is right but this is my understand of selling to a trust in your case. Selling to a trust would be purely on paper so I imagine that you would have to sell at market rate, eg 165k and pay capital gains AND stamp duty on this, then you would sell to purchaser at around the same price, unfortunately the benifit is lost as your purchase price and sell price in this entitiy is $165k leaving with a gain of $0 and therefore nothing to distribute to the benificiaries.

Regarding the benificiaries having to sign a consent if they are over 18. Depending on what is written in the trust deed this may actually be so. I’ve been caught out so always good to know what the deed says and change if required

It will depend on the timing of your purchases. if they were bought post 1/7/00 you will be able claim the FHOG (as long as you qualify under under points). The below extract is taken from http://www.firsthome.gov.au check it out for more information

To qualify for assistance, neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.

I’m working at Springvale Cemetary doing subcontracting work on the lawns at the moment, think it is owned by a Trust of some sort. Huge place, 426 Hectares or so and growing, whenever an ajoining property goes up for sale they buy it!

Yeah you’ll have to keep coming up with the deposits as each deal is seperate.
Some ways to move onto your second deal
Use that $10,000 from the first deal
Save money from your job
Use profits from the first wrap to build up deposit
Find money partners. If you can do a deal returning 20% go 50/50 partners, you’ll have no money down in the deal and be able to do multiple deals and share the profits

Before buying something like that I’d be weighing up what else I could get for the some price in the area. It seems to me that for the same price in the same area you might be able to have triple the land on an older home. Obviously there are advantages and disadvantages on both options but make sure you weigh it all up and focus on the investment not the property

Maybe you should start a post that shows the numbers in the deals you have found and see if anyone is interested in being a money partner. There are different ways to go about this by either having part share in the deals or offering a return on their money. Eg The deal may return 25% p.a and you could give them 15% and keep the 10% with no money down. Other ways to help you out initially is to see if you can borrow a deposit from your parents. Banks like you to have money sitting in your bank for at least 3 months so if you can do this early it gives you more options. I’d also look into structuring and how you can use companies and trusts to borrow money

1) In most cases yes, it can be vital to get the structure right from the start to have tax advantages later and not to max out your borrowing capicity as an individual

2) Probably about standard, if you want to get out of it a bit cheaper at about $1400 for a company/trust structure I used http://www.espreon.com/ The extra $600 would be accounting fees advice etc. If you are not confident probably worth it

5) Yearly fees are ASIC about $220 and then accounting fees which really depends on how much work is involved. Expect at least $400 per year

This type of transaction is usually treated as ordinary income. To be eligible for the 50% discount you will have to hold on to the property 12 months before entering into the Rent to buy contract. As it is usually bought and sold quickly you will not be eligable. Don’t worry too much though here is a quick comparison.

Onselling the property straight away
30k at say 30% tax rate means this profit incurs $9k tax over the contract.

Holdinf for 12 months 30k at 50% = $15k. Tax will be $4.5k however your carring costs in the first twelves months with interest etc may be $1,000 a month for example meaning you are out of pocket $16.5k as opposed to $9k

Just make sure you look at all the scenarios and your current situation to come up with what will get you the best profit.

Goodluck!!
Chris