Ryan,People who are non related and invest together are not going to want to be involved together as beneficiaries of a discretionary trust, because a discretioanry trust gives the trustee discretion in which beneficiaries receive income or capital.A more common structure where non relatives are investing would be a unit trust and the investors…[Read more]

There are a number of issues.  In NSW in similar zoning a subdivision may require construction of roads, provision of electricity, contribution to council infrastructure.Talk to your Council town planner

When you say "only days after" what do you mean?  Was the pest inspection done pre exchange, or was it done during any cooling off period, or was it done during any period the contract gave you to get a satisfactory pest inspection?If it was done outside any cooling off or contractual period, your contract may have obliged you to settle anyway so…[Read more]

I can't comment on Steve's experiences some years ago, but now the banks will specifically ask about personal guarantees and will ask if you are a director of a company. 

CGT calculations are based on market value of the property.  If you can convince the ATO that if your relation hadn't been willing to buy it for $5, you would have willing sold it to a nonrelation for $5, no problems.

Does your partner own the house you are living in?  If so, you ahve three options:a. you both agree that your house is the PPOR for the 6 years from when you moved out and your partner loses PPOR status on your partner's houseb. you both agree that your partner;s house is the PPOR and you lose PPOR status on your house from when you and your…[Read more]

Unless you are classified as being in the enterprise of developing land, GST will not apply. 

My understanding is if the margin scheme applies, then 1/11th of your purchase price is deemed to be GST,so sale $400 = $36,363 GSTGST credits – margin scheme $27,272GST paid on purchase costs (NB stamp duty won't have GST)GST paid on reno costs $30K = $2727GST paid on selling costsso net GST will be about $6K

What kind of infrastructure is in the town already eg schooling, health?Many miners are employed by contractors to the mines who might be on a 2 or 3 year contract.  When the contract expires all those miners might be offered positions interstate or nowhere even if the contractor has a contract nearby.How far is the nearest regional centre?  So…[Read more]

Just be careful.  In NSw a few years ago if the name on the contract was XYZ as trustee for ABC trust, the Office of State Revenue wanted double stamp duty. 

http://www.ato.gov.au/individuals/content.asp?doc=/content/57402.htmhttp://www.ato.gov.au/businesses/content.asp?doc=/content/19998.htm&page=1#P942_114024http://www.ato.gov.au/businesses/content.asp?doc=/content/19998.htm&page=1#P1016_124833Quite frankly I find it difficult to tell where the line is drawn between Example 1 and Example 4

Are your parents intending to go on a pension?  If so giving the property to you could affect their entitlements.  You need to get advice as to whether at the acquisition of the property it is possible to argue that the property was always your under an arrangement with your parents.  You will probably need a Private Binding ruling.

Get a valuation done.  Note CGT may be applicable unless this was your wife's PPOR and you both elect that it be your PPOR for CGT purposes, this will mean your existing house will lose some of its exemption from CGT as a PPOR.  If this had bee your wife's PPOR the value for CGT will be reset at the value as at the date it first started earning i…

If the property is not available for rent in the peak season the ATO will not necessarily regard availability as an appropriate apportionment method but might consider actual period rent was received for as a more appropriate apportionment method.  The issue being whether the characterisation of the house is as a means of earning income or w…[Read more]

Have you paid rent to your parents?Was there any agreement or arrangement made when the prioperty was purchased between you and your parents as to what would happen in the future?

From reading Steve's book in its first edition I recall 2 methods:a. as a property increased in value, selling it and reinvesting in multiple properties in an overlooked area – did he call this Divide and Multiply?b. wrapping: so that the purchaser under the wrap paid a deposit which could then be used by the vendor in another transaction

Once your mother has been in the nursing home for 2 years doesn't the home form part of her assets under the assets test?

No, you can't get a loan to 'pay us back'.  The borrowing would be for a private purpose.

If you are receiving a Living Away from Home allowance your employer will be paying Fringe Benefits Tax and it shoudl not be txaable (or any deductions) as far as you are concerned.  If you are being paid a travelling allowance that is a diifferent kettle of fish and the allowance would from part of your income and you would be able to claim…[Read more]

You should move in before doing the renos because to start with this as a PPOR you need to move in as soon as possible after settlement.  You can only have one PPOR at a time subject to the exception allowing up to 6 month sfor 2 PPORs where the one you moved out of is sold.  After you move out of your PPOR you can be exempt from CGt on that p…[Read more]