It’s like with many other professions.

How can you be certain your solicitor isn’t dragging the procedures, all in order to get more billable hours?

How can you be certain your mechanic isn’t neglecting certain aspects or inflating other issues so he could profit more from you?

How can you know your tradie isn’t working slower than he can or recommending work or repairs that aren’t needed?

Etc etc.

The answer to all of the above is trust.

Either you deal with people you trust or you don’t.

Gut feeling plays a big role here.

One can’t be a solicitor, a broker, a mechanic, a tradie (etc etc) all at the same time but if you really think it’s best, you are most welcome to become a broker. There is time and money needed to setup and also on annual basis + 20-25 hours CPD training p/a + some lenders are not fond of brokers submitting their own loans but hey, it can be done 😊

My suggestion? Interview more brokers and see which ones you feel will serve you best.

Good luck! 👍😎

Not a fan of uphill battles with councils, tbh.

Can the land be subdivided?

Agree with the above.

I get why the broker wants to avoid time wasters by locking them in with $1000 fee if not proceeding. It’s steep and we don’t do it but I get it.

That said, there’s probably nothing there that says you have to accept his suggestion to x-coll. So you can simply go back to him and let him know that you want to proceed but as standalones. He may object (don’t know why, but saw it happen) but doubt he’ll outright refuse. Bottom line is that he can suggest whatever but you’re the client and you’re giving him instructions. Not the other way around 👍😎

Please do come back and tell us how it all worked out.

Best regards,
Ethan

Instead of asking us to provide you with a full list, how about you let us know what you included and we’ll add what we think is missing? 😉

Terryw wrote:

one way is to sell to a related entity just before sub division

Alright, but still… once the subdivision takes place, at least one of the lots is subject to CGT, right?

Hi Terry,

Are you happy to share an example how tax could be eliminated in such a scenario?

I understand that one of the blocks will be considered PPOR (so no tax there) but the other surely will be considered IP so tax will be payable?

Thanks,
Ethan

Cheers, Terry. That’s good info 👍😎

Terryw wrote:

blackhotel wrote:

Terryw wrote:

The property as been a ip for less than 6 years exempting it from CGT

Just out of interest, how does an IP get exempt from CGT if it’s been an IP for less than 6 years? An IP property is never exempt from CGT unless it was your actual home.

Yes that is right. It must have been the main residence first. The op said he lived in it for 9 years prior to renting it out.

Doesn’t the rule of 6 years apply only if at the same time the owners don’t nominate another property as their PPOR? 🤔

Agree with Terry that there is no “correct” answer.

I can get the logic of family A but why does family B believe both parties should pay for all fences?

Did you guys happen to establish some dispute resolution mechanism? If not, is there a third party both families trust and can agree that her/his decision (after hearing both parties) will be accepted as final, ideally with no hard feelings?

Hi Rob,

Generally speaking it does make a lot of sense to offset the loan that carries the highest interest (that is assuming one has no other debt, mainly non deductible debt).

Why is that loan so expensive, by the way?

Should you sell or not is a question that I suspect nobody here can answer for you. Who knows what will the value there be in 2/5/10/20 years? Selling also depends on your overall financial position, alternative yields and future goals.

One last note, I usually calculate “positive/negative gearing” on 105% of the purchase price, not on the actual loan repayments as it’s a more holistic way of looking at it I reckon.

Hope this helps? 👍😎

Best regards,
Ethan