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Thanks Terry.

Terry good point!

What I meant to say was if the trust has made a profit of $13,000,(no loan ,no interest to pay)

Will tax only be applicable at 30% if I the trustee want to access that money?

Thanks for all the help everyone.

One last question

If the trust has earned $13,000 in rent but has paid $20,000 in interest,the trust wont have to pay any tax on the $13,000.

If I the trustee want to get my hands on the $13,000, will I have to pay 30% tax on it?

Padma what you are suggesting is exactly what I wanted to do. But I cannot convince her. Her argument is we both work in the city and it takes 50 minutes to commute from my place and 20 minutes from hers. It’s not a bad argument but I would of put up with the extra travel, then again I am used to it.

Derek I am strongly considering your opti…[Read more]

Terry,

So I sell the home I now own to my own discretionary trust which I am the trustee.

The trust obtains a loan for say $300,000 and pays this money to me, which I use to pay off my new PPOR.

The trust now has to pay tax on the $13,000 in rent its earning from the property.

However the trust is paying $20,000 in interest on the $300,000…[Read more]

Have many people done this?

jhopper are you sure this is legal?

Just something additional if it applies to you. If serviceability is an issue for the loan, which it was in our case, you can have the property in your partners name, the debt in joint names and still be eligible for the FHOG.

I had had proprty before, my partner hadn’t and we…[Read more]

Surrey,

What you said makes sense. Maybe I should sell the whole IP to her.

Terry,

Could you explain how a trust works?

Thanks for the help everyone.

I think I am going to go with a solid timber floor rather than a floating one.

Has anyone used Rex Flooring in Sydney?

Are they any good?

Anyone know where I can get a good price for a floating timber floor? Have about 80 m2

Sorry to be so glum but one of my investors a young guy from Parramatta was gobsmacked by a bank X guy who said 18 months ago dont buy property its too risky, told this 21 yo to take out a loan to buy shares and invest in his(surprise surprise) managed fund.

DD I think I went to this same guy in Parramatta
because he told me to do the same…[Read more]

Thanks for the help guys.

One last question

Does anyone know how much depreciation you can claim on a 10-year-old property?

And can anyone recommend a good Financial Adviser or Accountant?

Thanks for the reply Jeff.

Yes I am borrowing $388k to purchase the other property I wish to live in.

Although if I sell the property I currently own I will only need to borrow 88k.

This is the problem.

As I said my preference is to keep the property and use the rent to help me pay the new property off.

Although I will be paying a lot of…[Read more]