Thanks Scott, I’ll check those sites out.

Hi Terry,

1, Three Reasons (in short) – First and foremost ‘financial freedom’ , Secondly setting up my retirement fund. (I’m 43) , Thirdly it resinates in me higher than any employment or business I’ve had or got.

2. The property is in Queensland.

3. Current Value (approx.) $390K Current Loan $329K

4. Yes, for growth, No for positive cashflow. (currently I am renovating it)

Hi Jamie,

Ok, let me restate my case with hopefully more clarity.

Based on Steve’s book I was considering putting our lifestyle property into a ‘family’ trust setup with a Co P/L trustee, with me as guarantor.

So I spoke with our lender (Suncorp) which advised that moving the property into that type of structure would be considered as a sale and purchase of the property which would trigger all relevant fees and stamp duty base on the value of the property.
Our estimate value $390K (conservatively)
Current Loan $330K
LVR – 84.6%
Suncorp said, I’ll need cash for the transfer duty ($12K), and will be hit mortgage insurance as LVR over 80%, mortgage stamp duty, plus standard loan fees.
I think under the trust setup Suncorp maybe viewing the property as an investment rather than a PPR.

This property may become an investment property in the future, for now it is our PPR.

My accountant suggested (or my understanding of his suggestion) that I could simply transfer my half of the ownership to my wife through the Titles Office (via a conveyance agent), set up a trust ready for when I locate/purchase the investment property then upon acceptance of the contract source refinancing of the existing loan with me as guarantor on both the PPR and new investment property (probably with a new lender).

The quotes from the conveyancing agents are not high, however they have also said that the property will need to be valued and 50% Stamp duty of the transfer. I have tried working out the stamp duty using online calculators as well as using the transfer duty table on the Office of State Revenue and they all vary between $12k & $2.5K.

Maybe I’m not saying the right things to the bank and the conveyance agents?
I’m trying to work out the actual costs.
Up to now I been basing on the most conservative (highest) figures. Which means can’t start.

Regards
John