try Mike at http://www.propertytaxsolutions.com.au in melb.

If you have made money you could sell and repeat the process and potentially make more (by getting more efficient). Next time consider using a company to hold the property perhaps.

Commercial loans can be done in individual names

If you are asking about ownership structure then seek specific legal advice as many issues consider.  Transfer of title or declaration of trust will both attact duty and CGT to it pays to get advice.

As a general rule you should never pay a deposit on an investment property when you have non-deductible debt

Borrow against your main residence for the deposits

You should also try to shift the investment debt to owner occupied rates as well as investment debt generally has a higher rate.

Think of the sale of the main residence as a strategy…[Read more]

It might be possible to go to separate lenders – might be hard if one contract of sale though

There is a simple way to increase deductions and that would be to borrow 100% for the construction. wait till titles are separated, split the loan and then pay down the non-deductible portion.

There is plenty of information out there. Perhaps start off looking at the loans available to SMSFs. The number of lenders is dwindling and the ones that do lend are making the most out of it with high rates and fees.

Once the trustee has purchased property it cannot be leveraged against – the equity cannot be borrowed against so think of it…[Read more]

Ah, but there could be a difference if ‘foreign persons’ are potential beneficiaries of the trust.

Best to talk to a lawyer – but no differences in duty between trustees and persons/companies.

But should you be putting the unit into trust? Possibly not.

Probably read as much as you can first and then speak to a lawyer

This is something you need legal and tax advice on – and credit advice.

Once you decide you will need to consider structuring the company and trust and how to structure the funding of it. There are traps at every step along the way.

Any specific questions please list them here and i will answer.

Unless… If it was a farm, there is a possibility of living on in the house and surrounding 5 acres.

This would breach superannuation legislation.

Who advise you this and what is the purpose?

A rebate to get a higher loan amount could be deceptive to the lender.

This must be a victorian purchase?? Off the top of my head you would get the owner occupied rate if you intend to live in the property and actually live in it.

Fences are not deductible. This would be capital works, same with the paint. You could merely depreciate them at 2.5% pa over 40 years.

You will max out at some point. Generally where a borrower is a company and you give a guarantee if you go and apply to borrow again, if your own name or under another company, the loan you have guaranteed will count the same as if you were the borrower yourself.

There are limited lenders where guarantees may not be counted as debts, if the…[Read more]

It should be ok to stand I think. Many people seem to have these thoughts!

I am a lawyer so couldn’t advocate lying to the ATO.

The ATO searches the rental bond register too – which would be evidence the house is rented out so the full main residence exemption would be llost – and you cannot use the 6 year rule when still living there and renting out part of the property

Are you implying that the op should go to a real estate agent for tax advice?

No.

The requirement is not ‘live’ but reside in it as your main residence.