A business is not something that can buy a property. You seem to be referring to a company – which is possibly going to act as trustee.

This is something you need legal advice on, on the stamp duty act in the state in which the property is located. If NSW double duty could be avoided in many instances, but care is needed. A recent NSW case…[Read more]

I didn’t say you would not be subject to CGT on your place. You need to make a decision on whether to claim the main residence exemption on this property or the other.

No valuation needed for new property as any CGT will be worked out on apportionment.

Check out hte victorian land tax act.

1. No
2. Possibly. But spouses property will be subject to cgt.

Depends on the state the properties are in

I am a lawyer and have seen a few people lose everything they put in to projects of developers – biggest loss that I saw was $1mil.

But clients only come to see you when they lose, there are probably many more that succeed. Just be careful and get legal advice before doing anything.

It is generally, but not always, the date of the contract to purchase the land. It will depend on the circumstances.

If you invest $300k with a developer you will be very lucky to get it back!

The use of the funds determines deductibility, not the original purpose, or what the bank classifies the loan as.

That is generally how to do it.
You would want to try to structure it so that you get as much of the debt on owner occupied rates to save interest. Depending on your current set up it might be better to secure 80% on the home and 25% on the IP!

I think it generally best to find a town planner in the suburb of the land, or surrounding areas as those planners may be more familiar with the relevant council than someone far away.

Where is the land?

I am using a town planner now who are located about 5km away from me – yet I have never met them and don’t plan to.

Yes sounds real and possible.

No change in laws recently.
Transfer is a disposal which is a CGT trigger. If the main residence was a CGT exempt asset there would be no CGT. But this property was an investment property before becoming a main residence.

No limit. They will have policies in place, but they will also claim discharge forms have not been received, or they are incorrectly filled in.

I would suggest you try to find out what the delay is and if it is the outgoing Mortgagee then get onto their complaints department.

Hi Arvid

1. why?
2. this will be the cost base, but it could still be CGT exempt.
3. Depreciation of fixtures and fittings won’t be available because the house is not new. Only building works could be claimed.

around 2 weeks after returning signed docs – but Generally the outgoing mortgagee will try to delay things.

Transfer of title will result in a CGT event being triggered.
Even if there is no consideration it will be assumed you sold to wife at market value.
Because it was an investment it is probably that tax will be payable.

But seek specific advice

Yes option 2 would be preferred as it will increase tax deductions – assuming ownership is the same.

The interest rate will depend on how you do it. You could get owner occupied rates if you are careful.
But make sure you split the loan before you deposit the money.

And don’t forget option 3
Keep the cash where it is and just borrow against the main residence for a further loan.