If that was the case she would still have benefited by receiving rent – which would presumably be above market.

You will need some complex and expensive legal advice.

The trust will be a controlled foreign trust.

Borrow against Australian property for the purchase?

Here is the link to that thread I mentioned

https://www.propertyinvesting.com/topic/5031860-trust-strategies-to-increase-borrowing-capacity/

Yes it could make a huge difference. I started a thread on here about 6 months ago about this exact thing.

Keep in mind any transfer would be a CGT event and a dutiable transaction.

Yes, but..

But you are conflating a ‘loan’ with a ‘mortgage’ when they are two separate things. A mortgage is a charge over a property to act as security for a loan. Since there are 2 owners there must be 2 mortgagors because banks will not let their loans be secured by part of a property.

So to get the loan into 1 name, and secured by the…[Read more]

First check that they are licensed to give tax advice or not. Only lawyers or tax agents can give tax advice. Financial planners cannot give tax advice unless they are either a lawyer with a practicing certificate of a registered tax agent – some are.

If they are not licensed then don’t consider them any further. If they are then investigate further.

No it can’t be said over every property. With some the plan is to invest long term and receive rents.

Legislation doesn’t have a minimum, but the time factor would be relevant to determine if it was the main residence.

There is no 6 month rule. One week could be sufficient in some cases.

Could the lesser performer become the greater performer in the years ahead?

Loans must be secured against property, unless they are personal loans?

Which would release more funds after repayment of the loan and CGT?

You could always start at 80% and increase later – but harder to cash out later.

You don’t want to incur LMI unnecessarily. What if it takes you a full 12 months to buy the 4 properties? There could be growth in the meantime, which might have meant less LMI if you had waited.

Also there is a question about the deductibility of LMI when you are…[Read more]

Some more things to consider:
. Which will result in the greater amount of cash released?
. Which will result in the least amount of cgt?
. Any land tax differences?
. both owned by same persons?
. What loans are they securing?
. Could you keep one of the loans open and substitute securities?
. Instead of selling could you borrow somehow?…[Read more]

Overseas rental income is taken into account here.

One example of how you could structure it is
Ian owns 90%
Dad owns 10%
Tenants in common
Both incomes used for servicing

Later Ian’s income increases.
Ian buys Dad’s 10% for market value. CGT and stamp duty will be minimal as just on the 10% portion.

A ‘joint venture’ with someone else that does have serviceability may be another option. This could be a temporary measure until you can service or a long term thing.

Banks don’t care what you pay yourself from a company which you own as they will look at the company financials as well. If you are being paid from a company which you do not own then this is employment income possibly.

Banks must follow the laws in lending and they won’t lend to you if they think you cannot afford to pay it back.

Self employed operating trusts and companies.

What sort of investments? Many banks will lend on dividend income but it won’t be easy without a job.

And I should point out the best solution and that is a term loan which allows payment directly from the loan account. Westpac Roket loans for example.

I answered this above

I didn’t say either was a bad idea. There are only 2 products you could choose from – the LOC or the term loan.

One strategy may be to use a LOC and then immediately convert it to a term loan after settlement.