Just terminate the contract, get a refund and have the trustee enter the contract and pay its own deposit – if you want to use a trust that is. you can lend the trust the money which it can use to pay the deposit.

Yes, I am happy to take new clients on – I charge $660 for a 2 hour consultation.

I think you might need additional or further advice.

Although you could do what you are proposing consider the arguments a trustee in bankruptcy could use against you. Research resulting trusts.

I am a lawyer and broker specialising in trusts. lending to trustees is pretty much the same as it has always been. Not difficult and not much tightening up.

But I think you need to seek legal advice as there are better ways to structure your set up where you can get both asset protection and the main residence CGT exemption.

Also watch out for…[Read more]

In the good old days people could just keep extending the IO terms on the loans. This is probably no longer practical to do and may not be even possible for most.

Where it was possible it used to help in a number of ways with the 2 main ones being:
a) building up a large cash buffer which could be used for a quicker and more tax effective…[Read more]

Yes even positive cash flow property can hurt serviceability because the notional repayment the lender takes exceeds the cash flow.

Yes. but which individual will depend on how the trust is structured.

Deepends.

No.
But you will need to prove that the property was your principal place of residence to avoid having to give back any grants and fines.

Wow, what a banker!

Of course you can have an offset account – even with no savings. Whether it is worthwhile or not will depend on the circumstances. Perhaps they meant that you could not service to qualify for the loan. Hit Corey and his team up for some advice and forget dealing with the banks direct.

Yes it could be done, no easy, but possible

You would pay stamp duty and income tax (not CGT).

Changing names is a transfer so duty and CGT will apply – (limited exemptions for main residence etc)

1. solicitor
2. management fees etc
3. the rent
4. no
5. depends on your contract with them.
6. you can’t without a breach of contract or the other party agreeing.

Recycle debt by paying down the non-deductible main residence debt and then reborrow against the main residence to invest – making the interest dedctible

I still don’t see you factoring in the ability to borrow against assets outside of super.
Superfunds cannot borrow, with one exception – to acquire an asset. Any equity built up cannot be borrowed against.

Outside of super it can be.

So a equity increase of $200,000 side super may equate to $170,000 after tax. That $170k could only be used to…[Read more]

Yes

There is a lot to consider besides tax.

Some are:

Access to funds – early retirement

Accessing equity and further investment and compounding – with no CGT tax until the sale.

With super the tax rate is 15% with limited opportunities to reduce this, outside of super there is a potential to reduce tax to 0%

what about the leverage outside of super?

The tax consequences are vast and complex. An experienced tax lawyer or accountant would be needed to go over it. Expect to pay $900 per hour or more for this sort of thing. Not somethign that I would advise on because of the complexity.

Her property would be secured by a mortgage and cross collateralised with your property for your loan. If she defaults on her loan it would affect you because the lender would potentially sell her house. They would be worried about the security for your loan so they may ask you to bring the LVR in line with their lending policies – such as 80%…[Read more]

Are they experts?

If they are not lawyers then they have no business advising this. If they are lawyers then they should be able to present their arguments on why it does provide asset protection.