I should say the unit trust is just one option out of many potential. There may be better alternatives.

Get some legal advice on selling to a fixed unit trust. I just did this for a client where they borrow 105% of the property value to acquire the units in the trust which bought their former main residence. Loan is 100% deductible to the individuals. The cash released was used to pay down the new poor debt. No CGT land tax threshold in…[Read more]

what are the differences in rates?

NAB are extremely frustrating to deal with.

Yes but the loan will always need security to be kept open. This could be with cash.

The agent is not making any money out of chasing a a tenant like this – approach directly.

Yes.

They can keep the loan open under different security. This could be a term deposit temporarily under a new property is found and then mortgaging the property at settlement.

Brokers don’t value properties, but qualified valuers do. Most people over estimate what they think the property is worth so have a realistic expectation. If you think it is low do you have addresses of comparable properties in the area that have been sold and have settled/? If so you could challenge the valuer.

You might also consider asking…[Read more]

I don’t see how this is a screw up.

Pete

Not my area but you are looking at $5k to 10k depending on how complex.

Diy you will still need to pay lots of legal advice and amendments as it will be full of holes. Also each party needs a solicitor to explain it. The other side solicitor will also request amendments too.

This would be legal advice so a lawyer would be the go. An accountant can advise on the tax aspects only.

I am too busy to take on new clients ATM.

I think you should seeks professional help with such a set up. You need to speak to a lawyer who understands tax and a broker and you might want to consider several structures

If a trustee owns the land Mr C cannot negative gear it.

If A and B are borrowing money to lend the trust they will have interest which isn’t deductible unless the trust…[Read more]

Apportionment needed

Borrow against the existing property a d separately borrow against the new prooerty

You will have to work out the cost base and then deduct this from the proceeds. If negative it will be a capital loss

Your other property is irrelevant for this transaction unless you are claiming that as the main residence.

Yes you will need to pay CGT if there has been a gain.

It seems you have owned it 3 years but rented it for one year, work out the cost base of the property – include expenses while living there such as interest, rates etc (third element o…[Read more]

Your options are limited as this is probably due to serviceability. Under the agreement you entered with the bank they would be entitled to retain the proceeds of any sale if they think you can no longer afford to repay the remaining loan. They have a mortgage and will only release the property if you accept this.

But see a broker quickly…[Read more]

You might want to get a valuation each (ie. 2) as the one ordering it may benefit more than the other.

Also seek tax advice from a lawyer too as it may work out better not to transfer due to a break down of a relationship, because there are CGT and income tax disadvantages.

Split the IP loan into 2, with the original loan interest being deductible and the new portion not.

Loans generally don’t effect CGT. The interest on the loan for the PPOR won’t form part of the cost base of the IP even if the IP is used as security for the loan.

I think generally avoid it if you can, especially for the main residence loan.

But it depends on your circumstances. Seek specific advice from a broker.

Just think of the trust as a separate person – John
John is buying a property so john would pay a deposit. There is no need for john to give you the money for you to pay the deposit, he should pay his own deposit.

if you pay the deposit for John you are weakening asset protection. if the deposit is to come from you you would gift it or loan it to…[Read more]