Plenty of tax and legal issues here. You should seek specific legal advice.

firstly does the trustee have the power to allow a beneficiary or a relative of a beneficiary to live there? If so can this power extend to under market value rent? (if you are a beneficiary she probably is too).

Does the trustee have a loan on the property? Would they…[Read more]

Actually there is a 3rd option.

3. Got to another lender that will take a mortgage behind an existing mortgage – St G are good at this, but you are already mortgaged to them, another option is ANZ possibly.

In that case you have 2 options:
1. stay put, or
2. take your $400k loan and refinance with a lender that will lend.

When cross collateralised you won’t have the second option.

You can still access equity by borrowing against a property that already is secured by a mortgage for a fixed loan.

e.g.

$400,000 loan on a $500,000. Fixed for 5 years.
Property increases to $600,000 you can keep the $400,000 fixed and take out a new split of $80,000.
The $400k loan would be have IO fixed and the $80k loan could have been…[Read more]

Bank staff are often involved with deception, or fraud. Just make sure you try to cover yourself by getting evidence in case this non disclosure blows up.

Any possibility of uncrossing the loans?

Perhaps part may be able to be broken out and refinanced – incurring a break cost if need be. These costs may be deductible and may result in lower ongoing interest as well.

Can u not just change products?

My question is, if I were to change the loan to a standalone loan account with a redraw facility, could I still do what I outlined above?

=NO

Pete

Not many people can keep on buying properties these days. Even with high incomes. I had a client the other day on $250k with 5 properties with 50% LVR. I though serviceability should be fine for another, but after checking it was very tight. We were just able to squeeze in one more.

You will probably tap out very soon.

Do you mean you have…[Read more]

If you sell in Sydney and buy up there you may not be able to buy again in Sydney.

You could use the 6 year absence rule to keep claiming the sydney property as the main residence while you are not living there – and claim everything as per normal yet not be subject to CGT.

You have basically got 3 options
1. decrease expenses
2. increase income
3. Do both

Sounds obvious!
Check that your rate on the loan is as low as possible.
Are yo claiming all deductions?
Depreciation schedule in place? Travel? Borrowing costs
Debt recycling strategy in place?
Borrowing to pay costs?
Is capitalising interest or borrowing to pay…[Read more]

No, this would be a breach of their agreement with the lender.

Also the policies are sometimes in one PDF, but more commonly now days on various pages on the internet (internal site) so are unable to be saved or print out en mass.

There are also some tax and legal reasons not to buy property jointly.

What is there to do with GST? Depeciation is worked out via a quantity surveryor and given to you in a report.

Just use excel to keep track.

You should seek legal advice as trusts are complex legal relationships. you can find free deeds online, but the deed is only half the story. the accountant will only buy a template off a lawyer anyway – but they cannot give advice about how to structure the trustee, who should be the appointor, what happens when someone dies, goes insane or…[Read more]

It may not be a good idea to pay the loans down but instead go IO and store the cash in the offsets. This can allow for quicker retirement.

And to get 3 fully paid off (or fully offset by cash) you might buy 6 and sell 3 as this may get you there quicker than working and paying down the loans. Capital gains are taxed at half the rate of wages and…[Read more]

You need to seek legal advice on this. Speak to a SMSF lawyer

Costs of the land, stamp duty, interest rates etc could all come off the CGs – which may make it a capital loss which may help you save tax at some future date on a capital gain.

Strictly speaking one tenant in common could mortgage their share of the property and the SMSF share be unencumbered and this could meet SIS Act rules. But you wouldn’t find a lender out there willing to lend on this basis.

Another way to do it would be for your friend to borrow against other property.

The deed is only one aspect. It is the advice that is important.