Don't mix personal and investment borrowings in the same loan. You will be able to apportion it easily enough to determine deductibility initially, but as you put more money in it will become a nightmare. Also any further deposits will be coming off the investment portion as well and this will result in more tax.

Solicitor – legal questions.

If you would be buying out the sister you would be using the house as security. Also consider deductibiliy of interest questions.

Depending on the terms of the will the sister may renounce her interest possibly. Possibly other ways too!

If not it would be a sale from the sister to your wife and normal stamp duty etc would apply probably.

Technically the lender is correct to refuse to take into account the trust income. Because the trust is disrectionary in nature there is no guarantee that the trustee will make a distribution to the same person each year, and if they do it may not be the same percentage of the trust income. This is the case if the individual is the trustee and/appointor.

But in practice I have never encountered a problem and this has in fact never been raised with me once by a lender in my 13 years as a broker.

Most banks will take the trust income into account. You should use a broker.

You should not use a company for many reasons. You need to seek legal advice on the structure as there are a number of issues. Set it up wrong and you could lose money and pay for tax and suffer asset protection issues.

Also Someone on $80,000 pa would pay approx 18747.00 in tax. That is just 23.4% tax.
Great calc at http://www.taxcalc.com.au/

Very risky is the first thing that comes to mind…

Best to see a property lawyer. Not all property lawyers would do litigation however, so even if someone has not been to court this may not mean anything. In fact a well drafted contract may mean there is no ambiguity and less disputes arise.

Also the option contract is only one part of it, the aother part is you knowing the contract and meeting all the requirements such as properly notifying the other party that you are exercising the option.

There was a recent case involing a restuarant in Darling Habour Sydney which involved an option to renew a lease. Millions were spent on a renovation and then the leaseholder failed to property notify the landlord they wished to renew the lease. the result was they were kicked out…

Since you have inherited the land it is likely your cost base will be the value at the date of death. Best to get some proper tax advice before selling as you may be unlikely to get the loss

If you were paying someone else’s loan you would have a beneficial interest in the property.
You couldn’t change the loan as it is not legally your. The borrower would be the contracting party with the bank, you would be just paying the loan.