It can be possible to get the valuation done before hand. But the lender will only lend based on valuation or purchaser price whichever is lower.

Havea read of the contract. You might be able to terminate and keep their deposit, and then resell at a higher amount. Did you get the full 10%?

Yes, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html

but only if sell one within 6 months of buying the other.

Hi Kenny,

It will come down to your negotiation skills and then the solicitor rules and regulations. Have a look at the solicitor rules VIC and Legal professional act vic.

You can challenge it, but you received it near the start and let the lawyers proceed with their work. Did you sign a costs agreement? Even if you didn’t you implied you agreed to it by continuing to instruct. But this doesn’t mean you cannot ask them to reduce fees or you could challange it

You really need legal advice when setting up complex structures. I spoke to one guy who set his trust up online. Not only was he unable to claim any interest it would have cost more than $5k to fix plus possibly stamp duty again.

No sense in setting up a trust if there is little to no asset protection planning in there. You can also do some additional strategies because of your large sum of money. This needs extra protecting.

Finance structuring for the trust needs addressing too. Personal guarantees, who is director, shareholder, trustee, appointor, named beneficiaries etc. Get it wrong and you can lose control of your trust and also be required to provide unnecessary guarantees.

Think of it as 2 distinct interests like 2 separate properties. You will be living in your sisters property and paying market rent. You will be living in your own property at the same time so you would have no tax issues. Your sister would be able to claim her expenses if you are paying market rent and she is not living there.

Then i agree with Jamie. Paying down the old house any more will be tying you your cash which will mean less available for the new house which means higher non deductible interest and less tax saved.

If the reno was substantial then it could be deemed 'new' and GST would apply to the sale. GST on the full sale price perhaps. If subdivide then build the new house will also be new (der!) and would have GST if sold. But you may be able to claim some GST paid on materials back if the trust is registered.

With trusts the income flows through and the beneficiaries usually pay the tax. But CGT may not apply if you are developing.

You need specialist tax advice, preferably from a mate at a BBQ.

Max,

I took it that you meant you met a condition of release for a lump sum payment from your super which you then used to construct.

How did you do it?