But it could still be worth considering a transfer to a trust for added asset protection and tax reasons. Do the numbers.

Sarema,

It doesn't matter that your loan is closed even if it was still open with redraw available the interest on the withdrawn money wouldn't be deductible if it is used for private purposes.

If your property is in VIC one spouse can buy out the other spouse at full market value without stamp duty. It will probably be CGT free if it was a main residence, depending on a few things.

someone sent me a PM asking me to comment with regards to borrowing and using a trust.

This wouldn't change things because if someone borrows money and 'invests' it in a discretionary trust the interest on the loan would not be deductible because with a discretionary trust there is no fixed entitlements so the person investing the money would possibly not get a return.

The property could be sold to a trustee and the interest could be deductible to the trust – which may not help a great deal if the trust has no other income but still may be worth considering. Stamp duty would apply though.

Brokers cannot give legal advice!

No, the trust shouldn’t invest. It would just be a lender to you.

Not necessary to set up a trust, but it may be worthwhile depending on your situation.

I would suggest you look at gifting the whole of your cash to a trust and then for each property borrowing the 20% deposit from the trust and the 80% from a bank.

There is generally no harm in paying down debt. You will get a guaranteed 6% or so return.

Another consideration is borrowing ability – if you pay it down now will you qualify for new loans in the future?

If all properties are owned by the same person(s) then it generally has not effect, taxwise, on which you pay down. But from a lending POV you may want to pay down the highest LVR first as this may make it easier to move banks later if required.

Mate, that is the oldest tax document I have ever seen. Look at the date on it – 1964.

Since then decimal currency has come into play, CGT introduced and a whole new tax act enacted.

You must declare all loans. So it if is in your name or your guarantee the loan then yes it will affect borrowing capacity.

But you may also be able to claim the income from the property, depending on a few things.

More complex than usual, but doable still.

It is generally difficult to get an investment property loan in Japan. How will you go about that?

Sometimes, though rarely, residential could qualify – the definition of what is allowable is 'business real property', not commercial. Not sure if this could meet that definition though.