I take it these properties are in Victoria? Have you considered CGT too? Part IVA? It is an excellent strategy, but be careful

You can sell at any price, but because the parties are related you could only claim tax on the basis of market valuations. Increasing the sale price probably won't mean any increase in loans. this may mean no effect on claiming the interest. But in the future when you sell you may have to take into consideration the value at purchase rather than the purchase price.

I would suggest you seek tax advise separate from the fin planner to be safe. Fin planners can give limited tax advice but they are not as thoroughly trained.

Sounds like you are relying on luck. Probably the wrong property in the wrong area. Is it regional?

You would have actually lost money on this property considering the interest and other payments and inflation.

What sort of rent return?

Any connection to NSW? NSW has some pretty extensive family provision laws. Ex wives can make claims on estates of their dead ex husbands (or even lesbian partners). This can include notional estate orders covering assets that you do not even own.

Then you have the family law side of things and the law of equity to deal with.

Loan documents are the least of your problems

Hi.

I am not much of an economist so cannot comment on the above, but generally… I went to work in Japan in 1990 right at the top of the boom. I was making huge amounts of money doing average jobs. Now I am a NAATI qualified interpreter and have 2 children going to Japanese public schools. My family also owns a few houses in Osaka.

I would never invest in Japan. Not in real estate and not in shares. Not even in business. I just returned from Japan last week and the shops are still busy with people buying still, but prices haven’t gone up in 20 years. Japan is extremely cheap to live. $4 for a sit down meal in a restaurant in Osaka CBD for example. Housing is cheap, rent is cheap, cars are cheap. It is cheaper to shop in Japan than it is in Thailand. I buy all my clothes in Japan even though I stop in BKK on the way back. Off the top of my head I can’t think of anything that is more expensive than in Australia.

There is a restaurant near my house, it has about 10 customers per day if that. About $8 per meal – how can they make money? Its been like this for years. And there are many shops like this.

A few trips ago I went with a client (all expenses paid) who wanted to purchase a helicopter. We travelled around to many aviation companys and I was surprised with the number of Chinese working there. They speak Japanese and English and are infiltrating major businesses. In Tokyo in one of the kings cross type areas I was constantly approached by Chinese prostitutes on the street. I thought I still had it when I was approached by a young sexy girl asking me in Japanese to go for a drink – only to realise she had an accent and it turned out she was Chinese and inviting me to a special bar.. Then I travelled up the coast to Nagoya and stopped at some smallish towns – more Chinese prostitutes. Lots of massage places too – probably staffed with Chinese female masseuses.

I was also surprised on one town to find a very large population of young south americans living there. Some signs were also in another language – possibly portugese. They are all immigrants and go to school there.

Japan would be a great place to retire too. You can rent a small house in the countrside for next to nothing. In Osaka around $1000 per month would get you a nice house – even less in the countryside.

Just some recent observations

I would say $2,000 to $20,000 to set up. Def have a company as trustee and I agree with Shahin St G is one of the best lenders out there.

As a non resident you would be paying much higher tax than residents. It may work out better for you to take your money offshore where it could be earning higher returns without the tax. This in turn would increase your deductions for the residential property here

Darrly,

I agree.

I have a client now who is going to be bankrupted soon. He did his own asset protection planning and thought he was smart buying a commercial premises in a company rather than his own name, Guess who owns the shares!

Consider land tax as well. This is likely to be a large expense as trusts do not get any tax free threshold so 1.6% of the land value for all land owned by trust – each year too!.

Being a director has no bearing on tax. Trading company should not hold assets or be trustee. It could be a beneficiary though, but this may mean it starts to hold assets – cash distributed. It all depends on the risk factor. weigh up risk v costs.

Consider succession planning too. Who takes over if you die or become incapacitated.

Also possibly consider setting things up so that it is flexible and can be easily changed or adapted in the future – such as using a unit trust on top. There are many advantages.

Sounds like a reasonable fee. Nathan is very sought after these days.

It could be possible.

Reg 13.22C SIS regs