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  • Profile photo of TerrywTerryw
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    @terryw
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    Have they just changed their name or are they forming new and separate companies?

    If you go to asic.gov.au and do a name search you can find them. If they have a new name then that will be listed too. You can also go to http://www.abr.gov.au and do a name search there. Look at history.

    If it is a new company then that is a separate legal person and no relation to other companies.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of TerrywTerryw
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    williamwpy wrote:
    Thank you Jamie very much for the reply and I really appreciate it.

    I heard that when purchasing the house, you need to inform the ATO whether this property is for home purpose or is for renting purpose. Eventhough I do not physically live in the house and I rent it out. Can I still tell ATO this is for home purpose?

     

    William

    This would be tax fraud.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of TerrywTerryw
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    Best to seek specialised legal advice on this.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    The fast food approach to finance!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Finance may be more restrictive for this sort of thing too. eg. Suncorp would lmit this to 80% LVR

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Lender Mortgage Insurance

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Well, you have to be careful. There are good and bad ones. Many will just recommend managed funds over property. Many are also under-educated having just a diploma which can be completed in 4 days.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of TerrywTerryw
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    skip the financial 'advisory' and go Jamie

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    No need to even meet them in person these days.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    get the points.

    No issues if you pay off your card in full each month as there will be no interest to claim

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Firstly, documents would vary from state to state.

    And secondly each option would need a contract of sale attached.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    And what are you looking for and what are you offering?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    10000,

    What the SIS act requires is that a SMSF buying property needs to set up a bare trust to buy it in. The trustee of the bare trust can mortgage that property and only that property. The trustee of the bare trust is acting for the SMSF trustee and is just the legal owner of the property temporarily while there is a mortgage on it.

    So if you could work out a situation in a foreign country where a bare trust can be established and find a lender willing to lend to this trustee on the basis that they are the legal owner for someone else and then that may meet the guidelines in the SIS Act. Many hurdles to overcome though. Deposit has to be paid for by the SMSF etc.

    No Australian lender is going to lend for overseas properties with the loan secured on those properties. This is even more the case if there will be a SMSF involved.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Maybe post some figures.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Once the land is sub-divided you can just sell it. It would then have a separate title.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    Rick sta wrote:
    Is the establishment of a SMSF viable with a super balance of 50 or 60K?

    Not really. But it would depend on the situation. It maybe possible for a member to lender money to the SMSF to do a deal. This money could be lend at nil interest. The deal done and the loan repaid etc.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    10000_Lakes wrote:
    Hi Good Morning,

    I came across this thread while googling "Limited Recourse Borrowing for Overseas Property via SMSF"

    Just read through it all, and I see information above regarding Citigroup AU offering loans to purchase property in the U.S — does this include the limited recourse structure for buying US property via SMSF?  — wondering if there has been any other developments since the last post in June….

    Similar to the original poster,  we've only been in Australia for a few years so our combined super balance is only ~50K.   But wanting to leverage that as a down-payment and structure the limited recourse aspect via a SMSF.

    Does Citigroup offer the limited recourse borrowing for overseas investment?   Surely there must be some Global banking product out there that recognizes this demand and opportunity.  HSBC Premiere banking, etc?    Cheers

      

    Nope.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Consider

    – death

    – divorce

    – bankruptucy

    – withdrawing from the investment

    – stamp duty

    – borrowing ability

    – guarantees

    – effect on future borrowings for individuals

    – land tax

    – cgt

    Probably the most flexible structure is a unit trust with a corporate trustee. But the structure within the structure would depend on your situation.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    TD 2008/27

    http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200827/NAT/ATO/00001

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of TerrywTerryw
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    Sounds like you have a good argument for it. The ATO has also issued another ruling that interest on interest is deductible if the underlying interest is deductible.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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