I was just going to suggest a trust structure too – should at least consider it.

In some states the transfer of units in a unit trust are not subject to duty. In NSW the rate of duty is currently 0.6% but it will be abolished from 01 July 2013.

That means that 2 people buying property together could purchase in a unit trust structure and when one wants out the other can buy the units and no stamp duty would be payable from 1 July next year in NSW. The legal owner of the property would be the trustee and need not change – ie no change in land title. Also if the trust is a fixed unit trust then access to the land tax free threshold could be maintained.

Thanks for the kind words..

Banks don't accept credit cards for loan repayments.

LC

You are still confusing different issues I think.

1. CGT.
A main residence can be left vacant indefinitely and be free of CGT.

2. Income Tax
A residence can be left vacant for any amount of time, but you could not claim any costs unless it is available for rent and you are actively looking for a tenant.

And you might find that a valuer may think what you paid is market value. Start collection details of comparable sales (sales not just listings)

Does the bank specify a clause in the NCC which prohibits this?

What you have done is use a property you don't own as security. You are a director of a company which is a trustee. So you have various legal obligations and duties both in relation to the company and to the trust. The trustee has allowed you to use the trust property – but does the trust deed allow you to do this? If not, then you have breached your fiduciary duties as director of the trustee company.

What was the money used for? Trust related? Did the trust pay for the property when purchased from you?

Yes,, may be limited to loan based on land valuation only.

Sufficient for what?

See the link above for s118-145 . It can be left untenanted forever and still be CGT exempt (under certain circumstances).

separately, If you are talking about income tax then if it is vacant and you are not advertising then you generally could not claim any interest during this period.

Please explain?

What exactly could be less than 3 months/?

Nil to $20,000. Probably around $1000 to  $2000 for an average price – set up by a professional.

Stamp duty in NSW is $500

Company trustee ASIC fee is about $426 plus cost to set up company