Your dog is actually a client of mine. Is his name Boris?

No, I am located in Sydney unfortunately.

You need careful planning and consider the following:

– ability to get finance (most important!) without finance you are stuck
– structure. Sole name, joint names, trust – unit or DT, or company (no).
– injecting capital to the structure – gift or loan (probably loan, but from whom? interest deductibility considerations too)
– asset protection – think of divorce, death or bankruptcy of one or both of you
– land tax
– stamp duty
– GST
– CGT
– Income tax

Lin. Why do you want a trust. Ie what are you trying to achieve ?

eg.

$100,000 investment loan.
$1000 cash.

You could
1. Park the cash in the loan or
2. Park the cash in the offset

Interest result would be exactly the same

BUT

When you put money into a loan this is a repayment, and
When you take money out of a loan this is a new loan

So with 1, you put $1000 into a loan of $100,000 and the balance becomes $99,000.
If you take $1000 out of the loan to buy a new ivory back scatcher the loan will now be 99% investment related and 1% personal related.

Only 99% of the interest will be deductible.

If you were to do that the next month then the deductible portion will be $99,000 – ($1000 x 99%) = $98,001

You can imagine that after 10 years or so you could have a $100,000 loan still, assuming IO, but with a deductible balance of maybe $50,000.

Whereas if you had used an IO loan with a 100% offset then you would have a $100,000 loan with all of it deductible.

You can still claim all the normal deductions if you are not working, but your income will be limited so your may not get much back if any at tax time if you have paid no tax.

Tax will depend on a few things. Generally income of a SMSF is taxed at 15%. But the SMSF can claim the usual deductions.

If the fund is paying a pension then the income could be tax free.

Or go straight to the legislation:

http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

You should never use a trading company for a variety of reasons.

The main one is asset protection but another is for convenience.

When a lender lends to a company as trustee they will take a charge over the company's assets. If the trading company later enters into other contracts this can be a major drama as registering further charges could be a breach of the terms of the mortgage and the company may need the permission of the lender.

Well, I haven't really looked into this before.

I would imagine once the land is subdivided then only one of the blocks will be CGT free. So if you sell one immediately it may be CGT free and if you live in the other immediately it may be CGT free because it is your main residence.

First thing to do is approach the neighbour and tell him that you think his building is encroaching on your land. Let him respond and see what he says. He may want to get his own surveryor in and/or you can you him your survery.

3 m is a lot of land! Ask him to move his shed etc from your land. See what he says

You may want to look at

ENCROACHMENT OF BUILDINGS ACT 1922

http://corrigan.austlii.edu.au/au/legis/nsw/consol_act/eoba1922235/

but this may not apply for garden sheds. You may then have to take legal action to get him to move. You may have to share the costs of moving a fence. Best to do as much as you can without lawyers and then use them as a last resort.

Maybe also check out council plans for his structure, if there are any