Interesting questions.

The interest on money borrowed to invest in a term deposit with an interest rate lower than the loan rate normally woudn’t be deductible as it is not a commercial transaction.

But if it is temporary and the new security also becomes an IP straight away then it may be arguable that it was done in the production of an assessable income. I don’t know the answer, so make sure you get some tax advice.

Thank you wisepearl.

A caveat is not a form of security, but just is notice that someone else has an interest in the property. I am not sure how a trust could have an interest in the property that you as an individual would buy, but maybe the trust provides the deposit money and thereby has an interest.

Not knowing the full details, but this sounds like an uncommercial transaction designed to defeat creditors.

In NSW it could be void under s37A conveyancing act. There would be similar provisions in other states
http://corrigan.austlii.edu.au/au/legis/nsw/consol_act/ca1919141/s37a.html

Under the Commonwealth law you have provisions under the Corporations Act and Bankruptcy Acts which may apply.

For example.
s301 Bankruptcy act
http://www.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s301.html

s588FC Corporations Act
s588FDA Corporations Act
s 588FE etc
may also apply.

Yes, there are so many people out there who are worse off because they don’t know certain things.

For example there are people out there paying more tax than they should be, missing out on allowances, missing out on centrelink benefits etc because they just don’t know. Others are paying more interest on home loans when they could be getting a refinance at a cheaper rate.

Send them a demand for payment and threaten legal action. Give them say 7 days to pay

Then start court action by issuing a statement of claim in the local court. You could do it yourself without a lawyer. Just doing this will make them get a move on and pay you.

That won't help because there would be a loan from property B which would need to be paid back when A is sold.

The yield is irrelevant to the agent. What you want to be paying is market rates or slightly under for giving him multiple properties.

I think 8% is pretty standard for NSW so you are getting slightly under. If the rent is $300 pw and you get a 1% reduction  that is going to save you only $3 per week. Why not work with the agent and work out ways to increase the amount of rent on the property. That way you both can benefit.

Might work out cheaper to get income protection insurance.

Option 4.

Buy a PPOR now get the FHOG and stamp duty concessions if possible (New concessions announced yesterday in SA for apartments, but may not suit you).

Move into PPOR to establish it as your PPOR. Get IO loan, 100% offset.

Move out and rent your PPOR.

Moving in will allow you to establish it as your main residence and keep it CGT for 6 years while renting it (under certain circumstances). And you can get the grant etc. Then renting will allow you to claim all associated costs with the property and to reduce your income tax.

Best of both worlds, but a bit of hassle moving twice.

NEver heard of it.

What law was changed? Sounds like a conspiracy theory to me.

Wow, have you added up all the savings???