Yes, this doesn't make sense at all.

The bank is owed $1mil but they are willing to sell the property to a third party for 35% of this amount.

Having a caveatable interest would no give priority over a bank holding first mortgage. Even with a caveat the caveatee would probably just be an unsecured creditor and would have to wait in line with all the others.

I think it is just govt employees that are restricted?

councils don't approve renting houses. If you have an occupancy certificate then it can be lived in and it is up to you how much of the house you want to rent out.

What is there to ask?

If you want to ask about rental subsidies you would be able to find out from centrelink. But why worry about this as this is a tenant's problem. I imagine that as long as they qualify and have a written lease then they could get a subsidy.

If you are joint owners on the property then the other owner will also have to go on the lease. You can talk to your lawyer about leasing issues.

First question was regardin the complications I think

Well, the tenants won't pay electricity so you will have to work out a formular with the other other on how much you will pay. Same with water – maybe you can charge tenants for usage but better if you build this into the rent i think.
 

Ray,

You are embarrassing those companies you keep mentioning in every post. So far you have made 14 posts and all providing a link to a related website. 

Whats the deal? Are you involved in the company in any way?

You could make a large donation to charity to get your taxable income down.

If your properties are in Vic, you may be able to transfer ownership without stamp duty – or nominal $50. But there may be CGT to pay. Maybe consider prepaying interest for one year to bring forward some deductions.

But, I am not sure if increasing your deductions will actually help with the family assistance.

Yes you can rent it out, but there will be a few complications. Tenant could claim rental assistance etc too.

The law is likely to change? That would be hard to predict unless the government has made some sort of announment re this.

I think you can only go on the current laws and to consider what the effects would be if there was to be a change.

$500 stamp duty in Nsw on a nominal settled sum. It was only $200 a few years ago too