In that case, then since the first property and the second property will become an IP it doesn't really matter which way you go. You would take the money from the offset or from the paying in and redraw.

Is there any chance one will become a main residence at some stage? If so you may want to aim at reducing this loan and maximising the other.

Ideally
1. no
2 no
3 no

Borrow the deposit if you have the equity.

You could possibly avoid CGT depending on the circumstances

Trusts are usually set by by a settlor giving a trustee $10 or so and asking them to hold it on trust for a group of beneficiaries. The terms of the trust are documented in a deed and this deed governs the actions of the trustee and specifies what they can and cannot do – such as borrow money, mortgage trust property, invest in businesses etc

The deeds are not registered. It is just a private arrangement really. In some states such as NSW stamp duty must be paid on the deed and this is $500 if the settled sum is just $10 or a nominal amount. This is done at the Office of state revenue. You post or take your deed there and they will stamp it on the spot. They don't read it or keep a copy.

Where a deed needs to be stamped will depend on the location of the parties. I think the rule is that if any one of the original parties residies in NSW then the deed needs to be stamped here, eg settlor, or trustee etc

Each state has its own legislation regarding trusts – Trustee Act in NSW, Rules are different in each state too. So the trust deed needs to specifiy the governing laws – ie which state. This is separate from the stamping and could be different.

I believe that trustees do get a separate land tax threshold in qld but am not sure on the details. In Nsw a discretionary trust gets no threshold so using a trust may result in more land tax there.

Trust assets don’t belong to you. So they don’t form part of your will. You need extra planning on succession with a trust when you die but there would be no cgt or stamp duty. There would t be any either if held in your own names. One advantage in your own name is that Eli could pass on to your kids in their own names so that they could live in the house cgt and or to a testamentary trust at death which may have more tax advantages.

Many other things to consider too

You haven't given enough information to make an informed assessment.

But, think long term. Consider all issues, such as land tax, income tax, CGT, death, asset protection etc.

C2 no pm received.

I will be getting into Osaka next tuesday

That book is misleading. Structures don't really help like that.

If you want to plan on maximising borrowing cap then best to speak to a finance broker

Dont do it that way. You will be putting yourself at great risk.

There may not be any stamp duty at all, it would depend on what the assets are and the State the business is located in. Your solicitor can advise you. So changing the trust and causing a resettlement may not be a big issue from a stamp duty point of view. But there is also CGT to consider.

What you should be concerned about it legal liability. How do you know there are not legal issues which haven't arisen yet? You could enter a contract for the current people to indemnify you, but what if they went bankrupt. An extreme eg maybe but what if the commpany didn't pay GST for the past year. You jump on board and they ATO gives the company a bull for $200k. Company cannot pay so they may come after the director – which could be you.

Take my advice and seek legal advice about this. You will not find a solicitor who would recommend you take over a discretionary trust and trustee company. It would be costly to set up too. You would have to change directorships, share holdings, trustees maybe, appointors and beneficiariies.

Using a trust makes it easier to get finance in this regard as you can introduce income guarantors easily without having to change title. This is especially good if down the track, after owing the property, if one person was to get a credit blemish.