Her property would be secured by a mortgage and cross collateralised with your property for your loan. If she defaults on her loan it would affect you because the lender would potentially sell her house. They would be worried about the security for your loan so they may ask you to bring the LVR in line with their lending policies – such as 80% LVR. If she dies the estate would still be liable for the guarantee with the property still securing your loan. For the executor to sell it or change ownership there would be new guarantees needed or your loan paid down – or LVR to 80%, but you would have plenty of time to arrange this. keep in mind your property may have increased in value too.

Yes merely registering a mortgage without it relating to a proper commercial transaction doesn’t give any asset protection, other than a smoke and mirrors approach. Someone glancing at a certificate of title may see a mortgage and just give up there and then – believe it or not this stops many.

But if there is any challange it can be easily attacked and set aside under several methods such as s301 Bankruptcy act http://www.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s301.html

You can’t gift equity in a property – the gift will fail unless the gift is delivered.

To register a mortgage is easy, just enter into a loan agreement incorporating a mortgage and fill in the real property act forms that go with it and lodge with the land titles office. This will then be a legal mortgage, as opposed to a equitable mortgage. BUt this doesn’t mean it provides asset protection, because a mortgage is a form of security – asset protection will depend on the strength of what it is securing. If it is a loan and no money has been transferred then it is not a loan!

(I reviewed one of these recently. A loan and mortgage was set up, but the loan was never actually taken out. no money changed hands)

try Paul at Price Financial
http://www.pricefinancial.com.au/

I have covered the sale to a trust in this thread with 2 or 3 variations:
https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/

Listed is a link to a private binding ruling that I obtained for a client. You can click on that link and read how the strategy works and the ATO’s response – saying the interest was deductible and why.
My clients were able to transfer a fully paid off property worth $1.2mil to a unit trust and they personally were able to claim the full interest on the loan of $1.25mil even thought the proceeds, indirectly, ended up paying for their new main residence.

Are you speaking to the broker about SMSFs? If so they need to hold an AFSL or be an authorised rep.

You are probably right about the commissions on the properties. Have they disclosed how much they receive?

There is nothing you can do in one hit to change deductibility as it stands.

However there are several strategies which I designed for clients. Some are potentially costly which could result in quicker deductions while others are cheap to implement but will have slow effect.

Here is a copy of a recent post:
https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/#postnewtopic

Not sure what you are asking, but the $47 only applies to the company acting as trustee of the SMSF. The annual fee for the custodian trustee company would be the normal one as it is not a Special Purpose Company.

BTW there is no law that you must set up a brand new company to act as custodian trustee.

Interest won’t be deductible if you are borrowing for a holiday.

Get some advice on structuring the trust as there could be some issues with it being controlled from overseas. legal and tax consequences.