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  • Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    This is why careful record keeping is essential, and this is even more important for when you die because the executor and/or beneficiaries need to find this information.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    when it has increased in value enough

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    yes

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    the cost base is basically what you pay for a property plus the costs you haven’t claimed – stamp duty etc.

    When you inherit a property you generally inherit the cost base of the deceased. So it is as if you are them. What they paid for the property, their stamp duty etc is what you are considered to have paid for it.

    The clock only sets to zero if it was the main residence at death.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    1. Exempt from CGT if sold within 2 years. Thereafter if you rent it the cost base will be the value at death.
    2. Cost base will be his cost base.
    3. cost base will be his cost base.

    Confirm this with your tax advisor as I have made a few assumptions.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    You need to speak to a lawyer – about stamp duty and CGT which would be triggered if the ownership changes.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Don’t you need the diploma course now, and not just the Cert IV?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    AAMC is where I did mine. Good place to do it.

    I would probably just recommend the cheapest place you can find as the course itself is not something you can really rely on for knowledge. You get that when actually doing.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    I’ve never looked into this, but a colleague did a conveyancing matter where the vendor used a put and call option to delay entering the contract (but lock it all in) and when asked why they stated for CGT reasons.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    In that case you have to consider what would the opportunity cost be of tying you your deposit and borrowing capacity in an asset with no growth – what could you have done with the money instead?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    This year

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Sounds like the sales person has already decided what you need before they have met you or know anything about you.

    Sounds like your superannuation guy is looking out for himself too. What is his commission?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    It would have been pre CGT, but subdivision would change this. It probably could be sold and the main residence claimed if they had lived in both sides of the house, it was rented for less than 6 years, they had no other main residence which they claimed and they moved back into both sides of the house and it is on less than 2 hectares and hasn’t been used to produce income other than described.

    They need to seek specific tax advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Was that person a property advisor or a sales person in disguise? The differences is mainly the fact that the sales person has already decided what you need before they have met you or know anything about you.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    entire

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Here is a link to something I wrote explaining ‘all monies’ clauses. https://www.propertyinvesting.com/topic/5025757-what-is-an-all-monies-clause/

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    If a borrower doesn’t pay the bank will take possession of the house, sell it, and recover the money they lent and the associated recovery costs. If they property is valued at $800k and they only need to recover $400k it should be pretty simple. Not sure why they would contemplate sending someone to london to investigate – even if you had hidden assets in London, they are not out of pocket.
    If the mortgagee did do something totally unnecessary and unjustifiable you would be able to argue to have these costs excluded from your debt. This doesn’t make sense to me.

    You would have all the usual selling costs and legal costs which would vary depending how long it drags out – say $10k to $20k usually.

    Yes the owner would get back any excess money – the mortgagee would be holding that money on trust for the owner until it passed back.

    An unregistered mortgage isn’t indefeasible as it is unregistered. Lodging a caveat doesn’t register it, the caveat just notifies others there is an unregistered interest. It may give priority over other non registered interests though. To make the mortgage stronger it should be registered.

    There is also a section in the bankruptcy act which makes contracts and deeds void, including mortgages, if they are undermarket value or done to defeat creditors. So would is the reason you would be giving a mortgage to a trust? You may use the gift and borrow back strategy. Gift money to the trust and then borrow it back but give the trust security for its loan. However then your gift is subject to the clawback provisions of s120 and also the s121 and even the conveyancing act -s34A i think in NSW – if you are trying to defeat creditors.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
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    Post Count: 16,213

    It would depend on how you are set up now.
    PI loans can help
    Related party loans can help
    joint purchasing could help
    sale of one or more could help – but consider whether you could borrow to buy the replacement

    etc

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    What does she fear about an ‘all monies’ clause?
    If someone ends up bankrupt the bank can use its mortgage agreement with the borrower to secure all monies owed to it.

    So I guess you are asking if there is a second mortgage to a related trustee would the bank take priority over the 2nd mortgagee. I think that will depend on the wording of the clause, and the circumstances. It did happen in a NSW SC case Meldov Pty Ltd v BOQ [2015] NSWSC 378

    But usually the amount owed to the bank would be less than the property value.

    A caveat is just notification to the world that someone other than the legal owner also has an interest in a property. It is not a form of security like a mortgage.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    in the year 2000 these were going for about $150k. What are they selling for now?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 20 posts - 1,081 through 1,100 (of 16,319 total)