How are you proposing to own the properties? Sounds like 4 names and this may need a rethink for a few reasons such as:
– joint and several liability = risk
– effect on borrowing capacity
– land tax
etc

It may work out better to buy 4 properties in one name each rather than 4 in 4 names.

Investing in property is not generally considered a business.

Best to speak to a lawyer about asset protection. Accountants don’t know about the laws of ‘equity’

The reason to have a company as trustee is because a trustee is personally liable for the debts of the trust. a trust is not a separate entity but a relationship with the ownership of trust assets being in the name of the trustee. So if the trustee is sued the assets of the trust will be at risk and if these are not enough to satisfy a court judgement, for example, the trustee’s person assets will be at risk. A company is a separate legal person separate from its directors and shareholders and liability is usually limited to the company’s assets – which will be $2.

There are other benefits of a company trustee. Control can be passed without transferring title for instance.

You need your crystal ball – if you think it won’t grow by at least what it is costing you then it may be work selling.
Even if you think it will grown more you have to weigh up the opportunity cost of it tying up capital and/or preventing you investing elsewhere.

You should split the loan into 3. Original purpose loan, and one new loan for use of each property.
Not due to APRA rules but because of tax law. Interest is deductible based on purpose and use of the borrowed funds, therefore you need to claim interest against the property the borrowings relate to. This is best done with separate loans. There would also be mixed loan issues if you don\’t split.

It is always best to plan ahead as circumstances change. Owners die and heirs sell too

hi Rob

Your daughter could get the main residence CGT exemption and/or th e 50% CGT reduction which you cannot, assuming she is a tax resident which she probably would be if studying here. You lend the money so you can take a mortgage over hte property and retain some control in case she wants to sell the property or goes through a divorce. If you die your money lend can be left by your will.

Yes children can enter contracts under certain circumstances.

Get some legal and tax advise as well. No main residence exemption and no 50% CGT discount. How are you going to fund it? Perhaps you could lend money to your daughter who could buy it.

Depends on the circumstances. You should seek specific tax advice on this complication area. You may or may not be entitled or required to register for GST and CGT may or may not be applicable.

Wez2014 wrote:

How are they to know if it is intentional to make $$?
Seems to be a grey area to me?

Yes it is grey. If they investigate they will look at the circumstances of why you keep buying and selling. If you are a registered builder that won’t help, if you are doing renovations and adding value then that will go against you too.

There is no limit, but if you are doing this with the intention of making money then it can be taxable regardless of if it your main residence or not.