Not sure really. Stamp duty may depend on which state you are in. Probably it is best to check with the office of state revenue in your state.

I doubt you would be able avoid CGT if it is an investment property.

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I am not sure Steve suggested selling. I know from various seminars etc, then he has suggested paying down loans, even on investment properties, so as to reduce risk.

Some of my clients have made spectacular gains in WA, with a few selling and paying the proceeds off their home loans. The market over there may keep rising for a while. Afterall, many in other states are now thinking WA is the place to go as it is the only place rising.

Just becareful as prices can drop if the boom suddenly stops.

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On the other hand, I may have to disagree with myself.

First you would have to determine if the real estate agent owes a duty of care to you the tenant. Is this established in law? If it is not established then there is no duty of care.

It is like someone saying it is safe to cross the road, you cross and get hit by a bus. You cannot sue them as there is no established duty of care between the average person on the street and yourself.

I don’t know the case law in this area, but you would suspect an agent is a professional, that is what you pay them for, so they have a duty, but this may not necessarily be so.

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Roodog has pointed out you would not be paying stamp duty twice, just once on your share in the begining and again on the remainder when buying them out.

How have you owned the property? Trust or company? if so there may be ways around it.

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The cashflow people tend to dislike negative gearing as they say you are making a loss in the hope of making a capital gain later. There is no guarrantee the gain will come (just as there is no guarrantee the sun will come up tomorrow morning )

Ideally it would be great to have positive gearing and high growth, but unfortunately it doesn’t always happen like that. So high growth property is usually negative geared.

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I just claim against self education – think that is the correct section.

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Hi Mitzvah

A tenancy agreement is just another name for a lease?? The option is a separate contract.

In some states, such as NSW, apparently you can pass all expenses onto a tenant, but if they were to take you to the tribunal, they would be very likely to win and you would be ordered to reimburse all expenses.

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Daniel

The loan only starts at settlement. So if you can on sell before hand you will just be up for the interest on the 10% (or lower) deposit – if you borrowed that.

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My non legal opinion is that agents have a duty of care, and this cannot be contracted out. So if something happens that is their fault, then they could be sued.

I suppose it is like a doctor doing an operation. They may get you to sign all sorts of documents, but if they do not take adequate precautions etc they can be sued.

Better ran this by your solicitor if youare worried?

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Hi Arthur

Richard has given a good reply to your first posts.

Having a company or a trust will not help with making finance easier. Lenders will look at the individuals behind these entities.

If you wish to keep going on forever, then it is possible if you have either income or equity. You may just have to try a few differennt lenders.

Having a business name will make no real difference. A business name is not a structure, but merely a name which companies of individuals can trade under.

Buying renovatons under a company/trust is a good idea for asset protection and taxation reasons and you should probably be looking into this area if you plan to do more than 1.

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