I beleive in NSW stamp duty is payable within 3 months of exchange of contracts for wraps.

With Lease options there is no exchange yet, so no stamp duty issues until down the track – as Craig has written.

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Yes it is. But not against income tax, only against capital gains on sale. (But I beleive that in Canberra stamp duty can be claimed.)

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Hi

With a hybrid, the unit holder borrows money from the bank to buy the units (not the house), the trust lets the property be used as security. Then the unit holder can claim the interest on the loan against their other incomes. Losses still cannot be distributed from the trust, but because there is no loan, there will hopefully be no loss.

If there is no CGT, then I would suggest you try and get the value up as high as possible. This will help you borrow more, as well as reduce CGT if you were to ever sell.

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Hi

You should be looking for a loan with low exit fees, and/or portability – so when you sell you can take the loan over to the new property.

probably put up at least a 20% deposit to avoid mortgage insurance. Putting up more will save you a bit in loan stamp duty, but it may be best to keep a bit spare for costs.

I have really done something similar, but i would be looking for an annual profit similar or higher than what you would be getting if you were working – otherwise you will be going backwards.

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Usually people just don’t tell the ATO! but this would be illegal of course.

Have a look at the story on Hoges in todays SMH. http://www.smh.com.au/news/national/crocodile-dundees-tax-trail/2006/07/24/1153593272499.html

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I think if the home can be legally used as a residence, then it will be ok:

“an eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that lawfully can be used as a place of residence.”

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Generally many lenders are a bit worried about petrol stations as there many be contamination or environmental issues. So probabbly around 65% would be the max loan available. Arab bank is apparently good with petrol stations.

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Hi Lyndon

I agree, but beleive you actually have a choice on which property to claim. Maybe the old property would be growing higher during this period. It that case it may be better to claim that.

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