Cata

Sounds good in theory, but it would probably be very hard to get a loan for something like that. It would be very messy.

Generally the loans will need to to be in the name each title holder. But what you could do is get 3 or 4 splits, with each split used exclusively by each partner. So each can pay as much or as little as they like. However each partner would be responisble for the whole debt. So if 3 of the 4 partners refused to keep paying, the 4th will have to pay etc.

Terryw
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Yes, LMI is a borrowing expense and can be claimed over 5 years or the term of the loan if you refinance earlier.

Even if you initially lived in the property, you should be able to claim the LMI, possibly 100% of it.

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You should take into consideration your views on rates, but also the inflexibility fixing creates – it may be harder and more costly to change lenders. And this could hinder your expansion.

Terryw
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Also consider Dale Gatherum Goss. http://www.gatherumgoss.com

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Hi

It is very confusing. My understanding is that in Victoria, the trustee must pay an additional surcharge as well as land tax. But the trust may nominate a beneificary who can pay the land tax on behalf of the trust, and I assume get some relief with the tax free threshold. But a beneificary paying the land tax may not actually be able to claim a tax deduction. see http://www.moorestephens.com.au/main/newsandevents/documents/Land%20tax%20concession%20for%20discretionary%20trusts%20has%20income%20tax%20sting%20in%20its%20tail.pdf

As far as I am aware, the main benefits of a property investors trust may have gone out the window now that unit trusts are considered the same as discretionary trusts for land tax purposes. ie Land tax should be the same in this trust as any other trust. But it may still be worth having a unit trust with the units held by a discretionary or hybrid discretionary trust for other reasons.

There are no annual fees for a trust. A tax return must be done and there are accounting fees for this. But it shouldn’t be too much extra compared to owning the properties in your own name.

WIht companies there is an annual ASIC fee of about $400, and a tax return as well.

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Smarter to rent in many cases. You can still claim your sydney home as the main residence for 6 years and get deductions on everything, and not living in your gold coast home means you can claim everything on that too.

But all this will depend on loan sizes and incomes etc.

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You could try and locate Lewis O’brien in Melbourne. He is the wrap expert down there. Sorry don’t know anyone in Canberra. Tony Cordato in Sydney may also be able to help, http://www.businesslawyer.com.au

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You will have to ask the bank. Generally loans must be in the same names as the title of the property, but with spouses there can be exceptions. Not sure of ANZ’s take on this tho, probably would have to be in both names. Either way you partner would have to give income details etc as if they were not on the loan, he or she would have to guarrantee it.

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I did this a few times last year when I was in Thailand. Its amazing isn’t it – free international calls.

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I have just started doing my own tax again after many years. It is a great way to learn taxation issues.

Nats, if you are a bit worried, why don’t you do everything yourself as if you were going to lodge it, and then give it to your accountant. See how you go, if the accountant doesn’t pick up anything you have missed, consider going on your own next year. Thats what I did for a few years.

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