You should both probably have insurance. Who owns the building? You do still as you have your name on title, but the other party has purchased it from you, so they have equitable interest. They would want to protect their asset and you your asset. Not worth worried about a few hundered $$$ – if that.

Can you use the equity? Probably yes, but you will be discharging the mortgage on the property at settlement, so you won’t have much time!

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Yep, if your company pays you, then you will have to pay tax if your tax rate is higher than the company rate.

There is no way around this if you only have yourselves as beneficiaries. You could possibly claim some expenses if you could justify this. eg employing other people. company car etc. But if the expenses are not related to the company’s profit making activities, you may have a hard time justifying it.

This is not covered in any of those books to my knowledge.

Ideas anyone?

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I beleive you have to leave permanently. They are wise to many people going overseas termporarily and claiming they have gone forever, so the rules have tightened up. I think you will find this info and the ATO site.

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They’re not.

However, most lenders offer the same commission rates. It is only the smaller non bank lenders that offer more.

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If you are going to struggle, it may be better to sell a property.

If your loans are PI, changng them all to IO may be possible and this may help your cashflow.

Perth seems to be the only place growing at the moment, so it may be better to keep a bit longer if you can afford to do so.

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There are many ways.

1) sell an option on a property, and charge a higher than normal rent. SOme of the rent then goes towards reducing the purchase price the tenant will eventually pay.

2) sell an option, and then give the tenant a discount off any future purchase of the property. eg. pay $x per week and after 1 year you can buy the property for 10% less market value.

3) sell an option on a property, and charge them a fixed price for the property. ie no rent credit. The longer they last as tenants, the cheaper they can buy the property compared to market rates.

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Hello Mark

It is easy to change a trustee, just a minute will do I beleive.

However, if you have loans in place the loan will have to be redone, and the title to the property will have to be changed to the new trustee. But I beleive there is only a nominal charge for this at the Land Titles Office. (LTO).

Also you would need to probably get some legal advice, especially if the trust already owned assets. In some cases changing trustees may cause a resettlement of the trust. This means a new trust is considered to have formed. If that happens, then CGT and stamp duty may be payable on all the assets held by that trust – just as if one trust sold them to another trust.

Also, having a corporate trustee on a hybrid can make things a bit more complicated when it comes to finance. This is because the title will be in the company name, but the loan needs to be in the unit holder’s name. Some banks have a problem with this.

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Hi Mancityfan

You do not need a contract for equitbale interest. Just think of someone married, but the property is in the husband’s name. THe wife will have an equitable interest in the property due to her relationship to the husband.

Also you could have lent money to the owner of the land, have a mortgage over hte land, and I think this would give you an equtiable interest.

But I am not a lawyer, and haven’t studied this – but would like to!

And another point, a option is a contract. (in most states you only have stamp duty on the value of the option contract, not the Contract of sale, when buying a option)

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I’ve just seen a family with big problems at least partially caused by a broker. Since there were 4 family members wanting to buy their house together, the broker suggested they use a company. Unfortuantely they did. So for the past 10 years they have been paying an extra $7,000 pa in land tax, and now when they are going to sell they will be up for a huge tax bill – purchased for $300,000 selling for $1,500,000!! probably around $360,000 in tax unnecessarily. All because of the broker’s suggestion.

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Hi G.

Don’t get too excited yet!

Some points to consider:

1) In this case, the developer has probably increased the purchase price so he can give a bit back to you.

2) It may be tax free if owner occupied, but if investment it would need to be taken into account when you sell for CGT reasons.

3) Will the developer let you chose the bank and valuation company or will they control the valuations – ie get a friendly one?

Valuers are well aware of rebates, and take these into account. If everyone is getting a rebate, it will probably value in at the amount less the rebate. So will they sell at this price if the value comes in lower than expected?

It may still be a good deal, but be careful with buying off the plan in this sort of market.

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