Or, use an independent buyers agent.

Terryw
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I think the returns would have to be much higher for a risky business start up.

I have seen investors offering 15% pa for borrowing money for property related investments – relatively safe.

For most businesses I think you should expect more than 100% pa. If you are going to be making that much money, you could afford a hihg return.

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I agree with Derek, but more specifically beleive it is actually the date of the contract when the contract goes unconditional. ie you might sign today, but with a subject to finance clause which isn’t satisfied for a week. better check with your accountant to be sure.

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It would probably be cashflow postive, but that does not necessarily make it a good investment.

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You never lose the equity by selling, but you have to look into capital gains tax.

Now it would appear your apartment is exempt. You could probably sell now or within the next 6 years and still claim this exemption. But you can only claim one property at any one time, so if you had a period where you owned 2 properties, you have to chose between the 2 – for the main residence selection.

Better talk to your accountant. It may be wise to get an independent valuation done now.

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I have concerns about these sorts of things.

Firstly WA seems to be booming now. Who knows what will happen in 2008. Be prepared for the worst.

2nd, going thirds. Did you know when you go for finance in the future, you will be assessed as owing the whole amount (if there is a loan) but will only be able to take into account 1/3 of the income.

3rd, getting finance for these sorts of things can be very hard

4th possibly hard to sell due to the specialised nature of the market.

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hi Stuck

from
1) $175 http://www.cleardocs.com.au
or $275 at lawcentral.

unit trusts are a bit more. Bare trusts are available on Law Central, but you could easily set one up yourself.

Hybrids are not available on these sites. Set up is about $1200

Online they can be estalished in 5 min.

Please join lawcentral and go thru the process of setting up a trust – no cost unless you want to proceed to the end.

BUT, if you are unsure, then you should probably go through an accountant to set up your trust initially. costs about $1000+

Process:
1) get the trust deed online or from accountant
2) sign it, with witnesses
3) get ABN, TFN
4) Pay stamp duty ($200 in NSW, Nil in QLD)
5) start using it!

Terryw
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On some fixed loans, there are penalties for paying extra over a certain amount.

Also, many fixed loans do not allow a 100% offset account to be linked.

One more point for variable is, what if you want to change lenders mid way through a fixed loans? Maybe to be able to borrow more money for a new ppty. If you have fixed, there could be large exit fees.

Terryw
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If the mum has no property, what about buying in her name? That way when sold, there will be no CGT. Check with an accountant on what effect this will have on her pension etc.

I beleive a 12 year old could own property, but cannot get a loan. Not sure of the tax implications tho. Children are generally tax at around 66% on income above a certain amount (approx $800 pa). So if the child does not live there the ppty may be subject to CGT. Again, better talk to an accountant about this.

Terryw
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I am based in Sydney, but am currently in Bangkok. If you send me some details, I can work it out for you.

Terryw
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