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  • Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I’m not expecting any significant capital growth in a long time.

    If this is the case what is the point in investing in this property? What will you get in your pocket? each year. How much after 5 years?

    Where is the $25k deposit and costs coming from? Have you factored in the interest on this? Even if cash it would mean an opportunity cost.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Firstly are you able to sub-divide before building? Your question above should be addressed to a town planner, but in the first post you appeared to mention transfer of titles. This has implications which should be put to a lawyer.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    If you had all of your loan contracts properly signed and returned before the bank’s cut off dates then it may be their fault and they may pay. If not it doesn’t appear their fault, but they may still pay – all or part.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    I haven’t read your post, just skimmed it (too long) but research ‘deed of partition’

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    You should see a lawyer for advice before starting as there are strategies to save stamp duty and potentially CGT.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes. But not just intention, but the events themselves. So if you intended to buy land construct and sell then this would probably not be taxed as a capital gain, but income. If you can demonstrate you intended to hold, and took steps too, but circumstances changed, then it might be taxed as a capital gain.

    Don’t forget GST too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    contract date for the land generally.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    You can’t sue a company that no longer exists. Where a company is deregisered and it owns property this property vests in ASIC http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s601ad.html

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Apply to the supreme court to appoint a trustee and have the trustee force a sale of the property. This is needed because both parties are needed to sell. The other owner could also be dead. If that is the case their executor needs to be tracked down, or someone has to apply for probate or administration. Their estate can be sued for their share of the fees and land tax too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    parties can only charge what is agreed to in the contract. If the contract was a NSW standard contract of sale then the vendor can charge the purchaser interest for late settlement. After 14 days they could even rescind and keep your deposit – subject to the exact agreement. Other states have similar issues. So you may have got off lightly. I am not sure why, but all of these off the plan matters seem to settle around christmas for some reason.

    If it was the bank that caused the delay then they will generally reimburse you for additional expenses such as this so check with your broker. Even where it is not the banks fault blame them anyway and ask for compensation and they will probably give you some without digging too deep.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    This may be a mixture of tax advice and general property advice (no licence needed for this). There are some financial planner type companies that supposedly specialise in property related advice, but the fees for a ‘plan’ can be $3000 upwards.

    Why not just put some details on the forum for general suggestions?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    If you use your deposit it will be difficult to double it. You might end up with none for your settlement.
    Also from a tax point of view you will have less deposit and therefore need to borrow more for the home and the interest on this would not be deductible.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Funny you should mention ‘loan structuring’ as I own a mortgage broking company called “loan structuring Pty ltd”. I am based in the CBD.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Pass mark is generally what you said the property is worth, as well as there being no adverse issues such as being uninhabitable and/or high risk ratings.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Also consider a trust is not the only option. A not at risk spouse may be an appropriate owner. This can also be set up where there is little to no asset protection or set up well with stronger protection – against creditors, but new family law risks emerge.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    1. could be exempt if you choose (optional)
    2. If you choose to exempt the melb one

    2. Any new main residence could be exempt.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Good point CRJ and these costs will add up over time.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
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    Post Count: 16,213

    I am a lawyer specialising in asset protection. I have half finished a book on the topic and am still finding out new things each day it is a very complex topic.

    It is not as simple as setting up a discretionary trust. It is important how the trust is set up – who takes what roles, the terms of the trust – some ways to set up will achieve little asset protection and how you cause the trust to transact. Do it wrong and there will be little asset protection.

    And before you set up a trust to own property in NSW you have to ask yourself if you are so worried about asset protection that you are willing to pay 1.6% pa in land tax each year?

    It sounds like you are concerned about creditors in bankruptcy, but also consider other aspects such as asset protection in death. Trust owned assets cannot be willed at death so you have to carefully pass on control of the trust so it doesn’t fall into the wrong hands.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    So I decide to sell the Melbourne Property and nomianate that property as my PPOR. the sale proceeds will be CGT exempt.
    What if, after 2 years, I decide to sell my Brisbane Property that I’m currenytly residing in. Will the sale of the Brisbane Property be subject to CGT?
    ThanksAM

    if you sold it within 6 years of moving out then yes it could be exempt. But your new one will be subject to CGT.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,213

    Hi Terry, In respect of this answer:-

    2. depends. You will only be able to claim one of the houses as the main residence and get the exemption. So you would generally reassess things in a few years and see which one has grown the most.

    I had previously heard that this “nomination of PPOR” can take place like you said – years after the fact, and you may choose which one to go for.
    But then, in my own situation, I had the State Govt requesting I nominate my PPOR so that they knew which house to exempt for Land Tax. So where does that leave us in the above situation (where we want to “hold off nominating a PPOR”? Is there a way where we can satisfy both State and Fed while still holding off on the PPOR nomination?
    Interested to hear the answer, and thanks in advance,
    Benny

    Land tax is a whole different situation. A house could be you main residence for CGT purposes (commonwealth law) but not for land tax purposes (state law) or vice versa.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 20 posts - 1,261 through 1,280 (of 16,319 total)