Yes Michael is right. It is not likely that anyone would be able to get a property that doubles in 12months within this climate. I actually thought of another one after I posted. 2 of the clients were in smaller country areas -mining towns, but the third client did it in Sydney, a few years ago, by buying a housing commission house (where she was the only bidder at the auction). A cheap reno and a bit over a year later, it sold for nearly double.

Terryw
Discover Home Loans
North Sydney
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Hi MattR

My understanding is the titles have to be changed to the new trustee’s name, but there is only a nominal fee at the State Revenue office to do this as the beneficial owners remain the same.

ps where are you studying law?

Terryw
Discover Home Loans
North Sydney
[email protected]

Dan

LVR in both your original scenarios would be the same – I think you realised this.

And I agree with Richard’s approach. Maybe you could take ANZ’s standard rate for the new loan and get the offset account on that one. You could also approach them about switching over the original one too and maybe going onto their professional package.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Bruce

I found your original post confusing.

One the one hand you are saying trusts are not really necessary, then you go on to talk about ASIC and director’s duties.

My point was if you did hold you assets in a trust (done properly) and you were pursued and bankrupted (by ASIC or anyone else), then your assets held in trust would have been safe. Even if you were in the wrong and deserved it.

Just think of two recent public cases with the directors of HIH and that liberal politician in VIC going bankrupt after a clash with ASIC.

Its true what you say about being sued. You could liquidate some assets held in a trust to pay your costs, or you could just keep those assets there and declare yourself bankrupt. With a trust you would have the choice of whether and how much you would pay, without you may be forced to give up the lot.

Terryw
Discover Home Loans
North Sydney
[email protected]

Yep. date of contracts is what the ATO goes on.

Terryw
Discover Home Loans
North Sydney
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Just think of it this way, the wrapper has pruchased the proeprty, it the eyes of the ATO, this is a sale as contracts have been exchanged. Therefore I would assume they could claim everyhting that a ‘normal’ owner could claim the wrappee could claim.

But I an not an accountant so this may be wrong.

Terryw
Discover Home Loans
North Sydney
[email protected]

I think legally they would still be the same person so there shouldn’t be any problem.

Terryw
Discover Home Loans
North Sydney
[email protected]

If the trustee was the husband, renting the house to the wife would put a bit more distance between the two. Renting your house to your brother etc would be even better. He could always let you stay there with him.

Terryw
Discover Home Loans
North Sydney
[email protected]