Hi Gordon

I think you can distribute to a newly formed trust. eg. in one of my deeds it states that a general benficary can be the trustee of any eligible trust. An eligible trust means any trust under which a beneficariary has any interest.
But I do not know all the tax rules regarding this issue – but would be interested to find out.

Ian, beneificaries can be anyone your want.

Terryw
Discover Home Loans
North Sydney
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Andrew, good strategy which should be OK as you are purchasing another 49% of the property, so can borrow the money to do this. You wife can then use the proceeds to pay off your PPOR or other.

Terryw
Discover Home Loans
North Sydney
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My advice is to not rely on accountants entirely. They get it wrong, and some do not specialise in this area so don’t really understand.

It is best to read as much as you can on this forum and others, but read critically as you don’t really know if you can trust the information given. Then read up on the various papers on trusts and structures etc available. Then you should have a reasonable idea of what you want before you go and see your accountant.

Terryw
Discover Home Loans
North Sydney
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You need to list your purchase price.

Asa rough rule of thumb, selling price less purchase price gives the gain, you then get a 50% discount, then divide into 2 and this amount goes ontop of your other income.

Terryw
Discover Home Loans
North Sydney
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In NSW, Stamp duty is payable within 3 months of exchange of contracts. Even on wraps.

Terryw
Discover Home Loans
North Sydney
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At such high fixed rates, the exit fees for your current loan could be enornmous. Have your inquired what these will be? It may still be worth leaving.

I agree with Steven, it is better to get money release and use that as deposit for further property. Taking your values as given, this could give you an extra $104,000 to play with, enabling you borrow another $400,000 or so (providing you can service the debt).

Good current rates are around 6.45% for IO or PI

Terryw
Discover Home Loans
North Sydney
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Hi Ian

It is still worthwhile considering using a trust. You never know when your situation will change. eg you could get married tomorrow, then your new spouse and her relatives would automatically become beneficiaries.

You also have the option of forming a company later on and having that as beneificary too (or even another trust).

Terryw
Discover Home Loans
North Sydney
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Ni Hao

A friend of mine purchased an new apartment in Shanghai city a few years ago. She is Chinese, but no longer a citizen, but was still able to get 70% finance. It was positively geared from the start, and has since more than doubled in value.

I think China is good value, but maybe you have missed the boat? Beijing is also booming because of the olympics (and other reasons). And the laws have also been changed recently regarding property ownership, making it more stable.

Terryw
Discover Home Loans
North Sydney
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Cia

Trusts cannot distribute losses, but they can be retained and offset against future profits.

Have a look at Hybrid Trusts. You may be able to get around this buy using a hybrid trust and borrowing the money in your own name (not the trust) so you can claim the interest on your personal income.

Terryw
Discover Home Loans
North Sydney
[email protected]

You can wrap any property. including highly priced Sydney property.

Terryw
Discover Home Loans
North Sydney
[email protected]