Hi Scott

There is no reason you have to change title just to refinance. It is up to you as a personal decision.

Changing title means you a actually selling half of the house to your partner. SO you may need a solicitor, and will have to pay stamp duty on the value of the share transferred. If it is not your main residence, then you may also have to pay CGT. So it could be costly to do this.

Terryw
Discover Home Loans
North Sydney
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Suze

Why would it be better to buy in a company name? Companies do not get the 50% discount on CGT, so when you were to later transfer them to a trust, you would be charged 30% tax on the CG.

If something goes wrong, the bank may still be able to take your PPOR as you will be giving a personal guarrantee as Director, therefore your personal assets will be vulneable.

A far better option would be to buy the property in the correct structure in the first place. Trusts are usually the way to go. Talk to a good accountant about this.

Terryw
Discover Home Loans
North Sydney
[email protected]

A bird in the hand is worth two in the bush.

Terryw
Discover Home Loans
North Sydney
[email protected]

Just remember this is only an interpretive decision, not law. The ATO will probably pick a test case and go to court.

Imagine if you had wrapped in properties in one year, each with a $20,000 markup. You would not receive this capital gain untill years down the track, but may be required to pay $200,000 in CGT upfront!

What happens if the contract is terminated after you pay this CGT, and then you decide to just rent the property out normally.

You should probably start preparing now. Maybe lease options can overcome this. Maybe structuring the deal differently. Eg no markup, just a higher interest rate with a ‘fee’ at settlement.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Daa

Don’t forget the cumulative effect-saving interest on interest. Also to save $500 after tax, you may have to earn about $1000 before. Every little bit helps.

Terryw
Discover Home Loans
North Sydney
[email protected]

Do you have grounds to sue? If it was not a binding contract, maybe you can’t. You should have seen a solicitor to go over the contract, accountants and mortgage brokers aren’t qualified to give this sort of legal advice. I would definitly see a solicitor about this now.

Terryw
Discover Home Loans
North Sydney
[email protected]

From what I have seen Caravan Parks have small returns for the risk involved. I haven’t looked at Strata ones tho.

Terryw
Discover Home Loans
North Sydney
[email protected]

Depending on location, it may be possible to get 100% finance of these types of deals on the one security.

There are lenders that will lend 70% of end value. In this case, if they value up at $1,300,000. You could borrow up to $910,000.

But you will have to supply a personal guarrantee. offhand, I do not know of any lender that will lend to a company without a personal guarrantee.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi George

You can get a partnership agreement for about $220 at
http://www.lawcentral.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Hello Julie

If you are only intending to live in the property for a sort time and then rent it out, it may be an idea to consider purchasing it thru a trust structure and then renting it off the trust.

However there are a lot of things to consider. eg if you purchase in your own names and then move out later on, it may still be possible to sell CGT for a period of up to 6 years.

Better talk to your accountant about scenarios

Terryw
Discover Home Loans
North Sydney
[email protected]