Sounds like they charged you a fee for things which others provide for free. not sure if any of the above are something FOS can investigate. You seemed to have entered a contract with them to provide services which they provided.

Maybe contact the dept of fair trading in your state first, and ASIC investigate these marketing schemes involving paying the home loan off sooner.

You should retain evidence in case you are audited. If the ATO sent you a letter asking for evidence that the property was your main residence what would you give?

Yes it is possible.

yes you could change from TIC (owned 50.50) to JT generally without stamp duty. But why would you want to? This is an ownership structure change but will also need consent of your lender as they hold the title deeds.

How you structure ownership may also hold you back. A company is an usual way to own (did you set up this for land tax in NSW?) but you can limit guarantees by strategically choosing the director. This will free up the borrowing capacity for the non director. Sometimes one spouse will own but both will be on the loan. If this is not needed for servicing that loan then the non owner spouse should be immediately removed – both for asset protection and serviceability of future loans.

Pay more what?

Paying principal of a loan is not deductible.

Why would you want to make it negative? That would mean you are losing money. You would be spending $1 to save 45cents. Doesn’t make sense.

The ebook is in the signature
“Trusts and Tax for Property Investors” download free at http://www.propertytaxsolutions.com.au/

The loan agreement is that between the trustee as borrower and yourself as lender?

It is critical that you establish whether the contribution to the trust is a loan or a gift. This is from a tax perspective as well as from an asset protection perspective.

If you borrowed the money to lend to the trust, who is claiming the interest on this loan? If it is you, then you shouldn’t be. If it is the trust then there seems to be no loan agreement in writing so if audited the ATO may deny the interest. If you gifted the money to the trust and you borrowed it then the interest won’t be deductible to either you or the trust.

If you were to become bankrupt at some future date then the loan is your asset and will be recovered and handed over to creditors. If it was a gift it may be protected if made 4 years before bankruptcy (other things to consider too). But since there is no documentation it will be argued that it is a loan.

Imagine what could happen if you died. The executor would have to sue the trustee to get the money back – it would be their duty to do so and they would be personally exposed if they didn’t. But there is no paperwork to determine which it is. This could lead to a court hearing costing the estate tens of thousands. Your children could miss out on the money lent as well as the legal fees. This happened to one of my clients.

Good that the trustee is keeping assets segregated though.

inusure wrote:

( the one that is building/soon to be finished), and they told me that i can only get positive cash flow by purchasing this type of property.

Which they coincidentally happen to be selling.

Beware.

PPOR – you sound like you could be messing things up with the trust assets and loans. You need to keep your personal finances and trust finances separate of the trustee could be in breach of trust. You shouldn’t be paying into a trust loan without thinking carefully about it and properly documenting whether it is a loan or a gift.

Trust loans should be in the name of the trustee.

ME Bank recently increasedd their 3 year fixed rates too Could this be the start of the upwards trend?