Land tax is vic is different to NSW. Trusts do get a threshold there, unlike NSW, but it is very small. But the rates of land tax are higher for trusts than individuals unlike NSW.

Speak to your tax advisor about related party loans. Could you borrow from a parent, say 20% and a bank 80%. Properly done you could borrow 100% or 104% and have more interest deductible when you move out.

Buyers agents fees are a capital expense (relates to the acquisition of a capital asset) so the fee is not deductible upfront but can be used to reduce CGT when the property is sold.

Lenders treat guarantees the same as borrowings. You are liable for the debt if the borrower cannot pay.

I am concerned because you are asking for tax advice to a bank and even more worrying is that they gave that advice.

You will have to instruct the bank. but it won’t be based on land alone but building costs as well.

3. Correctly apportion the loan according to the land split and the build – based on size and cost. You cannot articifically allocate more interest to the investment loan.

Check out the sales of goods act (NSW) – if the parties in NSW

If the buyer did not pay the buyersagent that means he eiter worked for free or he was a sellersagent/commission based sales person. Off the plan commissions generally start at around 4% and go up to around 10%.

Sam, if they moved in straight away the property could be CGT exempt, and they could use the 6 year rule to continue with the exemtpion once moved out.

Wilko – that is a good point. I have seen people in the past who had to move out of their house on the day of settlement, but the tenants of the house they were purchasing had failed to find a new place to live and had refused to move out.