Yes I agree. But I suggest you get the deed reviewed by an independent lawyer before finalizing. Also make sure you are contracting with an incorporated legal practice so you are covered by the lawyers professional indemnity insurance. If you are supplied by a company that isn’t a law firm you won’t be covered.

I have reviewed a few of these trusts, and associated ‘asset protection’ strategies.

my advice is for you to seek specific legal advice when setting up a trust – from a solicitor with a practicing certificate.

Westpac do it also

take the profits and apply for a new loan is the best way.

If you need to keep the loan open see if the lender will allow it firstly. Your only choice would be a term deposit at the prevailing interest rate. The only way to mitigate this is to keep the period between sale settlement and purchase settlement to a minimum.

That option is available, but the interest could not be deductible because it relates to a use which is non-income producing.

I am a trust lawyer – what is straight forward about trusts?

Here is one question to test you – what happens with the assets in a trust when you die?

Best to seek legal advice.

I don’t know as I am not a property lawyer, but would think this would depend on the title and any rights such as easements..

Yes initial repairs are not deductible. But you might be able to ‘depreciate’ them.

Hi VFA1

I am not taking on new law clients atm as getting too many.

You can read the legislation at s 55 of the Duties Act NSW and surrounding sections:

http://classic.austlii.edu.au/au/legis/nsw/consol_act/da199793/s55.html

VFA1 wrote:

Hi I am a joint tenant in a PPOR with my parents. About 5 years ago I transferred 33.33% of the title into my name in order to build a new house. I paid the required stamp duty at the time. Since then I have married and my wife and I have 3 other investment properties. Getting finance is such a hassle because in order to borrow funds, my parents need to be joint borrowers when I wish to draw equity out of our house (we all live in the house together BTW). I now want to transfer the remaining 66.66% into my name but obviously the property’s value has almost doubled since rebuilding from the previous old home but is there a way I can reduce or eliminate the stamp duty? There is a small amount of equity used but does it make a difference to the situation if there is a mortgage over the property or if it is owned 100% outright which I hope to be holding the title certificate in my hand early next year? Thanks

The only way to avoid duty is to argue that the parents hold their share of the property on trust for you. It would be a resulting trust that arises because of the circumstances. We have helped a couple of people transfer title without duty – or nominal duty in situations like this in NSW.

If having the property mortgaged won’t necessarily affect the duty aspects, but practically the mortgage will need to be discharged when title changes hands – which would mean a new loan application if it won’t be paid out.

Best to seek legal advice.