dividing property 100% me 0% my wife – good idea ?

I guess you could say she gets a reasonable benefit because if you guys split she can still take you for her share through the courts. That’s reasonalbe isn’t it? SOunds terrible I know, but I’m sure she would benefit. We have a negative geared house in my husbands name only and a positive geared house in my name only but all loans are in both names. We’ve never had to sign anything like that though.

As to whether it should be in just your name or both names, that depends how long it will be negative geared for and when you plan on selling, retiring etc. If it’s only negatively geared for a year or two and then it with rental increases etc it turns around to be +ve geared then it might not be worth while as you’d be paying the higher rate tax on the porpety for the next few years until you retire or sell the porperty in 10 years time.

Is it too late to see your accountant and get them to do a forecast over 10 years so you can see when it might change from -ve geared. It’s only a forecast as assumptions will need to be made regarding inflation, possible rent increases, interest rate changes etc, but it’s a starting point.

Also what I do on all contracts when buying is state that the buyer is “MY NAME and/or nominee”, then in the conditions on the back of the offer I put ” The nominee is MY HUSBANDS NAME”. This then gives me time before settlement to work out the figures over the next 10 years to ascertain whose name it would be best in.

As my wife earns all the money, we have put her at 99.9% ownership on title and me .1% for the negative geared properties. The +ve will be 99.9%in my name so she does not have to pay extra tax on it.

‘Eat rich food, barbeque a yuppie’

Agree with Redwing.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Do a search on this site under trusts and also http://www.somersoft.com.au also has good information as well.

‘Trust Magic’ is an excellent resource ($99). I have recently purchased it and suits someone just in the process of commencing their trust knowledge. Can only be bought directly through Gatherum Goss & Associates (their accountants in Melbourne).

James

I agree with Terry….To a point.. Alarm bells a ringing here….
I think you have just signed up to give the bank the right to pull both properties from under your castle if you default on either contract….. Most common trick in the bankers book of dastardly deeds I am afraid!!!
Hope you have not gone through the whole process yet or if you have … it may cost you some coinage to get out from under this arrangement by refinancing out and holding each property under it’s own security.
Anyway my best suggestion is to seek some legal and tax advice from the appropriate proffessionals to get a better picture on your situation and be more informed as to your options and stratagy planning.

Personally I do not like LOC’s as they will take your house if you default … where as an unsecured credit card will just bring the sherrif a knockin’

Did you know that the banks invented the LOC as they researched the market to find a most profitable cash cow for them?… how??? the statistics showed that over 85% of clients would not pay down their loans at all and would blow the equity on consumables ::: Holidays, Boats , Cars… you know the drill!! []
Then the banks also knew that most LOC clients would then move the loan over to a P & I loan … giving the bank more funds in fees and ongoing business….. So I guess the moral of the story is … if you are extremely diligent and disciplined go for the LOC… also remember the LOC is normally at around 0.5% higher than the basic P & I with the ability to draw down on the equity anyway…. but not so easily… still this type of arrangement will not be a show stopper when hunting down deals as usually you can get the funds released within 10 working days.
NB: These are my express opinions and are not to be construed as advice in any way …. always use your own due diligence and research before deciding.
Good luck!
Cheers
Kiwi
[]

Hi Andrew,

As I understand there are many advantages in buying IP under Trust but there are also a few disadvantages like:

– can’t claim loss against your taxable income.
– 0 thredhold on land UV (unimproved value) for land tax in all states except ACT & NT.

These can be few thousand of dollars out of your pocket in the 1st few years. Pls check with your accountant and do your sum before making decision.

Can anyone correct if my understanding is wrong.

Regards

Huey