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Hi Clee, I agree that there are not many advantages to having a property in a HDT now, except perhaps for asset protection. Chris Batten seems to favour a HDT, unit trust structure, whereby the unit trust would own the property, and the HDT hold the units. The advantage of this structure...

No probs. Just trying to get my head around all this. I found this information on Chris Batten's web site. (http://www.investorone.com.au/index.aspx?p=specialreport click on the "special report - Download" link, and go to the last page you will see the structure I am referring to.) Is this old...

I have done a bit more research and have found that a SMSF can buy units into a unit trust if the assets in the unit trust are unencumbered. It appears then, that for this to work well it would be better to have a unit trust established for each IP. This way, over a period of time the SMSF...

Hi Kylie, Try finding a draftperson/architect that has had some building experience or was involved in the building industry at some stage. You can spend a little fortune trying to fix problems architects didn't foresee at the planning stage. Keep things simple. You will generally have a...

I have spent the last few hours getting up to speed again on HDTs and from what I have read there have been a few changes in the last 2 years. I guess they are not really changes if the trust deed was done right in the first place. As far as I am concerned I have no problems with the HDT...

Hello, Been a long time since I last posted here. Been busy working trying to get my business off the ground. I have spent the last few hours catching up with all the latest info on HDTs and SMSFs etc... and need to clarify a few things. One is... is it possible for a SMSF that has $50K...

I had to write this ... this is the best laugh I have had in a while! Thanks everyone ... especially to you Ali for starting this thread. :D Cheers, Nom

From what you explained the HDT does not own the property. The unit trust does. The HDT only has units. So if the HDT bought the 300,000 units at $1 each (say) it can then sell these units to another HDT for the same amount and not trigger CGT because no gain was realised on the sale of...

Shhhhhh! Don't tell anyone... ;) Nom

Hi tcocaro, When I first saw the title I thought I would write a short note ... after reading your post it might be a bit longer. The title said "Property as a business not investement". I initially was going to say you must be very careful what you do here (however after reading your...

How far is the house from the bikies headquarters? ;) Nom

If you use the equity from your PPOR to buy IPs then YES, you can claim the interest. The important rule is "What is the money being used for?" If it is for investment purposes then you can claim the interest, no matter where the money comes from. If it is for personal use you can not. Yes...

There was a thread not so long ago about someone asking how you can pay $0 stamp duty when buying aproperty. This thread jolted my memory. I remember reading that you can avoid stamp duty if you buy the units (from a unit trust) that owns the property. At the time I remember looking into the...

I would like to know the answer to this one too. :rolleyes: I was told: If the person you are making the distribution to resides in a country that has a double tax agreement with Australia, they will only pay tax in the country they reside in, and no tax is payable in Australia. A bit of...

Dale, Much appreciated. That was the last piece of the puzzle . I didn't realise that if we had any intentions of renting the property (even if we were thinking of selling within 5 years) we could not claim the GST. It all makes good sense now. Thanks, Nom P.S: We have no...

Hi Dale, Thanks for the reply. I have no problems with that. The reason why I would like to claim as much GST as I can is that that I can use the money for other developments, which then creates new jobs and boosts the economy. When time comes to sell or if I keep the property for more...

I now have the time to write back and hopefully get to the end of this... Before I start I need to make clear that I am looking at this from the point of view of a "developer-investor" NOT a builder. (which I think is where Kristine is coming from.) I have put some thoughts onto a...

Too right. "Intention at the time" ... my intentions change with time too. That is why I think we are better off claiming as much GST as we can, while we can, and reuse the money to stimulate the economy. I thought things changed when a property is no longer deemed to be a "new property"...

Kristine, Dale, Thanks for you input. I have been thinking about this a bit more and this is what I have come up with. From a cash flow perspective, if you are thinking of keeping a property for more than 2 years, it is better NOT to use the margin scheme and claim all the GST you...

Dale, Using the same example could you show us what the maths would look like if the units where leased for more than 5 years. My take is that if setunge decided from the beginning to keep the units for more than 5 yrs he would not be able to claim the $39,090 in building costs but then...