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I have a “personal” LOC ($30k) account. The idea behind the personal LOC is to have a buffer source of funds for emergency personal expenses. My salary and also rental income from some of my IPs is paid into this personal LOC (those IPs in my own name, before I discovered trusts). Because of the...

I have a query on the practice of setting up new trusts to legally reduce land tax liabilities. A search of the forum indicates this is a method used by several property investors. I have just got off the phone with a prominent trusts specialist located in Sydney. He advised me that in NSW a...

A long plea for help (maybe from Michael Yardney and/or DaleGG?) I purchased a block with an old rundown house in December 2001. Purpose of acquisition was to demolish and redevelop (build 5 townhouses). The old house was rented for a few weeks in the 12 month period between purchase and...

I have a number of administration queries relating to trusts. I have created a hybrid trust for property investment. The settlor was an accountant. Settlement sum was $100.00. The accountant has advised me that I MUST open a dedicated bank account to hold this settlement sum for the duration...

I have an opportunity to buy a development block from an investor who has not yet settled. He has signed a contract and is due to settle end of November. He is looking at on-selling for a $30,000-$40,000 profit. It is still a good deal if I pay the extra amount. My question relates to stamp...

Hello all, I have set up a discretionary trust, with my wife and I as trustees, and have just settled on first IP. A loan (80% LVR) in both our names (as trustees for the trust) is secured against the IP. The balance of 20% came out of my investment LOC account (this LOC is in my name only)...

From: Patrick Bruadair Dale/Rolf, I plan to set up a discretionary trust with my wife and I as trustees. Plan is to buy and develop a triplex site in the name of the trust, and sell two/retain one for rental. The intent is that my wife, who is a non-income earner, will be the main beneficiary...

From: Patrick Bruadair Hello all, I?ve prepaid interest on my IP#1 loan for the year to June 2003 (and so saved some tax for year to June 2002). I have plans approved to develop 3 units on the block of IP#1. To allow development to proceed, I intend to refinance the loan on my PPOR. My PPOR...

From: Patrick Bruadair A question on loan interest tax deductions. I understand that interest on loans for income producing assets is deductible e.g. IP purchase, share purchase. What about the various expenses associated with these income producing assets? If an investor uses a redraw or...

From: Patrick Bruadair I bought an old house on a block of land and have had plans prepared for a three unit development. Once completed, I will be retaining all three units for rental i.e. income producing purposes. I haven't rented out the old house while plans for the development were being...

From: Patrick Bruadair A follow on query to the post below on carpets for IPs. I personally like the idea of polished floorboard, although I have reservations about potential damage (moving furniture, cigarette burns etc.), and resultant maintenance costs. Which polished floorboard...

From: Patrick Bruadair Hello all, I am looking at getting involved in developing a 5 unit block (5 x d/s townhouses). GST during the construction period would cost about $85,000.00. GST payable on sales of the 5 townhouses will be about $100,000.00. I understand I can claim back GST during...

From: Patrick Bruadair Does anyone know how much banks (or other financial institutions) will lend for small developments, as opposed to retail IP purchases. I have come across a pretty good 5-6 unit site with an old house, ripe for demolition. Price around $250,000 + purchase costs. Costs...

From: Patrick Bruadair I have a question on Lenders Mortgage Insurance. I have an outstanding loan balance of $235,000 on my home (value $490,000) and am planning on getting a loan of $315,000 for an IP+costs (IP valuation $300,000)i.e. total loan = $550,000, total valuation = $790,000, LVR is...

From: Patrick Bruadair I've been on the lookout for a suitable four unit development block (1012sqm block, 20m x 50m). I plan to build 4 double storey townhouses with strata titles(idea is to sell two, and hold two for rental). I'm focusing my search on reasonably good capital growth suburbs...

From: Patrick Bruadair I'm exploring alternative options in the property investment world. I have a query on CGT payable for a develop four/sell two/hold two strategy. For the sake of illustration, assume details as follows: Buy block of land. Cost = $200,000 Build 4 townhouses. Cost =...