[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

March 10, 2013 - 12:50 am

Hi, I have 123K in my super account. I wish to buy a property in india via my SMSF. I wont need any home loans. Do you see any challenges with this.

Regards

Amit

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

October 10, 2012 - 4:03 am

Weekdays busy – Had a quick chat with one of the respondents on this forum and they will get back to me latter this week.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

October 5, 2012 - 6:03 am

Ziv, I would be keen know the outcome. I am going to be ringing some accountants myself next week to try and find out who has done this previously. I was told

A) If a person does an individual SMSF then property overseas is in the persons name

Don’t know about situation where 2 or 3 people get together to form the SMSF.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

October 4, 2012 - 1:45 am

Guys, With no loan requirements – I think this is straightforward.

A) Has anyone set-up an SMSF to buy property overseas – anywhere (say the USA).

Would you recommend any one who can help in this activity (professionally).

Regards

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

October 1, 2012 - 6:59 am

All the three of us are Australian citizens and have a Indian OCI (overseas citizen of India -Like dual citizenship).

We are Indian by background but have now settled in Australia.

We have family (parents) in the city in which are planning to buy the property.

No Loan required – Simply want to buy the property off the plan in India. 

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

October 1, 2012 - 5:18 am

Terry, Can you help with setting up a SMSF to buy property overseas. If so, I am happy to give you a call and seek professional advice on the matter.

Is this approach (using SMSF to buy property overseas) used by people and approved by TAX office.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

July 5, 2010 - 10:17 pm

Please advice if anyone else has had this problem with st george bank this year.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

July 5, 2010 - 1:34 pm

Thanks banker – really appreciate your comments and they will be very useful tommrow.
1 à I will lodge a complaint tomorrow morning with the bank and get a complaint number.

2 à I will lodge a complaint with the banking ombudsman

3à they definitely had a system error ( I have that in email) – also in phone conversations – they kept on repeating that it would be taken on next night for 3-4 days – for these conversations they kept on telling that these conversations are recorded but they cannot give me anything in writing.  The email from the teller (person who lodged my application) was separate.

4à I think the bank will argue that this is a system error.  

 I understand your point about trying to pay earlier but I was bound due to the past year -interest became due in june 29th each year.

I do not understand your comment about — “You might get two lots of interest in this fin year / one paid July 10 and one paid June 11.” Is this about me paying two lots of interest next financial year is it?

This is really bad.

Regards

Ankit

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

July 5, 2010 - 12:57 pm

I am sure I would not be the only person facing this problem – This is definitely a wider issue affecting many customers -please contact me on [email protected] if you or anyone known to you has faced this problem.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

February 6, 2010 - 1:38 pm

This just seems to be really bad time to change lending criteria.

I, for example, was thinking about using funds of upto 80% (increase borrowings from my current level of 70%) of my property valuations to fund other investments . Some options being considered include…

A)     Invest in mutual fund

      A property purchase overseas (via my family).  Explaining all of this to the bank and getting property papers etc seems difficult.  

I am taking loan against my current property – Really to me it seems to be a case of it should be none of your (banks) business what I do with that money as long as I am meeting repayments.

 

What is a sensible reason to give to a bank manager which he should not be able to refuse?

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

February 5, 2010 - 10:46 pm

I did an internet search – if my move banks i might have to pay another LMI.

I did some thinking overnight – My main financial goals should be satisfied if I am able to go to 80% of the combined value of my two houses – If my valuations were a little better then I can go to another bank – borrow 80% and not be liable for paying another LMI.

Please let me know if you have any recommended mortgage refinanciers. Please email me on [email protected]

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

February 5, 2010 - 6:03 am

So what are my real options

1.       If I move bank (my lender), do I need to pay Lenders Mortgage insurance (LMI) again or does it move with the loan. This is one single thing that will prevent me moving.

2.       The house that i live in has No break fees – I have been with the bank for more that three years

3.       Investment property – I pay interest in advance each year – so am fixed till 30june. This can also be a problem.  I will again need to pay interest in advance this year as well. A little bit of a hit is fine.

Bottom line is that I need the funds (up to 80% and ideally upto 88% of the combined value) and will move if the bank does not let me borrow more. I am happy with their product (5.98% on a Line of credit – big 4 bank) but will move.

I am assuming if I move the other bank will value by houses again (off course). If anyone on this forum think they can refinance me in a cost effective manner please let me know your email address.

The other thing, as i am happy with the existing product, is to talk nicely to the currnet bank and see if they can do anything- all i want to do is borrow against my existing equity – what is the correct reason for borrowing which the banks will not be able to refuse – MBA , want to buy another property , want to take this money and go to another bank for the next property etc.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

February 23, 2009 - 9:32 am

Family situation is different but the tax situation would be the same. I am still in Australia – sticking to my safe job here in the current economic climate. Waiting for things (financial crisis) to clam down a bit – plan still remains the same. Calculations have changed now with interest rate at 5%. If I fix now for 3 years – it would be three years of cost neutral investment property. Would be interested in finding out what you find because I still am planning to move J

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

August 31, 2008 - 1:50 am

Elka, This requires proper investigation and may require rethinking the entire strategy. I will take a week to respond to this one fully (weekdays is busy). Initial thoughts….

1. It is likely that my going overseas may trigger a CG event.
2. On the IP I was always going to pay capital gains tax. The real concern is the residential property.
3. I would be extremely reluctant to sell the house – Only if it becomes cost neutral over a couple of years would I sell my house.
4. My calculation prior to this post was

A loss of 25000 per year which would progressively decrease. Appreciation in property value per year  @5%= ( 350000@5%(PPOR) +350000@5%@0.85(IP)) = 32375.  If it increased more than 5 % then it would be where i would win. However now if I have to pay CGT on my PPOR then the whole exercise may become cost neutral.

Question : I am an Australian citizen — Say I go overseas and come back for one month after 5 years. Do I become a resident again (and use my current residence with tenants moved out as PPOR) or is it only after I live again in Australia for 6 months in a taxation year do I become a Australian resident for tax purposes.
Who does house valuations to determine house value for CG purposes – Can it be a real estate agent or a bank? I would only pay CGT when I sell the house right?

I would be very reluctant to sell my house. I need to understand the system and in a lawful,correct (and right by the tax office) manner understand how to maximize my returns.

Thanks for your post Elka – appreciate them.

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

August 31, 2008 - 12:41 am

Elka, Very informative posts.  I definitely need to get a new tax agent – initially looking through the link — It seems to show it is not too good for me. I will respond after going through it in detail. Thanks a lot

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

August 30, 2008 - 4:40 am

h

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

August 21, 2008 - 8:36 am

I am returning to India – family reasons. But the whole thing rests on me offsetting my rental income from residential property against income from IP.  Current thinking is  — I pay income tax on what I earn in Australia in Australia. In India I just pay income tax on what I earn in India  from my job their. So my Australian tax return will be income =rent =35360 . Loss will be (1 investment property expenses ) = 29500. Therefore total income  = (35500 – 29500) = 6000 (which @30% tax rate since I will be a non resident) =1800 tax I have to pay in Australia.  Loss of 25000 dollars is for maintaining both properties (IP and investment). 

Also  I had paid off my residential property – I have recently extracted the entire amount to buy property overseas. So it is like paying interest to borrow. Now for the wishful thinking part. …Houses are in Watsonia and Greensborough in Melbourne – council is building a big project @300million their. Both the houses are currently valued at 360 each.  1) I would expect them to be 550-600K in 6 years. 2) if the interest rates reduce a bit and rents go up the 25000 dollar loss will reduce to more like 10-15000 dollar loss. I briefly had a chat with my tax agent but did not get much insight ( he is new as well).. I am very close to making the decision on this…Here is the advice I am after 1)      Does any one see any show stoppers in the strategy2)      What approvals do I need from the tax department3)      Dual tax etc which was mentioed in the earlier post .. seems funny to me which I don’t understand. 
Regards
Ankit     

[ankitjainParticipant@ankitjainJoin Date: 2006Post Count: 27]

January 25, 2006 - 1:35 am

Property in India is doubling every 3 years currently. Being an Australian citizen of Indian origin I find it easy to relate to that market and I know people who can alteast go and visit the property if the need be. It is all a case of how much does it increase!!!. I went to India over Christmas. I got a loan pre-approval from ICICI bank (India’s largest private bank) on my recent trip.
I rang up Citibank Australia today and they said that I need to talk to the local branch i.e. Citibank branch in India.

So based on these two things —

1. Do negative gearing rules apply in India (or any overseas country e.g. USA etc)?
2. I would be more comfortable going via a global bank e.g. Citibank or HSBC – don’t know how much of a presence ANZ has in India.

I will find a bank – that is not a problem — By posting on this forum all I am trying to find out is – does this model work? Can I buy property in any overseas country (in my case it would be India) and claim negative gearing in Australia? How about paying taxes at two places – tax in India on rent received in India? E.g. If you had a USA property would you do a tax return in USA as well?

Please advice?
Regards