http://www.ato.gov.au/individuals/content.asp?doc=/content/66031.htm&page=8&H8

A great question. I had always assumed that these costs were all deductible.

Here is an extract from the site;

Acquisition and disposal costs

You cannot claim a deduction for the costs of acquiring or disposing of…[Read more]

……….so I thought we could turn this into a IP and then rent ourselves. We could then use the equity to borrow to invest for positive cashflow and then sell our current now rented property at a latter date before the 6 year no capital gains tax rule applies (because we have already lived in it).…[Read more]

I worked these rough figures:

You have 170K equity currently. 300K-130k=170K

Of this, the bank will happily lend you 80% of 170K = 136K.

Just on a technical note, shouldn’t the 80% be calculated on the property value?
I.e. 80% of $300K leaves $240K. So the bank will lend up to $240 with no LMI. You owe $130K…[Read more]

You’ve mentioned a few times to switch to an interest only loan. Now, given that the Equity Access loan we have currently is already interest only, are you suggesting a different type of interest only loan? I’m guessing that perhaps you mean a loan that is still interest only but does not offer the flexibility of a transctional…[Read more]

The Equity Access loan refinanced our initial P&I loan (with another lender) based on a revised PPoR valuation. We have since taken this loan up to it’s limit by using the available funds for renovations plus other personal expenses including bills etc.

I’m still not sure where this leaves us in terms of claiming interest once…[Read more]

Your LOC can be used to used to fund several properties subject to the avaialble equity you have in the LOC.

Would this not make claiming interest on the various IP’s difficult if they are funded from one LOC? Although I guess it doesn’t matter as long as the LOC doesn’t fund anything personal or connected to your…[Read more]

Also, I’m pretty sure the ‘Equity Access’ loan we have at present is interest…[Read more]

Here is some more detail;
Existing loan on PPoR is interest only Westpac Equity Access loan with max $265K and sitting near that level. Once the PPoR becomes an IP, can I claim interest on the full balance from the time it becomes an IP regardless of how that balance was achieved up to that point. If not how can one determine…[Read more]

David Coffey

How, and under what circumstances can one organize access to a property before settlement? I got the seller to open up our current for an hour or so a couple of days before settlement so I could move some furniture in, but this is hardly what we’re talking about here is it!

What is an LMI company?

Cheers

David Coffey