Of course you have to pay capital gains, you have made a capital gain!! I am not sure of the ins and outs of the GST issue, but I believe that you always have to pay GST when creating new titles.Did you purchase the block in your own name or in a trust? And are you going to make any profit after paying capital gains tax and GST? I would be…[Read more]

Cheers guys, your suggestions are appreciated. I was not considering moving, but it is always good to get another opinion.Luke.

You could look at purchasing them in unit trusts as you will then be able to transfer the units into a SMSF to enjoy the tax benefits. No real need to pay down the loans as long as the rent is covering the interest and you have enough surplus to live off IMO. Over time, the value of the loan with respect to the rental income should decrease, and…[Read more]

Total borrowing is $335k and value of property is $380k.Cheers,Luke

Sorry Michae, 7.11% is for the loan. The LOC is at 7.41%.Cheers,Luke

Runway wrote:
Hi Richard,Basically, I'm after an IO loan that has an offset account and which allows me to refinance my current PPOR so that I can access the equity (using a maximum 90% LVR). Of course, it also has to have the lowest rate available and minimum ongoing fees.

Runaway- trying to get the discussion back on track!! I have a loan…[Read more]

I have looked at DHA investments, however in my view they offered very low yields and not great prospects for capital gains (although my crystal ball may not have been working well at that time). They appear to be very 'safe' investments and so perfect for people who are risk adverse. However, due to their nature, there seemed to be very limited…[Read more]

You will pay stamp duty on the sale price or market value, whichever is higher. This rule is in place to stop people transferring property for $1 for tax evasion reasons.To cut a long story short, if you sell her your share for $1, then you will pay stamp duty on the market value.Cheers,Luke

Propertybee, without being rude it is time that you talked to a solicitor. You probably should have done this before signing anything. Posting on these forums will not solve your problem, I think you need to go and pay for quality advice in order to get this mess sorted out.Cheers,Luke

Lamp,You sound very confused. I suggest you call Jamie to help you wort it out.Cheers,Luke

It sounds like they want to cross your loans which is not ideal. A better option for most people is to use the LOC as suggested earlier.Cheers,Luke

Terry has a good point. Gifting Money to a DT can ruin any asset protection. You should pay for advice on this one.You may be able to set it up as a loan (say a 10 or 20 year loan) with the interest capitalised and then repaid in full at the end of the loan term. This will save you from having to pay annual interest to yourself. If the property…[Read more]

Kent Cliffe wrote:
Excuse the pun but similar to sub prime loans, these properties have been intended for sub prime tenants. NOW, I’m going to get lots of abuse for that statement. But similar to sub prime loans not all of the loans went BAD. A small proportion of them, and this dragged the entire assets security down with it.

I disagree. S…[Read more]

Is the trust a unit trust or discretionary trust?Cheers,Luke

lamp1111 wrote:
I just got my current bank HSBC approved to lend me 25% of the proposed value of the potential IP today. I am thinking that the 5% (in case) may be used for renovation and other settlement costs. Westpac is happy to lend me the 80% as well J

5% for purchasing costs is ok, but you will not have much money left over if you want to…[Read more]

Autralia is on its best terms of trade of all time at the moment- our economy is booming and is fueled by the hunger for our resources from China. I think Iron Ore is a boom industry- there are billions of dollars worth of projects going ahead in the north west of WA which will only add to wage and inflation pressure Autralia wide- good news for…[Read more]

Rental guarantees should be avoided. If it is a good investment, you wont need a rental guarantee to achieve a good rent. If you are getting a rental guarantee, then the developer is taking on risk and so he will increase the price of the apartment to cover the cost of the risk of the rental guarantee. Nothing comes for free.Luke

Jamie or another broker would be able to offer some good advice on this one.I think you are better off paying the money into your loan in this case and then redrawing via a LOC or a split on your loan. This will maximise the tax deductability of the new borrowings. Of course you dont invest for tax reasons, but if you are going to invest then you…[Read more]

Hmmmm, I have heard stories like this before. It is very important to do your due diligance before purchasing properties off the plan- developers such as these people have given the industry a bad reputation. I suppose you can just count this as a leson learned (an expensive one at that)!I think the most important thing in property investing is…[Read more]

Re Trusts- A discretionary trust in your situation could be a good way forward. You have a high salary and your future wife is studying and likely to not be earning as much as you so being able to distribute future income to the lower earner is a massive advantage.Another way forward is using a unit trust. You will still be able to negatively gear…[Read more]