[mxdMember@mxdJoin Date: 2009Post Count: 45]

May 14, 2011 - 10:27 pm

thanks, I thought the 2:1 was right but I thought with the new regs (no exit fees etc..) I could take the opportunity todo a 1:1 offer.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

May 14, 2011 - 7:42 am

Terryw wrote:

That would be coming at a premium?

If you just want a loan book there are many others out there.
What is the going rate?

They used to sell, a few years ago, for about the annual premium. ie if the annual trails were $100,000 you could get it for $100,000.

that’s interesting, where would I look for those ?

Some appear to be at the 1:1, others appear to be upto 3:1, I thought 1:1 sounded “right”, I think real estate rent rolls are about a 3:1 ?

thanks

[mxdMember@mxdJoin Date: 2009Post Count: 45]

May 14, 2011 - 7:17 am

Terryw wrote:

Why buy something you can get for free?

just for the loan book, the current trailing commissions.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

October 9, 2009 - 4:54 am

if you do that, you could possably be hit with a CGT when you sell it, probably better not to tell anyone about the income ?

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 28, 2009 - 5:30 am

it feels risky,

if you can pay 140K off in 12 months or so with the addition of 650 week (35K pa) then you would have you PPoR paid off in < than 2 years so I would probably not push my luck with the ATO.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 22, 2009 - 11:56 pm

Hi Coco

I guess you are earning an income, the rent you receive, it just might not cover the expenses, you could look at you finance and change it to a interenst only loan, then that might give you an positive cashflow, income etc..

Richard could assist you with the refinancing.

cheers
Matt

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 22, 2009 - 7:48 am

oh Richard now your've confused me (not that that's hard )

I thought,

DFT buys house
DFT borrow 80% for IP from Bank (IO)
LOC (IO) on PPoR
Me Lend $ to DFT (at my LOC interest rate)
DFT pays interest on Bank Loan
DFT pays Interest on Loan from Me
If DFT is negativly geared, that "loss" stays in DFT to offset future $$ (I'm not trying to take this interest expence)

I declare income from Loan I provided to DFT (interest payment received from DFT)
I declare interest expence from LOC (I incurred this expence as I leant money out an interest rate)

cheers
Matt

N.B as a side note, the current IP is going through the sale process(early part, have REA, Solicitor), so hopefully it goes through quickly and we get it on the market and sold. So we can buy some more in the DFT.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 22, 2009 - 1:58 am

thanks for the help again.

so if I was going to mark the loan as an interest free loan then it should probably just be a gift. (e.g just put $200 as a trust expense for birthday presents, I should just say the $200 came in as a gift, that way when the trust earns $200, there is no need to pay tax and the trust can then give me the money (no tax required as it's been "taxed") or keep it in the trust bank account)

When I buy a IP in the trust, I will borrow borrow 80% in the trust name, then use a personal LOC that I will draw down. I will lend (with interest rate) the trust the remaining 20% + Fees for IP purchase.
I will then claim the interest as an expence and the "repayment" as income, so that way it is all tax neutral  (personal tax) ?
The trust can then claim the total interest charges (bank and me) as an expense. I think

cheers
Matt

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 22, 2009 - 1:47 am

thanks for that.

cheers
Matt

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 15, 2009 - 10:45 pm

you need to do the work post income producing, then you can just claim the $ to get it to the level that it was.

The dishwasher, if it works you can fix when the tenant is there, the tiles could be tough to claim as an expense. If you speak to a financial advisor to ensure you get all the things done that can assist you (max loan, correct structure, fixture surveyor, 6ry CGT rule, etc..)

good luck,

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 10, 2009 - 9:44 pm

Qlds007 wrote:

George

2 out of 2 great opening contributions.

and the link doesn't work

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 11:49 pm

we don't live in different homes, we are not seperated. The link you refer to is (When your spouse or children live in a different home to you).

What do I need to do get something in writing from the Tax man ?

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 11:26 pm

the above is only true (according to the ATO) if the properties are in joint names.

I own nothing of my wifes unit and she owns nothing of my house.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 10:52 pm

Ok rang again,

here's the numbers if you would like to try,
132861
2
3
1
# (no TFN)

Spoke with Greg.

As I assumed the assets are in different names so they don't affect the other one. The important thing is my wifes property was not used as an income earning asset originally, it was her PPoR untill 5.5 yrs ago when we got hitched. All the examples they give are related to the assets being in both names.

cheers
Matt

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 10:02 pm

I will ring again, get a name etc..

I think the main point is each asset is in only one name so the CG Event will affect the owner of the asset. i.e if the unit was in her name and the house was in both our names, then if she claimed the PPoR on the unit we would get hit with CGT on the house.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 4:24 am

Hi Kenny,

thanks that's exaclty what I was meaning.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 2:37 am

I will

just thought of another option.

sell the unit to the family trust, we will have a stamp duty cost but it will give me the same outcome. No Mortgage on PPoR and income producing assets in trust.

mmm, might be easier to convice wife. I assume there is no arms length type stuff with family trusts ?

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 2:08 am

Hi Kenny,

I think if my wife had 2 properties in her name then she would be hit with CGT on one of them,

So what we are saying is
her PPoR is A (last 5,5 years she earns income)
She can sell and claim the 6 yr,

My place (not in her name) is my PPoR so I can sell with no CGT.

The ATO only seemed interested in whose name the assets were in and did they start as non income earning (i.e PPoR).
Then you may set that as you PPoR when you sell it. As both properties are in different names, it is only the property holder who gets hit with CG. e.g if we sold her place she would pay CGT, she could not pass it on to me or the kids to minimise the tax.

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 12:42 am

just had the call back from the ATO and my assumption was correct.

We culd both sell our properties now and not pay CGT on either.

As both properties are in different name and we both only hold 1 property it's all good.

Now to convince the wife.

1) Sell her place
2) pay off mortgage of PPoR (preference would be to have the redraw still available but no outstanding debt (0 interest))
3) buy 2 or 3 IP's (interest only loan) in our family trust (using us (unincumbered PPoR) as guarentee)

Now need to find a finance broker to get the ball rolling for LOC or some finance structure (fro family trust)

cheers
Matt

[mxdMember@mxdJoin Date: 2009Post Count: 45]

September 9, 2009 - 12:25 am

thanks, I saw those but got even more confused,

my wife and I both own 1 property each. And still live together in the property I own.

I assume.

If my wife sells her property, claims the 6yr rule, she wil not pay CGT.
If I sell my property, I claim it as PPoR and not pay CGT.

Is this true ?

I have rang the ATO will let you know what they say