Sorry, and who are you helping?????? I can answer that , that will be yourself…….http://www.birchcorp.com.au

Sorry, and who are you helping?????? I can answer that , that will be yourself…….http://www.birchcorp.com.au

Sorry, and who are you helping?????? I can answer that , that will be yourself…….http://www.birchcorp.com.au

1. No you cannot refinance the the original property to increase the available tax deuction (but you can be creative depending on your circumstances, name on the title etc). 2. Yes the property will be valued at $600k for CGT purposes, You have confirmed yet again the reason why you should almost never pay your home loan down and why you should al…[Read more]

Banker, sits on the fence.Try $400k for a typical loan, and you will find that there is a large difference, in fact it is enough to purchase another property.Hey, but if your not interested in making money, you can sit there like average Australia and pay off you home until you are 50-60 years of age and then you will invest. In the meantime I…[Read more]

1.  Your right, I have never done this for a client with $30M, but $450k is the norm… I am being realistic.2.  If i did not look at the numbers I would be doing all my clients a poor service – litigation.3.  Still not over this one……..Anyway, happy to have this conversation again with another topic……. this is what is good about this si…[Read more]

1. I can borrow the same number of dollars, you read too much on how you cannot get cash out etc. The $$$ are the same. As you mentioned I do these often. 2. Peace of mind (sorry, I look at the numbers first – intrinsic feelings cannot buy a house- research the reasons why you should not pay down debt v feeling good about yourself).3. Sorry, you…[Read more]

You have one valid response, of which none are good reasons, so I will maintain "Almost never" 1. You can only borrow the same amount of dollars regardless. i.e. loan capacity is the same. e.g. offset =$50K+ borrowings=$250k    v         offset = nil + borrowings $300k                   Both add up to $300k to me? 2. What are the estate planning a…[Read more]

Ask for a private ruling if you are concerned. I was audited last year, if you are keeping things real, you will have no problems……Yes, the cost base will be taken from the date available for rent. Subtract the cost base from the value of the property when you took it off the market,  and you will pay CGT on 50% of this figure (less anything…[Read more]

Please talk, I am very interested.http://www.birchcorp.com.au

Ryan,Is the director of the corporate trustee of the trust in question not liable for negligence? You may like to confirm this one, with written advice that can be substantiated? Particularly as most people state it as the main reason for establishing a trust. Further, trusts cannot distribute losses.I also like to think that I am not being…[Read more]

Paul,What is one good reason for paying this down as opposed to utilising an offset account?I have the answer – Don't respond.If you have no discipline, and you are going to spend this money on depreciating assets.So almost, NEVER………http://www.birchcorp.com.au

Tim,As stated above, only the interest costs will reduce your taxable income…..  i.e. the principal repayment is not a cost of earning your gross income. Further, you should never pay this debt down. Think about future tax deductions if you require the money for a non tax deductible asset. I see the words "offset account" splashed all over this…[Read more]

Makes complete sense to me, As you have an assessable income to declare, you may offset this with your costs (interest is an allowable deduction).http://www.birchcorp.com.au

I like the acronym K.I.S.S.This is very simple, as "I-dream-houses" has stated set up a testamentary trust ( a lawyer will do this). It will simply place your assets into a trust on your passing. The beneficiaries are your family. It lacks complexity and low cost ( approximately $100 on top of your will -Total about $300). I sometimes have trou…[Read more]

This is all very simple to me, you have a property valued at $370K (estimated = expected return $37K p.a.-capital growth) and you are concerned about $30pw = $21pw after tax. The property game can sometimes be complicated. In this event it all points to one thing – DROP THE RENT.  Sorry, I am telling you what others are too soft to say…………[Read more]

I'm interested,http://www.birchcorp.com.au

The problem with pre-paying interest is the lack of deduction in the next financial year, unless you intend to keep pre – paying interest. (Ask the bank you are with if they have a premium for this privilege- they often do). Don't get me wrong, it can be effective. DO THE NUMBERS FIRST, DON'T ACCEPT FASHIONABLE STRUCTURES WITHOUT DUE DILIGENCE.…[Read more]

I am impressed that you are thinking like an investor on your first property. I like that you do not want to use your own money.Yes, you can borrow 100% + costs when you are creative. There are always ways…http://www.birchcorp.com.au

Kylee,Lets clear this up, You do NOT have to move back into your home for the three months. You will maintain the owner occupied status for six years (you may only have one PPOR exempt). The 6 year exemption rule will provide you with the opportunity to get a good feel for investing and creating wealth – it will give you time to absorb the q…[Read more]