Again I'm not an accountant, but the good ones seem to advise against claiming interest on capitalised interest.  I don't think capitalising it's bad – quite the contrary.  But to keep my nose clean and beyond reproach, I wouldn't claim it.  The ATO seeks and destroys schemes designed to avoid tax, so if that is the goal, forget about it; but as…[Read more]

My understanding is this has been thoroughly tested, and although I can't quote quote anything, the guideline is you can't claim interest on interest, only on the original cost.

Buyer beware. It's a very sad, unfortunate situation.  Let me share some sunshine.  I know a private day trader (took private investor money in 100k increments and played the markets) who lost everything – and was responsible and displayed incredible, independent integrity.He sold his assetts to pay back his investors, when he could have closed d…[Read more]

Hi Sdem,I reckon most members of this forum would agree there's no such thing as a dumb question as we're all at different stages of experience in different areas of property investing.  In fact, if there was such a thing, a dumb question is cheaper than a dumb mistake!  So keep 'em coming.Count up all the ongoing costs of an investment: loan i…[Read more]

You really to need to see a good mortgage broker and get personal advice.  This forum is great for tips and directions, but not complete solutions.  Ask all your friends if they've ever used anybody who'd they recommend you should use.  It seems like you know what you want to do, and you just want it to be a good idea; so do the research, and do…[Read more]

Hmmm. Is that a quote from the guidelines?  I'm certainly open to being wrong, and thankful for the heads up if so. It certainly is news to me though…

Mrman wrote:
I'm guessing this only applies if you completely pay off the first PPOR?I'm also not sure if it would be a better idea to get an Investment Property Loan and save the FHOG for later. If purchased as PPOR the interest is not tax deductible until property is converted to IP?CheersGeorge

Ah… no.    Anytime you borrow money or re…[Read more]

OK.  Make sure you get an estimate (can only be indicative in early stages) of the total costs including mortgage duty and lenders mortgage insurance so you can count the cost and weigh it up against the benefits.  Emotional benefits are still important.  Cash flow relief is very valid, and if you make sure you've got some flexibility, you can up…[Read more]

Hi GeorgeThere are three main ways to make use of extra funds to benefit your mortgage. Line of credit, redraw, and offsets.  The line of credit is a fully transactional mortgage whereby your loan is more similar to a credit card with extra zeroes in the credit limit, and anything you pay off the balance can be immediately accessed via any method…[Read more]

Hi Passnby,If I may add my two cents worth, I do mortgage and finance advice for a living. What other have contributed is pretty sensible for the most part.  The maths of refinancing when you have to pay Lenders Mortgage Insurance (anything over 80% of your home value) doesn't really justify the potential short term savings.  If there's a d…[Read more]