If you decide to go down the bridging finance path where you decide to buy first and sell the current property later, there are lenders out there who will allow no repayments for the bridging loan period (interest is capatalised onto the loan instead).

However if you don't sell your current property during the bridging loan period (max term is…[Read more]

Both you and the buyer will have to pay stamp duty. You are also liable for any CGT.

Cheers

Tom

Coota,

The reason for the requirements are due to first home buyers purchasing property that is already tenanted on a lease. It allows the lease to run out and then the buyer to move in, claim it as their PPOR fulfilling their FHOG requirements. So if someone had that lease until month 11, and you then lived in it as your PPOR, then it is…[Read more]

In terms of FHOG, to be eligible he must reside in the property sometime within the first 12 months and then for a 6 month continuous period.

Same with the first home owners stamp duty concession, except you must reside in the property for a continuous 12 months once you start living in it.

Cheers

Tom

Hi Chris,

Someone else can confirm, but I believe that if you borrow funds from a dedicated investment LOC to pay for investment expenses, then any interest associated with the expenses is also deductible.

Cheers

Tom

The former, Derek.

Though as Jamie has mentioned, if you have been pre-approved once and your situation hasn't changed, there really isn't a need to renew/extend though people do want it for their own peace of mind.

The big question is how reliable the pre-approval is in the first place. There is a thread on this forum in the last week or so…[Read more]

Kat, you need to be wary of where you "park" your cash while waiting to buy the IP, as it may have an effect on your deductibilty.

Cheers

Tom

Derek wrote:

While Dec 5 seems a long way off – in property terms, it isn't. My understanding of an end dated pre-approval such as the one you have is that a finance application should be submitted before expiry date. One of the resident brokers will clarify this.

If this is correct you may want to do some 'homework' to get a wriggle…[Read more]

delbs19 wrote:
Wow thanks Jamie, Tom and Richard for the advice, I didnt think I'd get four replies so quickly.

I think I'll stick with Breakfree. I was concerned because I only have one small mortgage and it seemed like I wasnt getting 'value for money' with this package. Though I've just read on ANZ's website that you can have up to five…[Read more]

That would require the government telling the truth, heaven forbid!

Cheers

Tom

Packages from lenders usually allow multiple loans under the one annual fee. So the added costs associated with taking out a new loan with a "cheaper" lender does not mean it will be better in the long run.

It's much the same as with Wayne Swan's broken record about "walking down the road to find a better deal" every time the banks don't pass on…[Read more]

Hi Paul,

Most people would suggest yours is a good problem to have. As Terry mentioned, investing in property to save tax should not be the sole reason you do it.

Not much you can do about the extra repayments you made in terms of claiming interest for the current property, but you may be able to use any gained equity in the future for a new…[Read more]

Two things. First stamp duty is calculated at market value, so even if you bought it at a discounted price, if it is valued at the $800K mark, you will need to pay stamp duty at that number.

Secondly LMI can theoretically be added to the loan, but it is a cost that won't be recouped in full if at all. Therefore it will eat into your…[Read more]

The difference between applying for an owner occupier loan and investment loan is that with an investment loan, you can take into account future rental, thereby allowing you in the lenders eyes to service the loan easier, and theoretically borrow more than what you would if it was owner occupier.

There is a question that lenders ask which is if…[Read more]

Hi rpkim,

Terry is correct. From the ATO website:
http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00205421.htm&page=8&H8

Once you do buy an IP, then travel to the property to collect rent, or for repairs and maintenance purposes is generally deductible.

Cheers

Tom

Incorrect Andrew.

In the situation you described, it is not time based. The cost base for CGT purposes would be market value at the time it became a rental property.

Cheers

Tom

Agree Derek. The last thing you would want is to put the guarantor into some sort of difficulty, so the earlier they are discharged, the better.

Hi Wally,

In relation to finance, if you need your partners salary for servicing a loan, then depending on how "poor" your partners credit history is, you might not be able to finance with a regular lender and might have to go down the specialist route.

Also with a high personal debt such as the $17,000 credit card, I would suggest at least a…[Read more]

Yep, owning is usually better than renting in my opinion, especially when you look at it from a long term point of view.

Normally as time progresses, your salary increases, but so does rent. Say in your case it increased by 5% per year, in 10 years time rent would be close to $2,000/month. So depending on your salary increases, the ratio of rent…[Read more]

That applies particularly to family, for some reason they think they have a right not to pay it back.

Cheers

Tom