Keep in mind you will still be up for stamp duty, and maybe CGT.

Cheers

Tom

Currently have a 2008 HSV GTS that is being used as a tax write off.

That was upgraded a few years back from a VS Commodore (owned for 10 years), and before that a yellow JD Holden Camira.

Yep, an expense is an expense, and it doesn't matter with what funds it's paid with. It's when you try to claim any interest that might be associated with the expense that will need scrutinising.

Cheers

Tom

Depends on how far north actually is. Whittlesea is really out of the way, but I can see some prospect with an area such as Epping.

Cheers

Tom

I don't think you need to move back in before reselling it. As long as it is sold before the 6 year period is up, it will be CGT exempt.

No one said the ATO had to make sense.

Also for the CGT exemption to take place you can't have another PPOR while you are renting your first property otherwise it gets real messy.

Cheers

Tom

From what I recall, deductions can be claimed proportionally according to the floor area that is rented compared to total floor area. Same concept when it comes to CGT. You can't claim full PPOR exemption if you use the property to produce income. Someone else can verify this.

I assume you're asking the last question due to FHOG? If you can prove…[Read more]

As Jamie alluded to, with serviced apartments you need a large deposit to buy as lenders see them as a higher risk than normal residential security.

That means if you are looking at multiple investment properties down the track, you either need a lot of cash or access to equity to purchase.

Personally I think the Docklands is oversaturated with…[Read more]

A lot of the banks are coming to the fore on fixed rates. Citibank did something similar yesterday with 1, 2 & 3 year fixed at 5.55% with $1000 refinancing and free 60 day rate lock.

However as you can still get variable packages around the 5.9% – 6.0% mark, it still bodes that age old question whether to fix or not for the long term.

Cheers

Tom

So therefore, the spouse can then legally claim the full loan value as deductible debt, even if it is above the original amount, yes?

Since he is from Victoria, is he able to "sell" the property to his spouse without incurring stamp duty, she takes out the loan for maximum value on the apartment and makes it into an investment, and he just happens to use the excess money for the new PPOR?

Or do I have my wires crossed somewhere?

Cheers

Tom

The lease for one my tenants runs out in December. Their present will be a rent increase

Cheers

Tom

In regards to the loan itself, should be setup up as interest only and with offset (unless you have a PPOR loan in which case the offset in the linked to that).

As for fixed or variable, personally I don't like fixed for the very reason that life is full of surprises, and you don't know what may happen in the future (which may cause one to break…[Read more]

Hi Goatus,

Unfortunately you don't have much usable equity. While you do have $60K total equity, maximum loan lenders will allow is 90% of property value, not the equity itself.

Loan 1: $300K x 0.9 = $270K – $260K = $10K usable equity
Loan 2: $320K x 0.9 = $288K, already owe $300K, can't access.

Therefore only $10K is usable…[Read more]

As Terry mentioned, you could have definitely structured your loans differently to be more tax effective.

The IP loan should be IO, and the deposit shouldn't have been so high. At worst case if you wanted to put 20% deposit on the IP and didn't want to pay LMI, you should have paid it into the first home loan (assuming it is a PPOR), and then…[Read more]

Interesting that its a sale through a real estate agent, yet is at a value about 40% down from a valuation 2 years. Essendon is at the higher end of the scale, and though the top end of the market has fallen away somewhat, prices in Essendon have not dropped that dramatically.

Cheers,

Tom

Did not know about the 10 year lifespan. Cheers for passing this on Derek. Have to substitute a few now I know this.

Cheers,

Tom

Cannot see state governments anywhere abolishing stamp duty totally for all buyers. It's too big of a cash cow for them and will have big impacts on budgets if they were to scrap it.

Cheers

Tom

An offset isn't exactly like a term deposit where pays you interest, it is an account that saves you interest tax free at the same rate as the home loan account.

More beneficial than a term deposit, thats for sure though.

First thing you don't do is apply with different banks at will. Each time you do, it hits your credit file, and multiple enquiries in a short time frame raises a red flag, and can ruin your credit file for future requests (as lenders think the worse in that you have been rejected every time).

Make sure you raise enough funds for a deposit, costs,…[Read more]

Redrager,

The amount of equity depends on the current value of the property. Your local realestate agent may give you a general idea what the property is worth, but usually exaggerate and anyhow lenders look for proper valuations. Each lender has their own set of valuers they work with, and since it's not an exact science the property value may…[Read more]