AddsI wont give you the lecture about investing with friends speil as it sounds like you are both good mates.You say that you live with your g/f but also you have a PPOR. I am assuming that it started out life as a PPOR and that you are now renting it out.If you buy an IP together then this will not hamper your friends ability to obtain the FHOG…[Read more]

KenzelOk let us try and answer this one for youLoan balance:  80KEquity:              20K (i.e. built up via PI loan only – ignoring cap. growth)Offset:              10KWhat I would have suggested if you had been a client of mine and based on the fact that you still intend to buy a new PPOR one day would have been to gear as high as possible f…[Read more]

WJ – no dramasHowever just to let you know a Superanuation Fund also pays CGT at 15% or 10% of the asset is held for >365 days.

MickI did not say you could avoid CGT in fact i making comment on the statement made by WJ Hooker when he stated that if you buy in Trust then you can sell the properties with NO capital gains Tax.

Hi JeromeNo problems at allIP = Investment Property.SMSF = Self Managed Super FundSISA = Superanuation Industry Supervision Act (Legislation which governs Superanuation Funds)PPOR = Principal place of residence (own home)QS = Quantity Surveyor

Yes there are lenders out there that lend against the Gross Realisation or end value of the project but at $300-$400K per property the deals douns too small.Most standard development deals on say 4+ townhouses / units are done on a GR basis.This day and age these lenders want to see a good asset base (even if they are not taking security against…[Read more]

Hi KenzelThe determining factor applied by the ATO to ascertain whether the interest is deductible relates soley to the  "Purpose of the Loan". By keeping the loan and the offset account separate their is no doubt and all you would do is link the offset account to the new PPOR when you rent out the existing property. 

Mez finance is certainly still available albeit at a considerably higher interest rate but a lot more information would be required to ascertain whether the deal would qualify.If you want shoot me an email with the details of the site and the party involved i can tell you what can be done.

KenzelIn addition i would be converting your PPOR loan to Interest only as well and linking it to the 100% offset A/c.This will give you the same interest saving but also will offer you flexibility when you come to rent the property out.

Hi PetrosRegretfully you are uable to transfer an existing residential property into your SMSF.Stupid thing is you can sell the existing IP and then your SMSF can buy the IP next to yours and gear against it.You could salary sacrifice on make deductible contributions and use these to support the shortfall.The SISA rules dont make sense sometimes…[Read more]

Never like to disagree with a fellow foum member but do be careful because this statement is clearly not true:If you wish to retire one day with lots of properties in your trust, then you can sell them with no capital gains tax.A Trust is liable to pay CGT the same as any other entity.

TanjaaWill give you his details Wednesday but if you want an excellent property Accountant and are happy to travel to the Northern Gold Coast feel free to call my Accountant who has acted for me for the last 12 years.His name is Steve Hodgkinson and he is a partner at the Gold Business Group in Southport.Steve can be contacted on 5532 2855.Tell…[Read more]

HP if you are prepared to add the Gold Coast in your search for an excellent Accountant then i can certainly recommend an excellent property based Accountant who is an expert on TrustsMy own Accountant Steve Hodgkinson is a partner at the Gold Business Group in Southport and can be contacted on 55322855.Steve is a very knowledgeable and a good…[Read more]

Wow DigJust be carefull rushing out and buying a PPOR then turning in into an IP as you will only be able to deduct the interest on the loan balance at the time and you wont be able to redraw funds and claim a deduction against the interest.You really need to ensure that the loan structure is set up correctly to ensure that you can maximise your…[Read more]

Properyt Income and all property expenses and details from your QS report.

Sorry GOM missed your last post.Yes a DFT incurs Land Tax in Qld also.The following link may assist you in understanding more about the ATO audit of HDT'shttp://law.ato.gov.au/atolaw/view.htm?DocID=TPA/TA20083/NAT/ATO/00001

KarlmWithout the actual figures it is difficult to summise whether it is is + or – but if you have had to pay out it sounds to me like it is -.Dont you love those Accountants who tell you not to bother claiming anything in the QS report.Did you claim all of your loan costs etc proportionalised over the loan term or 5 years ?Sounds like you are…[Read more]

KarlmRemember in addition to the cash deductions such as interest, rates and body corporate fees etc there are also non cash items you can claim which include Depreciation and Building Write off.Have you arranged for a QS report to be done on the property ?Is your current loan an interest only loan or a Principal & Interest loan ?Are you claiming…[Read more]

EDMYou might have opened the proverbial can of worms.I think you will many many forumites have purchased through Big Kev and not all will have happy stories to tell.I can tell you a few from the TIC early days but these have been posted before.Do a quick search and you will see what others have said over the years.

PdvYes an increase would be considered as a new loan and for all intense and purposes the lender would start again.One of the biggest differences is the fact that most lenders are very cautious these days as to what you want the "Cash Out" funds for.Your mortgage broker however should be able to guide you around the maze.