MMWhich part of Chapel Hill is the property ?I have lived in CH for the last 8 years so now most of the streets fairly well.What do you think the current valuation for the land would be.

MarkDoes this mean that the deductions could be used by me on my Personal Tax Return and if so does that mean that all other costs contribute to the negative gearing??Yes

Hi AndreaYes it is normal practise to borrow 100% of the purchase price plus sufficient to cover the acquisition costs of the property. Most people merely throw in the security of their own home and their Bank cross collateralises the 2 securities.This is where they go wrong and is not until the 2nd 3rd or 4th property realise they have…[Read more]

Yes It essence that is correct.

What will be the valuation:1) As  LVR against land purchase price and construction costs.2) Gross Realisation.Will the loan be done on a full status on lodoc basis.

CamNo it doesnt work like that. Costs will be apportioned between the 2 properties and Tax will be payable on the profit (difference between the end sale price less costs of construction etc of that unit).All that will happen is that by staggering the sales you can control when the CGT is payable i.e into the new Tax year by signing a contract 1st…[Read more]

One benefit i see with taking out insurance from Super accounts is that you pay ur premiums before tax.This is a very big benefit being able to claim the premium as a Tax deduction.

You will be unable to avoid CGT and possibly GST.I assume that you were careful in choosing the name in which you undertook the project i.e Discretionary Family Trust or in the name of the lower marginal tax rate payer.All you can do is defer the tax payable by staggering the contract dates but will not avoid paying it.

PM me and i maybe able to help you.

TonyAll the lender will want is for the loan to be repaid and will not care whether it be from the sale proceeds, the borrowers back pocket or a combination of both.If you have entered into a purchase contract and the vendor cannot settle because of this then your rights to sue for Specific Performance are the same as the Vendors in the case of…[Read more]

TonyIt maybe that the sale price is insufficient to pay out the outstanding mortgage and therefore the Bank will not allow for the Title to be released. Nothing uncommon there.

As Terry has mentioned the Stamp Duty exemption will vary from State to State (certainly wouldn't get it in Qld) but yes certainly worth looking at on the basis you are on the highest marginal Tax rate.Remember not every lender will understand or even want to work with you on this deal so make sure you Mortgage Broker is au fait with such…[Read more]

Hi DSRegretfully it doesnt work like that.The ATO look at the "purpose test" when deciding whether the interest is deductible or not.In your case the funds raised from the IP will be to reduce your PPOR loan and therefore would not qualify.If the property was sold into Trust then the entire amount of the interest charged on the new loan would…[Read more]

Hi MichelleRegretfully not  Does it mean that by restructuring this loan back up to the $389k as you suggest we can negatively gear the property?This is only possible if the property is sold to another entity i.e Trust structure or similar.

Yes both SGB and ANZ will go to 95% for expats and the full range of product suite is available.

Hi MattDont want to disagree with you but you certainly can claim the Grant and have done if for dozens of clients before.Maybe someone just didnt understand your question but i assure you you would be elligble.

Loan – Sorry no only get 1 bite of the cherry.

Hi MatNo an IP is not included as a residential property and you would qualify for the FHOG even if you had purchased an IP previously.The key wording is people buying or building their first home.

Hi HarryIt is a strategy we have used for literally dozens of clients however in saying all of this it is not for everyone.In essence the property is sold into a Trust structure with the loan being taken for the full current market value.Stamp duty is payable on the Transfer price however is added to the loan amount.As the total amount of the loa…[Read more]

PirateI think that all depends on what the qualifications are:If you asked me to fax to you a copy of my Degree in Economics Certificate it would probably take 2 weeks to find it around the house.If you wanted to ensure i was licensed and a Member of the MFAA then you could have it in 5 minutes.The responses you get from your Broker will enable y…[Read more]