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Amit they would be Depreciable items so YES can be claimed.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As JacM has mentioned any change in ownership will trigger both Stamp Duty and possibly a CGT.
Transferring the property to your parents may also have effect on their current or future pension entitlements if applicable so think long and hard about this before doing so.
You could always look to Transfer the property into Trust.
Of course if you intend to buy again or utilise the equity for your new business or further investment you will that any potential financier will take a charge over the security so the pecking order for potential creditors is diminished. Not so attractive to take legal action against someone who has an Asset with a Bank loan secured against it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly JacM you are too kind indeed but i will take every compliment i can get as i count the grey hairs daily and they are increasing in number.
What you have to remember The4ofus is that organisations like Aussie and Mortgage Choice are in the main franchises so the quality of advise is as good as the person running the franchisee or the staff them employee.
I have come across some excellent Mortgage Brokers with both organisations who now their onions but also the mass majority who wouldnt know how to structure an investment loan if it fell over their desk.
To often Brokers look for what is easy for them rather than what is best for the client both now and in the long run.
I usually ask a client would you take finance advice from someone who hadnt even paid off their own home let alone purchased their first investment property. I know i wouldnt.
It is like going to a Doctor who has done the studying, read the theory but never performed his first operation and asking him for advice on your medical condition.
I agree everyone has to start somewhere but too many Brokers are let loose on investors in my opinon without understanding the game and the realty of lending.
Let us know if you need further advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Answer is simple – Yes there are lenders who will treat the FHOG as genuine savings especially if the total loan is 90% or less.
Downside is that you wont receive the FHOG on Settlement of the land purchase but usually only on the first construction draw.
Obviously for a settlement timing issue this is a problem.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi MIA
Yes you can make extra repayment with an interest only loan (albeit some lenders have a real quirky way of working it out).
Sounds like you have the loan on a honeymoon rate (Yikes that could be an issue).
Definately look at an offset account for the PPOR loan.
Sorry to sound like a broken record but sounds like a complete loan mess.
Lodging a PAYG variation will aid your cash flow and save you interest on your PPOR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Orange, NSW
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Yours in Finance
Richard Taylor | Australia's leading private lender
Is it beneficial to consider buying your wives interest in the property out?
In some States you will incur Stamp Duty others not. Still might be worth depending on the numbers.
As Terry mentioned loosing out on the deductions might be painful in the short term.
Richard Taylor | Australia's leading private lender
MIA as you are looking at buying a PPOR I personally would be restructuring the 2 IP loans NOW rather than waiting as the interest is deductible.
Hate to say it still does sound to me like the deductions are being fully claimed and i would like to double check the numbers.
Every dollar helps and restucturing the loans and getting them set right could make the difference between an easier stress free life and sleeping at night and worrying about every tenant payment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jac you now me always try to provide both structured advice as well as entertainment in the same post.
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Yours in Finance
Richard Taylor | Australia's leading private lender
MAI
The Nth Qld market has certainly suffered over the last 12 months for a variety of reasons and I am sorry to hear about your situation.
If it helps i dont think it will last forever and as soon as Tourist return i am sure the local economy will pick up.
Now couple of things worth considering:
1) You mention that in a few years time the loan balance on the IP will be down to $155K which indicated to me that the loan is a principal & interets loan. I would strongly suggest you look to switch this to interest only as soon as you can.
2) I am unsure as to what rate of interest or indeed gross rent you are receiving but wouldnt have thought the weekly after Tax shortfall would have been that high. Are claiming all of the elligible deductions both cash and non cash?Without more personal information it is difficult to comment on the whole structure but to me the figures dont seem quiet right.
Dont get me wrong i am not suggesting you rush out and refinance but careful loan planning might be worth considering especially if it enables you to go forward with your new PPOR and reduce the interest and other outlays on your IP's.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mago without being funny be careful giving advice because what you have stated is clearly incorrect as i have mentioned on another separate post.
You can cretainly claim the interest on your loan balance once you move out of your PPOR and rent the property out however you cannot reborrow, redraw or take out further funds from the initial balance and claim the interets on this.
Of course depending on which State you are located in there is another way of doing this and making all of the interest deductible on the current market value. This comment is for another day and another post though.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Magoo
Your statement is incorrect.
The security does not matter it is the "purpose" of the funds that is inportant.
As i have said many a time before you could secure the entire loan against a pogo stick and have all of the interest deductible if the purpose of the loan is for investment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure it is a typing error by Terry but CGT is calculated on the Contract date (of course depending in which State you are in this could be the Exchange date) so just need to watch that.
One way of eliminating CGT is never never sell.
Appreciate it sounds silly but it does work.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Zaul sorry old mate i hate to say i think you might have been out in the Canadian sun too long.
Here is Oz finance is harder to obtain now than ever before and the new NCCP regulations mean supportive income is paramount.
I have a reasonable sized portfolio (Well i guess if 40 properties is reasonable sized) but certainly couldnt replicate what i have over time without a decent income.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i have financed 2 new purchases in Fortitude Valley this week alone and yields seem to be very strong.
Cant comment for West Melbourne but inner City Brisbane prices are certainly holding their own.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Great to hear Rose.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Always concerned when i read a lender provided financial advice.
For the benefit of the post we will assume the individual concerned was Licensed to do so.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Not at all Anthony.
Want read some of my early AM replies lol
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Anthony
Hate to say anyone providing Credit advice thru a Vendor Finance arrangement certainly needs to be NCCP compliant.
This is only the case where the property is being sold under an Instalment Finance arrangement.As Terry mentioned Paul was running a NCCP course.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
All depends if you mean move and give away or relocate.
Many of the removalists (Drake etc) will take it for free if you are giving them the house.
Relocation is a different kettle of fish and will depend on the Council are you are relocating it to.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
