The use of the funds determines deductibility, not the original purpose, or what the bank classifies the loan as.

That is generally how to do it.
You would want to try to structure it so that you get as much of the debt on owner occupied rates to save interest. Depending on your current set up it might be better to secure 80% on the home and 25% on the IP!

I think it generally best to find a town planner in the suburb of the land, or surrounding areas as those planners may be more familiar with the relevant council than someone far away.

Where is the land?

I am using a town planner now who are located about 5km away from me – yet I have never met them and don’t plan to.

Yes sounds real and possible.

No change in laws recently.
Transfer is a disposal which is a CGT trigger. If the main residence was a CGT exempt asset there would be no CGT. But this property was an investment property before becoming a main residence.

No limit. They will have policies in place, but they will also claim discharge forms have not been received, or they are incorrectly filled in.

I would suggest you try to find out what the delay is and if it is the outgoing Mortgagee then get onto their complaints department.

Hi Arvid

1. why?
2. this will be the cost base, but it could still be CGT exempt.
3. Depreciation of fixtures and fittings won’t be available because the house is not new. Only building works could be claimed.

around 2 weeks after returning signed docs – but Generally the outgoing mortgagee will try to delay things.

Transfer of title will result in a CGT event being triggered.
Even if there is no consideration it will be assumed you sold to wife at market value.
Because it was an investment it is probably that tax will be payable.

But seek specific advice

Yes option 2 would be preferred as it will increase tax deductions – assuming ownership is the same.

The interest rate will depend on how you do it. You could get owner occupied rates if you are careful.
But make sure you split the loan before you deposit the money.

And don’t forget option 3
Keep the cash where it is and just borrow against the main residence for a further loan.

Added to your other income and taxed accordingly. But there may be a double taxation agreement so you might get a credit for tax paid overseas – sort of

Seems like you have 2 loans related to that property – $150k and $500k.

Are you selling at a lost?

If you don’t pay off the $150k you cannot keep claiming the interest. You could keep the loan open as it is secured by another property you are keeping. But if you direct that $150k to the home loan you would still have another loan of $150k owing…[Read more]

I would say the builder is probably correct with this one.
Why did you agree to that clause saying they would not get the OC?

If I was you…

Probably borrow up to 80% of the home loan on owner occupied rates and use this to purchase the investment property without mortgaging it. But it sounds like you want more properties than 1 IP so go for 80% LVR on the investment property as well.

Once settled use the main residence loan to pay down the IP loan (to save interest…[Read more]

How did the vendor take money from your account?

Sounds like no body has paid the council yet to me. You probably received a credit for the vendor’s share up to settlement and you have to pay this plus your share to the council.

Best to check with your lawyer because if you don’t pay the council you will end up with a default judgment on your…[Read more]

No, they have paid you their paid of the council fees.
If you don’t pay the council will take action against you. you are liable.

Usually at settlment, in NSW at least, the purchaser will take into account the unpaid rates etc and receive a credit for this at settlement from the vendor but the new purchaser will actually pay the rates. Sometimes a cheque is requested from the vendor made out to the council and this is forwarded to council for payment after settlement.

Yes a surveyor would be the one to confirm boundaries. This should have been recommeneded by the conveyancer but most buyers wouldn’t do one because of the costs involved. I have never done one myself.

Perhaps the next door has done a survery which they might give you a copy of so as to save you some money – but you might want to check the other…[Read more]