Excel

I am a finance broker so I can look at their policies!

You would have created a mess if you have ever redrawn from the loan. If you have never made a withdrawal then the lowest balance would be the deductible portion of the loan.

Depends on the bank and the LVR, location of property and owner etc.

Some banks Yes. I’ve just done one with ANZ.

I have just told one member of this forum that i have to charge him $500 to discuss anything further. Going back through my emails I see the first time he contacted me was in 2007. I recalled various long phone calls numerous hours explaining loan structures, deductibility of interest etc. He would go away and the resurface approximately every 12…[Read more]

You should probably charge roughly 50%, some work it out on floor area, but 2 bedrooms out of 4 works out around 50%.

If you are charging market rent you could claim this x% of expenses, but if you are charging 80% of market rent it would be more like 80% x 50% of expenses.

Keep in mind you will lose the full CGT exemption if income earning.

Get some tax advice as this is confusing.

You will need to draw a time line and consider the overlappinng ownership periods.

You should also look at the legislation:
s118-145 the absence from main residence rule
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

s118-150 = 4 year rule on…[Read more]

Once exchanged you would have an equitable interest in the property.

It can’t be a main residence until after you have lived in it. So it you don’t live in it first it will always be subject to CGT on a proportionate basis. If you later move in and establish it as the main residence and then move out it could be still classsed as the main residence (provided the other requirements met) from that point on for up…[Read more]

It can’t be a main residence without actually living there as the main residence..

All insurances.

Company title is not difficult to finance, most banks offer 80% LVR with St George going to 85%.

With that sort of equity and income you shouldnt have a problem.

But what you think is undermarket value is probably not because company title is generally worth less that strata as it is harder to finance and therefore harder to sell

When selling any expense you have not otherwise claimed could be used to reduce the cost base for cGT purposes.

One reason a company is considered is beccause of land tax in NSW. A company will get a new threshold. A developer may not get the 50% CGT discount so this may not be an issue for some people. I would generally not recommend a company but I have a few clients who already own property in a company.

Hi Anthony K.

I don’t think I suggested a SMSF can have just 1 person as trustee, but to clarify definitely a SMSF cannot have a single person as trustee. This is because of trust law, a person cannot hold property on trust for themselves it is also written in the SIS Act

Buying real property as a trustee is often a mistake, especially in NSW because of land tax. 1.6% of land value in tax per year for a property can be a killer.

e.g $400,0000 land value = Nil tax in your own name (assuming your first property) but $8000 per year in land tax every year. That is a huge difference.

Add in the fact that a trust is…[Read more]

You own part of the company and are director = clearly a case of self employment.
Westpac is a public company – hugely diferent to a private company.

You will generally need 2 years financials for yourself and the company they will take into account your wages and your share of the profits plus ad backs such as one off expenses, some interest,…[Read more]

this doesn’t make sense! Borrow at 9% and invest at 5%?

What about hairdressing?

I bought a hair cut over the internet and it didn’t turn out too well.

Contracts for land need to be in writing to be enforceable. But they could probably enforce an oral lease becasue of the RTA. What about bond – any been collected and lodged with fair trading etc

Worry about insurance too.