Say it is a $540,000 property with $40,000 in stamp duty and costs. You have $200k cash.

Since you are going to rent the property out in the future you would want to borrow 104% of the purchase price. This may be hard to do without other security, but thinking outside the square there are a few strategies.

Imagine if you you could borrow…[Read more]

Jimmy,

If it is semi-detached then it may be possible to live in the entire property for a short period. then move out and rent it and use the temporary absence provisions to have the whole property free from CGT for up to 6 years. Depends on many things though so seek tax advice.

I am a solicitor and a Chartered Tax Adivsor, but not an accountant – located in Sydney.

Roxy lacey wrote:
Thanks terry and  qlds007,

yes, i do have a lot to learn and will seek professional advice,  can you  let me know how the offset account would work and can I access that money?  Let's assume I purchase a $500,000 property, we put in $1200 a month and we receive $1600 a month in rent, 

thanks for for being patient with a…[Read more]

Not sure what you mean by that.

If there is borrowings involved then the property must be held under trust until the loan is repaid. the legal owner is the trustee of this custodian trust. The beneficiary owner is the trustee of the SMSF for the SMSF members. So any income will go to the SMSF to be held in trust for the members until they meet a…[Read more]

Maybe i misinterpreted your post, but If you buy in a SMSF the rent cannot be used to pay down your PPOR. Rent received by the SMSF belongs to the SMSF and you can only access your super money once you meet a condition of release.

Consider whether you need to be registered as a real estate agent too

Seek tax advice. It is probably better to stay in it build the GF and establish it all as your main residence (if possible and then rent it all out. It could then be subjecct to the main residence CGT exemption.

6_anthony wrote:
Hi Everyone,

I was wondering if it is more efficient to put any extra cash I have for the time being straight onto my home loan and then re-draw if I need or whether putting it into and offset account would have the same effect? As far as repayments go, would they be the same if I put 10k into an offset account rather than…[Read more]

Sounds like the broker was lying to you about the progress.

I would say it is probably not possible to get such a loan through LMI. 5 acres will be difficult but the main problem sounds like the house

Lots of issues with borrowing that much money – what if you or them died? The loan needs to be clearly documented. What if you became insolvent – they could lose their money.

What if you couldn't give it back? What if you purchased for cash and then couldnt get  a loan

etc

There is a few ways you could do this.

1. Borrow money from someone and you purchase (or your entity).
2. Joint purchase – you and them (or you own entities).
3. They purchase and you arrange things – a JV.

You need to be careful about needing a real estate licence for 3.
You find people who may be interested by talking – they have to hear about…[Read more]

I agree – Darryl!

I just use price divided by annual rent.

charlie123 wrote:
Hi Everybody,

Over the years I have renovated a number of properties and flipped them  for a quick profit. I am now looking for another project whereby instead of agreeing to purchase the property, I fund the renovations and do a profit share with the vendor. I can see this being advantageous for the vendor because they will…[Read more]

You can only consolidate a loan if you  have equity.

mortgage free debt free – by the title of that they would want you to pay PI!

IO loans are good as it will save you tax until you can pay off non deductible debt. If you are paying down an investment property then this is money which could have gone to paying off your home loan which is non deductible.

The Newbie Investor wrote:

I have been reading a lot on these forums and everyone talks about interest only loan structures, I have read a few of austrailan property books and all go against the interest only loans, am I missing something here??

I would be suprised if this is the case. Can you point out any books in which this is recommended?

FIRB. See the Foreigin incursions and takeovers Act for foreign purchasers. Or ring the FIRB.

Don't confuse a mortgage with a loan. The mortgage is the lenders interest secured over the property. The loan is the money lent.

You can only sell a property if the mortgage is discharged and title released. To get a bank to release the mortgage the loan needs to be repaid in full.

Interest only acrues daily and is added monthly. So if you have…[Read more]