But how do you know if it is going to be an easy conveyance?

Conveyancers are not qualfied to advise in other related areas either – sucession issues, asset protection, bankruptcy.
What if it turns out to be the executor of a deceased estate…

Interesting question.

I don't know the definitive answer but would suspect it would not be classed as your main residence while you are absent. So this may effect your pension. Once you move back in you may be able to count it as a main residence agian.

No CGT likely as this seems to be a profit making enterprise rather than a long term investment. Profit likely to be taxed as income. Since new property involved GST would be on the sale price – possibly able to apply margin scheme

Unfortunately you won't be able to deduct any interest on your loan as you will be borrowing to buy a new owern occupied property.

You should seek some tax advice as there are possibly a few things you could do to enhance your situation.

keenan031 wrote:

If you are talking about that company (C….) then I believe they are not tax advisors and don't advise, but their method involves capitalising interest, but not claiming the interest on the capitalised portion.[/quote]

Terryw….yes that's the one I'm on about. Does this mean that they do it in a legit way? 

I have…[Read more]

keenan031 wrote:
Trickeymickey,

The system that I was enquiring about is NOT out of the book. It is how a particular property services company acquires IPs for your portfolio…..or as far as I am aware at this stage.

I found the book to be a good read.

If you are talking about that company (C….) then I believe they are not tax advisors…[Read more]

You might also want to look at
TD 2008/27
http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200827/NAT/ATO/00001
The principles governing the deductibility of compound interest are the same as those governing the deductibility of ordinary interest

PBR 69725
PBR 78123
PBR 94265
PBR 81797

PBR 93707
PBR 94313
PBR 93035
PBR 1011345133229

Yes, it is capitalising interest. This involves borrowing to pay investment property interest and diverting the rental income to pay off your non deductible debt.

ATO will likely disallow this if you are doing it with the dominant purpose of a tax advantage. See the
TD 2012/1

Income tax: can Part IVA of the Income Tax Assessment Act 1936 apply…[Read more]

1. Standard government charge – probably on your loan agreement
2. You can pay the fee into the loan and this owuld be the same as if you paid it in cash
3. no

Possible stamp duty issues.

PaulDobson wrote:
Sorry about the broken link It's now fixed and here it is again;  CLICK HERE

Yes, the knock on effect for all seminar presenters may be interesting.

Cheers,  Paul

Thanks Paul. Rick doesn’t actually say much does he.

And interesting what the flow on effect will be.

Ditto. Interesting but the otton link not work.

My answers are the same as Jamie about.

wilko1 wrote:
I mean just if you had the option from the beginning.
why pay principal and interest and have to worry about your usage/risk of withdrawn money from the loan. 
Just pay interest only with a offset account and pay principle payments into there. 

Yep, that wil greatly assist as no extra payments will have been made with the cash…[Read more]

I refer my clients to http://www.houseofwealth.com.au in Sydney and Melbourne. I also do legal work for a lot of their clients.

wilko1 wrote:
thats why you set up a offset account isnt it ? so you dont effect the loan balance

Different situation really.

Offset is for storing spare cash from savings an income.

Bergerson33 wrote:
Hi,

My partner and myself had a property investment company come to our home and took us through the general basics of property investment, they then organised to have us go to their office in the city for an obligation free meeting to see if we would be financially able to invest in property

I attended a meeting with…[Read more]

It need not be fixed each account could be variable or fixed, each could be IO or PI etc doesn't matter as long as the accounts are separate.

No. Not exactly.

You can always withdraw from a loan. But this is treated as new borrowings. So the interest on this new loan will only be deductible if you use the funds for investment or business purposes.

If you withdraw for private expenses you will create further problems as the loan will become mixed purpose and you will have to apportion…[Read more]

Meggyb7 wrote:
Hi Blockey, thanks for this information.  I'm looking at setting up the right structure, I will be buying properties to renovate and either sell or hold.  I currently have a family trust with a company trustee and a separate 'trading' company which is registered for GST.  I know that the structure will depend on my personal…[Read more]