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]

GST generally only payable on new property. You have to consider if this would result in the property being classed as new – check the GST Act – New Tax System……..Act

Asset protection first – you wouldn't want to lose that $200k

Write them a letter and enclose a copy of your valuation. Should be fine.

The law is study is assessible at market rates. You can challenge the assessment with proof of market rate. Did you get a valuation done?

This has nothing to do with loans so if you want to refinance you will still have to convince the valuer of the new bank that your house is worth much more than you paid for it. Not easy.

If you want asset protection then you should look at using discretioanry trusts and superannuation as your investment vehicles.

But it is not just the type of trust that is important but how it is structured and how it is used. Getting it wrong or messing things up can result in litigation and or loss of assets.

See this recent NSW case…[Read more]

investec wrote:
i just get confused a bit …..check it out… does it matter really that your IP is negatively geared or has zero gearing (ie rent equals loan repayments) as the tenant (other people 's money) is paying the loan anyways…. and even at the end if hold for lets say 10years and then sell even at the same price as you bought… you…[Read more]

Harmony25 wrote:
My major concern is employment, what happens if one of us loses job.?

In that case you have to plan for it. What would happen cashflow wise for example – hopefully a rented property wouldn’t be costing you much money per week. How easy would it be for either of you to find a new job, how long would it take for example.

I have…[Read more]

Harmony25 wrote:
My situation is as follows

PPOR. Valuation 630k. Loan 360k
IP. Valuation 400k. Loan (separate, different bank) 300k yield 5.15%

Combined income gross $190k pa

My question is is it wise to invest in another IP? We are in the late 40s and a bit concerned taking on further debt.
Please share your thoughts.
Thank you
Joe

It…[Read more]

I would suggest you be careful if buying a small studio under 45-50sq m, Harder to get finance means harder to sell which could restrict growth.

How are you going to park the $90k?

wilko1 wrote:
Transferring between spouses would come in handy if one Half suddenly got a pay rise whilst the other stopped working. Terry, Are there rules that say that you can only transfer ownership for estate planning reasons over the obvious tax minimisation reasons ? 

Hi Wilko,

The ATO has indicated in a few publications that a spouse…[Read more]

PCF Investor wrote:
I see. So would it be best to see an accountant and a lawyer at the same time? I guess what I'm asking is where do I go and who do I make an appointment with. To sit down with them, explain my whole financial situation, explain what I'm planning to do and have them tell me my best options? Do you recommend any businesses or…[Read more]

PCF Investor wrote:
Hi Jamie,

Thanks for the advice. In regards to the finance person, who would best be able to give me advice on which structure is right for my circumstances? An accountant, lawyer, mortage broker??? All of the above? I'm willing to shell out decent $$$ in order to get my afairs right from the start and to maintain them. I…[Read more]

Couples can only claim one property between them as the main residence. THis includes defactos.

Don't forget in VIC there is stamp duty exemptions for transfers between spouses.

No minimum time period is specified in the legislation. Must genuniely make the property your main residence.

Yes I know about trusts and these sorts of things.

Seems your understanding of these things needs developing. Who told you "must not currently own property" and why? Probably for asset protection maybe.

You need legal advice on the transferring of property to a trust as there are several issues – no asset protection if you get it wrong for…[Read more]

It all depends on the circumstances. Borrowing costs are generally deductible over 5 years but if the LMI is incurred on a PPOR secured loan which is increased to access the equity for possible future purchases then it possibly won't be deductible.

Depends on the set up. I would suggest you get some tax advice before doing this.