Aosv,

I have no idea if you have an existing family trust. But if you do you should not use it to buy property especially if it is conducting a business.

Your investigations have lead you down the garden path, becase as a mortgage broker I can assure you that banks do look favourably to lending to trusts and companies as trustees of trusts – I…[Read more]

Hi.

Yes, I am not yet licenced to give financial advice yet (planning to be eventually), but can give legal and credit advice. Richard, I am looking at PIS who you recommended way back for my AFSL.

For Aosv, you should really look at possibly getting your spouse restructured for business into a trust structure of some sort. Another trust can…[Read more]

Depends on a few things – their PPOR or investment Pre/Post CGT etc

You will generally inherit the cost base as of the date of their death.

Its not wrong to pay down loans – it is good, but it could be more effective if you don't and restructure things slightly. If done properly it shouldn't cost any more in interest but can result in more tax savings.This

week I met a client and within 5 mins I had saved him about $5000 pa in tax by rejigging things with potentially much more…[Read more]

You would be a non resident for tax puposes. But you could still invest here – assuming you are a citizen, there would be no restrictions.

There are some CGT issues and any loss would be carried forward until the rents increase or your return.

You would have to check the situation in UK as this may affect your tax there.

Claire, both you are your partner can only claim one CGT exemption between you (if you mean spouses, defacto included).

If as above then probably best to just keep IO with all cash going into 1 offset account. Take the cash with you when changing residences – make a new offset on the one you are living in.

You may also want to consider your…[Read more]

Jason QLD wrote:
Hi Terry,

The $25k will be from cumulated income over each 6months period. The main intent being, placing the income directly into the offset account to generate a saving at the mortgage rate rather than the lower interest rate of a savings account.

Taking money from the offset account doesn't equal 'redraw' whilst it is the…[Read more]

Hi Claire,

How long will the cheap accomodation last?
Have you ever lived in one of these properties? Thinking main residence CGT exemption.
Will you or is it likely that any of these would ever be lived in?
Generally get a LOC on the one with the most equity. You can go to 90%, but as all of your debt is deductible this may not be so much of an…[Read more]

Jason QLD wrote:
Hi, I am new to this forum and IPs. I have been educating myself in IP ever since I made a deposit on an OTP property a year ago (stupid? Yes, but I needed something somewhat safe to get me started and to force my brain into reading books and doing research). My current plan is to live in this property for 6months to benefit…[Read more]

Simple really

Have an offset account on your PPOR. Get all rents paid into this account and all wages and income.

Then just direct debit out to the various loans when interest is charged.

Ideally also have a LOC in there somewhere. You can then borrow to pay all expenses related to the property, except interest. This will help you save non…[Read more]

Yeah, just a local lawyer probably wouldn't cut it. Australian consulate would be the way to go.

Yes, BFA is really the only way to protect. Costs a fortune because of the risks involved. $2k to $5k for a simple one. These can be done pre/during/post a relationship so it is not too late.

Just because she is 'renting' this doesn't mean she cannot claim. Probably has no effect if she is in a relationship with your mate.

Of course the other…[Read more]

Yep made-man, another thing to consider.

Yes, if redrawn money is used for investments then little problems for the moment. Problems can occur if down the track one proeprty becomes a main residence or perhaps one property sold.

Bank will treat as one big loan. You will have the burden of apporitoning interest.

Jac you read my mind. I was going to ask is that in VIC? ha ha.

Wendy,
The following factors need to be considered:
Taxation
CGT
Stamp Duty
Land Tax
Asset Protection
Contribution
Long term goals
succession
ability to transfer to a SMSF later.
etc

To keep it simple, so you had a $100,000 loan for an investment property.
You thought you would save interest by parking your $20,000 savings in the offset/redraw.

1. If it is an offset
You pay interest on $80,000. This is fully deductible

You later take out $20k to use as deposit on the new PPOR you will buy.
Interest on the loan is now…[Read more]

mrpeterb wrote:
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Do i need to put my current PPOR into a Trust to give me the best opportunity with the banks for my first couple of investments?
Does anyone know of a good Lawyer and Accountant based in NZ to help me get setup for my venture?
Can somebody explain in more detail Steves chapter on borrowing capacity? where he describes that on…[Read more]

Be very wary of off the plan.

Also generally only 1 offset account is needed, unless your cash will exceed the loan amount. Or maybe the properties are going to be in different names.

Discuss exit strategies up front. What happens when one wants out?

Is the offset account an offset account or a redraw account called an offset? There could be a big effect if the loan is investment related.