Gift the money to a discretionary trust. Borrow it back later on to buy your PPOR. Have a loan agreement which gives an initial interest free period. Borrow 80% from the bank. Live in the property for 6 months, then move out. Rent it. You can still claim it as the main residence, but get all the deductions. Have the trust charge you reasonable…[Read more]

JacM wrote:
Oh you are right!  Says so on his info sheet http://www.terryw.com.au/  .  How have I gone this long and been unaware.  Angry with myself. 

Yes Jac, I have been a broker about 13 years now. Also qualified in tax, law (and financial planning – almost.)

Yes. Depending on what it is. New stove for example will be depreciated over 5 years or so. If you move in within only 2 weeks of fitting this then you could only claim 2 weeks worth.

Gee that is a high rate – you will be pleasantly surprised at the drop in interest each month!

In a SMSF it couldn't work if the vendor wanted to take a charge over the property.

Other entities should be ok. But the problem will be finding a lender willing do lend on this basis. Last time I looked I could not find any main stream lender. But that was a few years ago.

minds-eye wrote:
Hi, newbie question here. I've just learnt about the benefits of Interest only + Offset account just yesterday.

Is it fair to say that If i had a P+I loan repayment of 850 per week (500interest,350principal) would it be effectively exactly the same as paying 500 on IO and putting 350 into the offset account?

To me, it seems…[Read more]

What is the idiot going to report to the police? The shed has been used to grow drugs or something? Where is the proof.

I would report to the police that he come around and hassled you. It would be recorded on their system and can therefore be used as evidence if something did happen in the future.

Its a bit of a concern that they were driving around and looking for you and that they found you too! These blamer type people can be a little crazy when they don't get their own way. I would report it to the police.

HarryMarcus wrote:
Hi all,

I recently purchased (what was intended) to be an IP property (apartment) that I'm renovating, which will hopefully be complete in two or so weeks. Upon completion, I believe I've conservatively manufactured $40-50k.

My PPOR is located within the same suburb and currently has approximately $100k in equity. 

This is…[Read more]

JacM wrote:
re: If I move into the new property, will my old PPoR remain CGT exempt for up to 6 years?

No.  Once you move into another property that you own, your original property is immediately no longer eligible for the exemption.  The only circumstance under which you can sort of have two PPORs on the go at once is if you are in the process…[Read more]

Why not move in first so the whole period can be considered as your main residence? If you rent it first any capital gain will be apportioned over time.

Will you pay stamp duty? if not you cannot claim it.

LMI would need to be apportioned

You don't necessarily have to lose your 0.25%.

Certainly not a scam. This has been around for hundreds of years.

Consider structure set up too.

Future deductibility, savings, CGT etc. It may be posisble to set it up so that the first proeprty could be CGT free by simply living in it briefly.

Property is subject to CGT. One exemption is for main residences. If you can establish it as a main residence first and then move it and don't rent it it could be exempt indefinitely.

I would prefer a LOC initally so as to maintain deductibility. A standard loan will cause problems unless you can directly access money available in redraw.

It is very rare for a val to come in over purchase price. I had one once with a unit. Similar unit next door sold for about 20% more. The bank was able to give a 95% LVR loan based on pp, but not LMI because they are able to base this on valuation.

Sounds like your broker is not capable – make the switch sooner rather than suffer the consequences of more hits on the CRAA etc

It would be the lower of the market value or contract price. If you buy if for $95k that is likely the value that it will come in at

Freckle wrote:
Terry can confirm but the owner and agent are required by law to disclose anything and everything that is material to the sale. Any component of the property be it the house, out buildings, pools, verandas etc etc that have been constructed without council approval IE a permit effectively renders any contract null and void.

Not…[Read more]