Sounds like you need to do some serious research and quick.

Paul B. wrote:
I apologise for my ignorance but why wouldn't you just use the money straight from your offset account?

Because the interst on the home loan would increase and this would not be deducitble.

50% discount on assets held longer than 12 months – from date of contract.

But when you say 'complete' does that mean you are building something with the aim of selling for a profit? If so CGT may not apply, but straight income tax.

What do you mean by Vendor Finance?

Installment contract would mean you would not get title, generally, until you pay him in full.

Borrowing the deposit would mean you still need a bank loan.

The interest on this will only be deductible if:
1. It is used for investment or business purposes, and
2. If it is properly transacted – you could lose deductibility if it passes through a savings account or cheque account.

You will find that GST doesn't depend on the entity, but on the property type. GST is payable on new houses whether you buy in personal names or company – but it will be built into the house.

But you should not use a company for several reasons
1. No 50% CGT discount.
2. flat 30% tax.
3. asset protection

Better to look into trusts and you may be…[Read more]

BigCubez wrote:
Hahaha

What is so funny? I have googled  your name and not found anything.

Paul B. wrote:

Terryw wrote:
This is how I would do it.

List all the cash expenses in rows in excel
strata
rates
insurance
management
total

Then list all the non cash deductions
depreciation builing
depreciation fittings
loan costs (over 5 years).
total

Total costs = Cash costs + Non Cash costs

Income = rent

Taxable income of the property…[Read more]

This is how I would do it.

List all the cash expenses in rows in excel
strata
rates
insurance
management
total

Then list all the non cash deductions
depreciation builing
depreciation fittings
loan costs (over 5 years).
total

Total costs = Cash costs + Non Cash costs

Income = rent

Taxable income of the property = Income less expenses
= Rent -…[Read more]

People often get paranoid when trying to break the law

This is exactly what the ATO could do and it would be very easy with data matching. But just because the electricity was in another name doesn't mean it wasn't your main residence.

Probably best to sit down a use an excel spreadsheet. Only use the phone app for rough calcs.

Are you willing to go into a loan with someone you don't know? What if they stop paying the bank?

What if they were to die? Divorce? Bankrupt?

vice versa too.

Did you live there?

If you did then it could be exempt for up to 6 years. What proof do you have you lived there? What proof would the ATO have that you didn't?

No minimum period.

Did you live there?

If you did then it could be exempt for up to 6 years. What proof do you have you lived there? What proof would the ATO have that you didn't?

Jamie M wrote:
I doubt it – not with an OTP purchase. 

Cheers

Jamie

But there would likely be clauses which could enable either party to terminate the contract if x is not done by y. x could be registration of sub-division with y being the date.

Get some legal advice as you may be able to legally terminate the contract.

If you don't proceed the vendor will often just take the 10% and leave it at that. But they could also sue you for any short fall.

I can point you to a recent QLD case where a developer was awarded approx $1mil for a small unit that didn't settle – value about $600k from…[Read more]

No. Agents cannot value properties unless they are licenced valuers. A letter won't even help you. You need a valuation from a valuer.

DOUGADCOCK wrote:
thanks the bank did the valuation. Yes ill get a completely separate loan for the new property. Is that what you meant by stand stand alone. What i plan to do is get a 95% lvr using the equity from my IP and pay LMI with money i have. Is there any thing i should be aware of before i do this, This is my first time using equity,…[Read more]

Don't do it until after settlement or you may face the risk of the loan being withdrawn.

jared denny wrote:
Hello

Thank you for time you have taken to read this post,  any suggestions will be greatly appreciated

For a high income earner say 120kpa is it better to buy positive cashflow IP's or Negative cashflow IP's?, I have read Steve's book and Steve recommends positive cash flow properties,  would you suggest they be after or…[Read more]