Chris2012 wrote:
We had the property revalued and extended to loan ready for our next purchase.

Could I pay the council rates of the IP, which is a tax deductible expense, from these borrowed funds?

Yes you can. But the important question is how do you get access to the funds?I

If you transfer to a cheque account to write a cheque then the…[Read more]

N@than wrote:
For a portfolio that is mostly based in mining towns why is your yield so low!?? Doesn't sound enticing at all sorry!

Must be the cashflow after expenses??

First property could still be CGT free depending on the circumstances.

Probably, but will depend on the circumstances.

dgirl wrote:
 

So with this in mind, which strategy is better:

1.  sell the PPOR & pay cash for the deposit on 500K IP with 450K loan 450K in offset
2.  sell the PPOR & pay cash for the deposits on two IPs (and borrow more funds)
3.  release the equity, and buy a 400K property

…any other options? 

1.
The lose the CGT exemption and…[Read more]

You need to consider
– strike price
– term
– how much comes off
– etc

eg a property valued at $500,000 now

You take a one year option to buy it for $505,000 with you paying the equivalent of the loan repayments

or

You take a 1 year option to buy it at market value in 12 months time as determined by the average of 2 independant…[Read more]

Qlds007 wrote:
Yes as been said do a fair bit of Spousal Transfer work and not as easy it sounds.

Firstly need to do the Transfer and the new loan at the same time and be suprised how many lenders can't wrap their heads around it.

Also sorry to say Stamp Duty is payable but will only be on the balance of the Transfer value and not on the full…[Read more]

gmh454 wrote:
also you would need to get the loans changed..

and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased

safe way is the divorce….

just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show

and I have seen it done, …[Read more]

In Australia settlors don't usually have any powers nor do they play any role in the trust after settling the initial sum.

If the settlor is a beneficary then there are adverse tax consequences for the trust – from memory, this is even if the settlor doesn't receive any benefit.

You can't transact with yourself.

If he owned property worth $250,000 she could buy this off him for $250,000

If the husband owns 50% and the wife owns 50% then she could buy his share and then end up with 100%.

Into_property wrote:
Hmmm, so from the sound of it this would be pretty much be the case with any lease option type situation ( be it sandwich or just standard ).  Obviously the risk being heightened in this scenario due to the pre existing mortgage stress.  Is this the case Terry?

Well, any situation in which you are taking an option to…[Read more]

must be market rates if you want to claim interest. Can sell  for whatever price but CGT and stamp duty would also be taken at market rates.

Into_property wrote:
Hi Terry, Any suggestions as the safest way to setup this type of transaction?

Not really.

You may think you are helping the owner etc but you may not know the full extent of their financial problems. If they do down the bank is going to get first take on their property. Then other secured creditors and then the…[Read more]

Depends on the situation.

Very dangerous.

Make sure you get legal advice otherwise you would be just one of many unsecured creditors down the track.

Yes, Part IVA could be an issue, but the ATO has released a publication saying the interest could be deductible ATO ID 2001/79

astroboy71 wrote:
If you have mortgaged IPs held under your name I can only assume that when you die your bank will sell them rather than allow you to give them to somebody in your Will. My logic is that they don't know the credit history of whoever your beneficiaries so why would they allow the mortgage owners to change name (?) Therefore I…[Read more]

Sorry, not talking about flats but the units issued by a trust.

jaideepm wrote:
Hi Guys,

From the above discussion i understand that CGT wont be taxed if the property is sold after retirement. My question is with relation to the period when the property is held and rented out before retirement, is the tax treatment same as it would had the IP been held by an individual or is it…[Read more]