What happens when rates go up?

There is no point in buying a property just because it puts $100 pw in your pocket. You need to consider whether there is growth potential which is much more important.

ankitjain wrote:

A) If a person does an individual SMSF then property overseas is in the persons name
 

It is not possible to have a SMSF with one member who is also trustee. This is because you cannot hold property on trust for yourself so such a trust would fail. (SMSF is a trust).

changing names would trigger CGT and bringing money into Australia is generally not taxable so working or not doesn't really matter. For further investing it would be worth considering though.

You should go and see a tax advisor as you would be required to declare the income from the properties and the CG too.

Transferring them to your wife now would be a CGT event so wouldn't save anything on the tax.

Before bringing the money in you should consider some asset protection strategies and there may be some tax strategies too.

Not so straight forward – who will own the property for example?

Hi Ziv,

I will be in Osaka around Nov/Dec before it gets too cold I hope. Do you deal in any properties around that area?

I think Richard was referring to serviceability calculations by lenders.

If you will be using a company as trustee then the company is merely a legal owner with no tax consequences. Income flows through the trust and is not normally taxed in the hands of the trustee. The income is distributed to the beneficiaries who pay tax at their own marginal rates. If the trustee doesn't make a declaration to distribute income…[Read more]

cmartyn23 wrote:
yea those are all good points you guys are making… do you have any recommendation for me in terms of mortgage broker, accountant or legal??? 

Nah, wouldn't know where to find a broker!? Don't think Richard or Jamie would know either.

Where are you located?

paradigmv wrote:
Found this advice from BANTACS that I believe should answer my question above:

"The basic rule is that the interest on a loan is only tax deductible when the money was used to buy an income producing asset or to refinance a loan that was used to buy an income producing asset."

Looks like the answer is YES – I can sell my PPOR…[Read more]

There is a thread about them on the invested forum.

Watch out for the aggregation of stamp duty provisions too.

pliddi wrote:
Hi Terry – in your latter scenario, getting new directors for each company trustee would basically have the same advantages (and disadvantages) of getting someone to go guarantor for you on a loan, correct?

Just wanted to clarify if the option you outlined was simply for the theory of it, as opposed to presenting an option with…[Read more]

yes, section 118-145 ITAA 1997

PLC wrote:
Terry, as a hypothetical what if the money was paid back into the PPOR loan (which is 100% investment from what has been advised), and withdrawn at a later date. No mixed loan from what I can see, so should be fully deductible?

Cheers

Tom

My argument would be that the money borrowed and placed into an offset account is no longer…[Read more]

PLC wrote:
From what I recall, it's the person whose name is on the title who gets all the benefits. So if the wifes name is the only one on title, but the loan is in two names, it won't matter as all income and expenses would be attributed to the wife.

Cheers

Tom

This is generally true, but not always.

for example A and B own a…[Read more]

Qlds007 wrote:
As i say to most new investor clients when choosing a mortgage broker it is matter of looking at someone who walks the walk and talks the same talk as you do.

No point in going to a local broker telling him you have $300K equity want to build a portfolio and ask him to structure a loan set up for you when he tells you he has 5%…[Read more]

paradigmv wrote:
Ok we definitely dont want to go down the mixed loan path… I take it what I need to do then is clearly split that IP loan into one 170k investment portion, and another 100k private portion… then fully pay back the 100k private portion.  When I'm ready I can then take out that 100k as a new investment loan towards the deposit…[Read more]

paradigmv wrote:
Happily (in a sea of despair), OSR does allow this.  It is not allowed for the FHOG, but is for the first home owner zero stamp duty concession.

Top call centre question #1 listed on OSR website:
Q: "A husband and wife purchase a home to live in as their principal place of residence. The property is valued at $490,000. The…[Read more]