Sounds like you might doing things wrong with that LOC. You have structured it so that it is not tax effective. You are paying down, but are you taking money out? Do you have any non deductible debt?

An offset account against your loan on the main residence perhaps>

I found that when typing on my iphone, in reply to a message on this forum, you type away and then it takes about 2 secs for the characters to appear on the screen. Doesn't seem to happen with other forums. And then the curser jumps around – which could be due to my fat fingers.

this foru
 Hard to navigate and stupid auto correct I give up trying to post on an iPhone 

I

Gazza21 wrote:
Hi TerryW,

Can you elaborate a bit on your points just in the process of planning a trust what should I include/avoid so assets can never be touched !?

Thanks..

Could write a book on this topic as there are so many ways a trusts assets could be at risk. 

Setting up through an accountant or your is very…[Read more]

Dubstep wrote:

.

        http://www.youtube.com/watch?v=LuDN2bCIyus

.

crazy video. wonder how they got approvals

MrLasVegas wrote:

2. My conveyancer didn't mention this to me when I bought – and the zonings were already rezoned before he was doing his research and due diligence with council etc and he didn't pick it up – do I have a legal case against him, assuming the value of my property will drop if the units are built around my house? I would NOT…[Read more]

You have set it up incorrectly.

You will find that you cannot claim the interest on the LOC which will be used to fund the new PPOR.
What you should have done was borrow money from your parents and used the LOC to repay this loan. You then ask you parents to lend you (0%) or gift you for the new property.

This would have saved you a bit in tax…[Read more]

Best to seek expert advice as this is complex

Just looked at the pictures and you were very brave buying that!

Good story, but spoiled by that silly Kevin Young quote!

You have to be careful how you move forward and how you use that cash. For instance, paying it into the loan and reborrowing or just using it straight up will have different consequences. Which you should do will depend on your plans

SMSF and property work well, especially borrowing at 80% LVR IO with a 100% offset account. Positive gearing is even better. It won't be long before you save up the next 20% deposit in the offset for the next one.

Don't trust your friend – who is just trying to sell you a property. Do your own homework to find the true value before you sign up

its best to set up your own excel spreadys because each person has taylored (esp Richard) their own spreadsheets to their own needs.

Also a good way to learn about property and tax – and excel.

very interesting, Rushcutters bay!

a few comments
Go and see a broker about your dad and his wife qualifying for the loan. Stamp duty would be payable on the transfer to your dad at market rates, but you could transfer it for whatever price you want.
Selling property for under market value can give rise to centrelink issues.
Your loan agreement will probably prohibit you…[Read more]

I don't think there are any differences in claiming depreciation on overseas property compared to Australian property. Don't think the location or which country the property is in would matter either.

But I have never looked into this.

You could use equity but what would have happened if I had borrowed $130,000 and then had to sell at $120,000? I would have had to find $10k cash.

Also the option buyers solicitor would recommend they lodge a caveat to protect their interest so it would be impossible to borrow in most cases.

Raj, you would just have to make a spreadsheet on the different scenarios and consider the figures.

Probably the sale to the spouse would be the way to go as it would be low cost to implement and you would be saving lots of tax so the costs would quickly come back in savings.