Dave

You have repaid $60k. Taking it out will be new borrowings and deductibility will depend on what it is borrowed for.

2 loans is not much bargaining power, but you should be able to get a much better rate than this.

I think the requirement to get the FHOG is that you live in the property within the first 12 months. Don't think there are any restrictions on renting out part of it.

Consider asset protection now before doing anything. Which names on title, how it is funded, ways to protect your cash deposit etc.

Start planning ahead. Do you have other assets?

You shouldn't be holding large amounts of cash in your personal name. Too dangerous and tax disadvantages.

Consider gifting to a discretionary trust and borrowing back to purchase property.

Depends on the accountant.

What do you want to see them for? What do you want advise on? Structure? Names? Tax consequences of borrowing in one name and purchasing in 2 names?  Tax deductions?

A lot of this can be easily worked out yourself to get a general idea and then see the accountant for specific questions. They will probably be charging…[Read more]

If you were working overseas and earning in that currency that you are borrowing in then it is possible. eg. NAB Japan used to lend up to 70% for aussies working in Japan at around 2% secured by Australian property. many conditions though.

slowachiever wrote:
Hi folks ,
I have 3 properties , 2 owned outright and 1 repaying PI loan  and have been told before by a broker I should convert it all to
Line of Credit setups , before buying  any further  properties .
Just thought I would throw that into the ring .

Ian
Perth Western Australia 

Depending on the exact advice this may not…[Read more]

I don’t know if you would have a strong case based on those emails.

Even if you win you won’t get much back in terms of legal fees. There are caps on what you can claim. If you lose then you pay your own costs and part of his legal expenses.

Best to see a lawyer, but be skeptical of what they tell you.

how much did you spend?

Did he make any guarantees that your plans would be approved?

Are you willing to spend money on lawyers?

Prob about $200 just for a contract – plus disbursements such as title searches, council docs etc.

If partner very adverse to risk then one option is to set up separate SMSFs and to use your fund to purchase and to select a lender which does not require a personal guarantee. I dont' think you can really get safer than that.

Another option is to use a discretionary trust and to keep your partner out of giving guarantees or going on the loan…[Read more]

New residential too – first 5 years after becoming new.

Many trusts offer these same advantages.

For example to avoid vesting, just set up a company trustee and trust in South Australia. Wait 80 years and see if it works.

2. Yes, if you are using a proeprty as security the lender will take a mortgage over it.
2. Yes, the lenders will want to tie you up as much as possible.

Because of your ages you should consider using a SMSF to invest. This will enable future CGs and income to be tax free.

You may be able to set up a LOC and to onlend to your SMSF if you don't…[Read more]

Income tax and GST.

It would include the interest up to the day of settlement.

New means up to 5 years old. So if you construct and rent it for 4 years and then sell GST may still apply to the sale.

The substantially bit isn't defined in the GST Act, but there is an ATO ruling which outlines their view.

Yes.

GST generally applies to the sale of residential property if they are 'new' and this includes substantially renovated property.

But the developer will be able to claim GST paid out on materials.

They may also be able to use the margin scheme which will enable GST to be reduced by only charging it on a portion of the sale price.

eclz4 wrote:

 
I would have thought the balance of the loan would be $301K + the principal component of the Aug repayment + settlement fees as the $301K already have the Aug component.

 . 

No, it wouldn't include principle as as this th $301,000 that you are paying back. But it would include interest.