No it applies for the life of the loan.   

Property A = InvestmentProperty B = Future PPORProperty A has 2 loans against it.Loan 1 = $150,000Loan 2 – $58,000Assuming loan 1 is associated with the purchase of the property the interest on this loan will probably be deductible.But loan 2 was borrowed to pay into PPOR. So the interest on this loan is not deductible – actually it may be now…[Read more]

how much is the loan on the house you want to move into?

Only a portion of the interest may possibily be deductible.Can u give a description with amounts of what happened/?

Yes there could be tax issues.Sounds like you have refinanced part of one loan with part of another. Mixed loans will become mixed purpose loans once you move into 1 of them so there will be tax issues.

Sounds like you have set up the loan in a less than ideal fashion.If you are going to rent the place out then I suggest you look at not paying the loan down and instead change to an IO loan with a 100% offset account.The reno loan could be consolidated into the main loan as long as none of it was used for non property related expenses there will…[Read more]

What is the ownership structure of the investment property and which state is it in?

Hi DucksterAn option contract would not cost $8800. That is extremely on the high side! Maybe you put an extra 0 in by mistake.

You cannot claim a main residence exemption unless you live there first.But if you are a defacto couple and your spouse lives there that would probably qualify for extablishing it as your main residence as long as you or her are not claiming any other property as your main residence at the same time.Seek tax advice first.

sniffer wrote:
i think what is being asked is    how can i reset the 6 year clock??  

Move in again as your main residence.

I don't know if that is correct v8. Bank fees – I assume monthly or yearly fees – these wouldn't be a borrowing expense but a general running expense such as rates, insurance etc. I am not sure where on the form you claim them, but it would be the same as rates.

You must actually move in to reset the clock and you may need good evidence to prove this if challenged or audited. There is no minimum time period in the legislation either.If you rent it to tenants and they move out and you wait 2 months then move in it would only be your main residence from that 2 month period. This is unless you had lived…[Read more]

I am confused by your confusion.Basically you could rent your main residence out for 6 years and avoid GSTor you can leave it empty until your death (and not rent it) and it could still be free of GST.

You do need equity to set up a LOC. Max LVR is around 80% usually, some 90%So if you had a property valued at $100,000 and a loan of $90,000 you could not get a LOC.But if you had a $50,000 loan then you could get a $30,000 or a $40,000 LOC depending on the bank etc.A LOC is new borrowings, but undrawn initially.

You seem to have started 2 threads on this topic.See my replies herehttps://www.propertyinvesting.com/forums/getting-technical/finance/4345094(you aren't associated with this business are you??)

You claim them in the year they are incurred.If you mean where on the forms it would be on the investment property schedule.

Hayate69 wrote:

Terryw wrote:
If they are the lender then they would actually be the mortgage manager, This would mean the loan is mortgage insured no matter what the LVR. This may not be a concern but if you are aiming for multiple properties it could restrict you.Rates will depend on the size of the loan some majors around 5.85%Also you…[Read more]

Hayate69 wrote:

Terryw wrote:
If it is a separate loan, the loc, then that is good. You must have equity to do this thenGood that they have a license too.But who is the lender? 6.6% is very high at the moment. I hope the main loan isn't a LOC.Not sure about the fees being deductible up front. Seek your own tax advice.

You mentioned you need…[Read more]

Hayate69 wrote:
There is no redraw against equity for the LOC in the investment property, which is great!

I am not sure what you mean here?

If they are the lender then they would actually be the mortgage manager, This would mean the loan is mortgage insured no matter what the LVR. This may not be a concern but if you are aiming for multiple properties it could restrict you.Rates will depend on the size of the loan some majors around 5.85%Also you could do this on your own too.