Taking money out of a redraw is considered new borrowings. So I agree with amie.Only the interest on the $15k would be deductible.

lend her some money? or encourage her to pay more than the interest each month. if she cannot efford to then she will have to sell eventually

Yes, tax is much differentChildren can only earn a few hundred from passive income before they get hit with penalty tax.Children can get access to adult rates if they are physically working however.

You misunderstand 'beneficiary' of a trust. No work involved at all for a child.If your company wants to employ one of your children then that is a separate issue. You have to watch out for employing under 18s.If you and wife both work for the same company then it is the company that employs people. If you work in separate companies then either or…[Read more]

No, I was assuming the children were not working. But they could be employed by the business company.I was referring to them being beneficiaries of the trust that owned the property. (a company should not own property because of tax reasons).Incidently if both you and your wife owned a house each and used them as the main residence then only one…[Read more]

A business is just a concept not a legal entity or a structure. Only a legal person can own a property. So you would have a company or an individual own the property. The company or individual could be owner as trustee or in their own right.You would generally not run any business from the same company or in your own name, for asset protection…[Read more]

You have to look at the terms of your contract.Generally they cannot pull out. But if you have breached some terms then they may have a way out.

Great strategy if you have the cashflow to support it.

Check with your tax advisor.But, as long as your are payng the interest each month then you should be able to keep borrowing to pay investment expenses. Put all rents and incomes in the offset on your home loan and only start to pay down the investment loans after you have no more non deductible expenses.

wobblysquare wrote:
My understanding is that it is 6 years…although maybe I am confusing this with PPOR CGT exemption. However i also think it is not necessarily limited to this. ATO have, on occasion, still asked for GST on developments sold after this period.

Wobshttp://www.austlii.edu.au/au/legis/cth/consol_act/antsasta1999402/s40.75.html5…[Read more]

I have been in Japan for a few weeks now and first lived here in 1990. Prices in generaly have not risen since 1990 and some things have gotten cheaper. There is a problem with deflation and widespread economic pessimisim. I don't see things improving in the near future. Not the place to be investing in I think.

Why not borrow to pay investment expenses?

Christian,5 years is a long time! You would be better off in some sense, but also could be better off in selling and doing another project (or 2) in the meantime.

Yes, 5 years I believe.

One is a sale the other is an option to buy

I don't know the first thing about US property, you would need a lawyer over in the US if purchasing there.You could try Morrows Legal in Melbourne. http://www.morrows.com.au

I am sure Paul will post here shortly, but You may need to be licenced to sell under an installment contract. This won't free up borrowing capacity as you will still be the legal owner and have your loan in place until settlement.1. depends on the contract2. depends on the contract. The buyer may need to be compensated if you terminate though.3.…[Read more]

Your missing something Sundance.If you default the lender can automatically take any security property.If you had them separate it would be much harder and longer for them to get their hands on non security property. You would give you more time to get back on track or to sell etc.If they are crossed and you try to sell one this will mean the bank…[Read more]

Yes, you don't know what you don't know do you.Same with all areas of life.

So a tenant wants compensation because they damaged their own car on a drve way that you don't own?Why are you trying to contact the previous agent?Just tell the tenants you are not responsible and won't be providing compensation