See section 118-145 ITAA 1997This state you can still claim your property as your main residence, under certain conditions, even if you are absent for a period of up to 6 years. The actual wording under subsection 2 is "the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years."…[Read more]

I am a lawyer and wouldn't even do my own conveyancing in another state. proceedures and laws can be very different between the states – especially in stamp duty.

BTW, what state is the property in?

Sounds risky to me. Why not get some legal advice before doing all this? Will be cheaper than losing 0.25%.One thing you could do is to extend the cooling off period.

That rate is a bit high – how much is the loan amount?Would be best for you to pay the min on the investment loan and any excess to the PPOR loan – so this means monthly, otherwise you would be making an extra month's payment to the IP each year.If your PPOR would become an IP in the future then probably best from a tax POV to change it to IO, but…[Read more]

You are losing tax deductions by paying more into the investment loan. This means you will be paying more interest on your PPOR debt which isn't deductible = losing money, although probably not much.What is the rate on the LOC? They are often higher.A LOC can be used like a IO loan. Just make sure you never deposit anything into the loan other…[Read more]

It may be worth considering borowing more on the IP and keeping the cash for the car. IP loan would be deductible and lower interest rate than a car loan – which may not be deductible or fully deductible.And, try to get a cheapy and make your money work for you.

pauln wrote:
That's what the bank recommended as they were both previsouly P&I.

Do you mean the bank recommended the loans be set up as LOC?This worries me.And why are you paying fornightly?

Another terrorism incident in bangkok last week too!

JacM wrote:
Check that your loan offer from the bank allows a 90 day settlement. 

Very good point – usually tey don't extend that far

You would be related parties – so can a smsf sell to a related party? I am not sure off hte top of my head. A SMSF cannot acquire but don't know about sell.

Possibly a unit trust and a SMSF could buy a property as joint tenants.But a SMSF could not buy units in a unit trust if it was a related party. These would be deemd in-house assets – actually a SMSF could prbbably invest up to 5% of its value in an in-house asset.But there would be further restrictions such as the unit trust would be unable to…[Read more]

cyberman wrote:
lets say if I get together with say 5 friends with the view to buy Investment properties…should I still set up a syndicate through a solicitor  or should we just purchase properties as Tenants in common?

It would be a very good idea to get some advice first. 

It could be CGT free if that is the case – but then the new one would be subject to CGT.

Sounds like you don't understand the concept of deductiblity of interest. This is determined on what hte borrowed funds are used for. So if you borrow against your old IP (eg LOC) and use this to pay down the new PPOR loan the purpose of the borrowings would be private and therefore the interest could't be deducted.If A and B jointly own a…[Read more]

If you moved out of hte PPOR then the portion of the loan that you could attribute to the money that was used to purchase the PPOR may be deductibe – or the interest on this portion would. Any interest on any money you have ever redrawn from this loan would only be deductible if it was used to invest.

You cannot change a purpose after it has happened.Ideally you would have used a 100% offset account and IO loan when purchasing the old PPOR and this would have saved you thousands in tax when you purchased the new one.To fix/improve things now you could sell the old PPOR or if jointly owned sell/buy the other half and borrow to do so. CGT may be…[Read more]

I think the stamp duty rules will vary for each state so legal advice should be sought before signing any contract. This should be done for any property purchase but even more so for a SMSF purchase.

Also, you have to consider the minimum loan sizes. I have seen some SMSF lenders have a min of $200,000

Yes a valuation would be neededs 118-192 ITAA 1997    http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.htmlDebt is not taken into account when calculating CGT. So what you do with borrowings etc is not relevant for CGT  – but it could be relevant for income tax purposes.