I was going to suggest the benefits of living in it include keeping it CGT free when you rent it out – for up to 6 years. No need to move back in either, but if you moved in and out the exemption could continue for another 6 years.Also, the loan set up is good, but have you considered trying to get a 90 or even 95% LVR. LMI would be payable, but…[Read more]

Mike has sent me a PM saying there is a problem with the replies appearing with the quotes – which explains his silence.

Mike is perhaps inspired by the Dao De Jing:?????????Those that know do not speak, those that speak do not know

Kimberly wrote:
How about paying it down as much as possible now………..but not close the account. And when it's time to move to the new PPOR, remortgage this IP (the first PPOR) with interest only payments. Does that make sense?

Doesn't make sense because you will lost deductibility of the interest

MikeSomething happened to your post – it appears to be nothing but a quote of the opening post.

Unreal wrote:
They are REAs, you say you're interested and they find a block of land in their chosen city (atm it's Brissie).  They line you up with everything; builder, mortgage broker, everything.  By the time the house is build you've got a tenant…..I can't see any down side?

Paying too much?

In QLD I don't think you can transfer between spouses without stamp duty – unless main residence.But you could buy out your spouse's share. She would pay CGT and you stamp duty, but it would release funds which could be paid down on your non deductible debt and then you could borrow to buy her share and claim the interest and thereby increase tax…[Read more]

Think more long term too. How long will the property be running at a loss? after it is postive geared then you would be paying much more tax in your name. Also CGT.In NSW you cannot do a transfer like this without stamp duty – unless divorcing or dying.

With super there are different stages or phases – the accumulation phase up until 'retirement' and then the 'pension phase' once you meet certain criteria – usually age of 55+ but rising to 60. Another is if you have a serious disability or illness.The income of the fund is taxed differently in each phase.

Once you've paid off your personal debt you could start to pay off investment debts. But I think you would be better to use IO loans with offset accounts – unless you are tempted to spend.

That would be correct.But it is not tax effective. It is bad advice.

Cross securitisation is simply using 2 securities for the one loan.If you take a LOC out on an existing property you have only used 1 security for this loan so it won't be crossed, but there would be 2 loans on the one property security.However, if you have 2 properties with some equity in them and then you decide to get a big LOC and use these 2…[Read more]

You need to carefully consider succession planning. Super doesn't form part of your estate. Although you can direct that it goes into your estate.Make sure you have a company as trustee (90% don't apparently) and have binding death benefit nominations. Consider succession of the company as well as the trust and also consider the taxation…[Read more]

If you are not renting a house out then it can be CGT free for an indefinite period under s118-145But, this may not apply to one you are constructing because you could no longer claim it as a residence.

Yes, I was correcthttp://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.htmlI remember it because it is just before the absence from main residence section on 118-145

Ok, true about the claiming of the rent.Income the SMSF makes is not tax free. The rate is 15% for most income. eg. rent received by the SMSF is taxed.The SMSF also pays CGT. if it sells a building it pays CGT at the rate of 15% or 10% if held more than 12 months.Then there is the time when you are receiving a pension or a lump sum from the fund…[Read more]

Financial_Help wrote:
It is really important to pay all the debt before investing on property. If you do that you could easily get a lender and also help you to get a better loan for investing on property..;

Ridiculous advice from a spammer.

I meant with a broker too.Where are you located? I know an excellent accountant in Sydney. PM me for details.

Get a second opinion?

After 6 months one will have CGT applied to it. From memory it is s118-140 ITAA 1997.