You have missed something. you the tenant would be able to claim a deduction for the rent of the premises from your SMSF. The income from the SMSF is taxable as is capital gains, but the tax rate is much lower than being held outside. CGT for eg is just 10% if the asset held more than 12 months. Income tax is generally 15%, but the fund will be…[Read more]

Cross securitisation is simply using 2 securities for the one loan. So if there is a default the lender can take possession of either property. It also ties you up and restricts your borrowing ability as outlined by Richard.There is no reason to cross.

Leverage as in discounts?Now leverage is not your problem. Finding a lender that you can fit in is. Lenders won't really let you muscle them into lending to you either. You either qualifty or you. If it is borderline then maybe.

Best to use a broker  think,Using different lenders will help a bit, but you will come to a time when you are maxed out. Increasing the rents and your wages will help but it can be a slow process.

1. too late. You have paid the money.2. Apply to the bank to release security or move banks by refinancing it and fixing at the same time.Since it is just a $25,000 shortfall to 80% LVR you may want to wait a bit for some growth and then refinance.

  You could elect to treat the flat as your main residence and claim the CGT exemption for 6 years and pay little to no tax. But this would mean your new house would be subject to CGT up until the flat was sold.   Or You could treat it as your main residence until 2008. This is going from main residence to investment property so a valuation…[Read more]

With 1, don't pay it off but use an IO loan with 100% offset. Paying it off will tie up your money and will result in more tax

Qlds007 wrote:
And dont take advice from friends down the pub who tell you "I think the ATO are investigating Trusts" or "My friend at the Bank recons managed funds is the way to go and he has a mate who can get you into the fund".These friends spend 40 years telling you all the reasons why you shouldnt take action and then on retirement want to…[Read more]

Just develop a plan and stick to it. When your mate comes over and tells you how he could make $1mil by investing in x – beware.

Just make sure you focus and don't get sidetracked from your plan.

Do both.Def any cash received should be paid off the home loan rather than straight into an investment – or into an offset and then borrow to invest, if you have enough equity.

hi JohannUsable equity would be [$410,000 x 80% (or 90% maybe) ]- existing loan.You should be able to pay out that $100,000 in less than 2 years.For the business have one person operating it only, to reduce risk, and further reduce risk by using a Pty Ltd company. The company can employ the other if need be, or have the shares owned by a DT so as…[Read more]

A discretionary trust is probably the way to go. Accountants and lawyers can set them up and you should use an expert because there are so many issues to consider.

You have some misconceptions regarding trusts.Trusts can claim depreciation and there are no tax issues – but this shouldn't be your major concern. They can be set up very quickly. There are no stamping issues with trusts in QLD (costs $500 stamp duty in NSW).With Tenants in Common you also need to remember what happens at death. (I am not talking…[Read more]

If starting a business asset protection should also be a major concern.

grantos_champos wrote:
Terry,What about if I renovate while it is PPOR then convert to IP down the track?

If the property is rented then you should be able to claim any interest on loans used to acquire or improve this property and any depreciation on the fixtures and fittigs of it – subject to effective life of the item.

Yes – can claim interest on the loan and Yes can claim depreciation

I can't process that info atm!!But if you or mum are wanting to buy something in your brother's name and then later change it to your mum's name it could be done with a bare trust. Stamp duty would vary from state to state but would be about $20 to change it over. No CGT issues either if done property as it would be considered your mum's house…[Read more]

what are you trying to achieve?

Catalyst wrote:
How can they apply for the loan in the son's name? Unless they are also on the loan? If the son is on the loan he is liable (not the parents).

Possibly both would have to be on the loan. legal owner would def.