yes there is.1Profit = Income – expensesIf this is negative then you are negative cashflow before tax and you would be negatively geared.2Profit = Income – expenses – non cash expenses.(non cash = things you don't pay for directly, but can claim such as depreciation and loan costs) If this figure is negative then you are negatively geared.You…[Read more]

I just got an email from Bankwest, they have dropped fixed rates2 year special 5.99% pa

Don't forget NAB is still one of the lowest rates and they dropped their rates more than the other banks last time.

You will need to know the income and then deduct all the expenses. This will give you the profit or loss. This is added to your other taxable income. If amount back will also depend on how much you had paid in tax as well. You may be paying slightly more in each pay period so at the end of the year the return looks bigger than it otherwise would be.

I haven't done the calcs and wasn't even referring about rate etc. Just that this is an option.Also if considering fixing have you considered the RBA could drop rates again within a year?

Nope, doesn't make sense!Will need to know the income and costs of your property and ROI is return on investment so will need to know how much money you put into it.

What about staying as is and just paying  extra off each week via direct salary deposit?

or, you can get me at this one. Terry@loan-experts.com.au

I have some exams for a masters degree over the next week, but can catch up after that. Can you send me a PM or email via the forum. I don't want to put my email on here in public.

City – sydney CBD

I am a lawyer and do a bit of property – but prefer structures and estate planning (pre and post death)

Dont forget land tax can be minimised by buying in different states. And buying after 31 Dec – off the top of my head I think it is settlement that counts.

I agree. The Fin advisor will probably tell you to sell your house and put it into managed funds (commissions stay till June next  year I think).That sort of advice should take 10 min and could be answered on the spot.

There are some other differences in terms of costs.More for legal advice and taxation advice and tax returns. Prob not much more if you are just buying a few properties.The major added cost is the fact that any loss incurred by the trust cannot be used to offset your personal income.I think a discretionary trust makes sense, especially if postive…[Read more]

Tim,You are right. Everyone should get tax advice from a lawyer and/or accountant.But have a look at ATO ID 2001/79 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID200179/00001 Issue  Whether interest on funds borrowed to acquire the share of the taxpayer's spouse (the spouse) in a property, to be kept for investment purposes is deductible. De…[Read more]

No it is not possible.A SMSF is prohibited from acquiring an asset from a related party. There is an exception of "business real property' but residential will not qualify.You couldn't even sell to a unit trust or to a mate and then resell it (not that you would with the stamp duty) because the anti avoidance provisions will capture this.

No. But that is a good idea too. You should consider life insuranceYou need to hold the asset in the low risk name so if the high risk person goes bankrupt there is less chance of losing the house.This all comes in the planning on how you operate the system.

Yeah, I think you should get one in personal names to take advantage of the CGT and land tax exemptions. But, if you have a spouse it is best to get it in the name of the lower risk spouse. make an asset protection plan on how to pay for this one – ie don't contribute to it!Make sure the spouse has a will and that the will has an asset protection…[Read more]

The bank has a duty to the owner to get the best price possible for them or they could be held liable. Therefore they will want 'market value'. This is usally achieved by going to auction – which is properly advertsied and held.Also, if the property has been repossessed then they would have been considerably behind in their loan, add on the…[Read more]

Land tax is a State tax administered by the State Revenue Office in NSW. They use the values decided by some system – forget the details. SRO will notify you once you have to pay land tax. Also remember it is one threshold per person.With a fixed trust you could get the threshold – if it is properly set up. Not all unit trusts are fixed trusts.