do some research

discretionary trust?

pauls05 wrote:
Hi there Me and my ex partner split 6 months ago, she decided to stop paying the mortgage while the place was up for sale, since then the property hasn't sold I have been paying for all expenses and trying to "buy her out" or take over her interest in the loan. I havnt been able to get an answer as to how the process works I…[Read more]

It could possibly be CGT free for up to 6 years of your absence.

Now your thinking

The trouble with owning a property jointly with another is that when you want to use the equity she will have to agree and participate in the loan. The same with the opposite situation if the sister wanted to borrow you would be required to be on the loan or to guarantee the loan. This would mean you would be both assessed as borrowing the full…[Read more]

Jamie posted while I was writing but we have said the exact same thing! great minds think alike!

I am not an accountant but would think that any borrowings you incur now in relation to the property should be deductible (interest  mean) once the house is available for rent.

If you used all your equity to buy cashflow properties without growth then it would be impossible to go forward unless you could save the next deposits.

George,If you have ever deposited money in the LOC and withdrawn it for personal expenses then your loan will be contaminated. If you keep on doing this you could end up with a large loan with none of the interest deductible.However, if you are just using the LOC like an IO loan and then also paying for expenses for the property with the cheque…[Read more]

If CGT applies and you have held the asset longer than 12 months then the CG can be reduced by 50%.

In Vic transfers between spouses can be stamp duty exempt. But if you are no longer spouses then this may not apply.But there will be provision for exemption from duty for a transfer as a result of a break up of a relationship. But to get this the commissioner of duties may need to be satisfied that it is a break up, unless you have a binding…[Read more]

Also, you should be taking IO so that you could be paying off your PPOR faster. Or if you don't have one so that you can save up for one faster.Once you have paid off your PPOR you can then start paying down debt on the investment properties as well. (or save into an offset and then have the choice of buying more or paying off loans)

Henry Adams wrote:
, so does this means the only way to pay it off is to make sure that the IP is always double in value every 10 years ?

Imagine you had purchased a house in Sydney 30 years ago for about $30,000 and you had only ever used an IO loan. You would still owe $30,000 today.Now what would you expect to pay in rent for a Sydney…[Read more]

100% of borrowings for the new property. 20% from LOC and 80% from new IO loan.

I think many are. I have seen a few bankrupted because of over borrowings.

see s118.145 ITAA 1997. A temporary absence from your main residence may not trigger CGT.I think he is wrong about the depreciation bit. Ask him for authority to back up his claim.All expenses for the property are added up and then deducted from the rent. This income or loss is then added to your other income for the year

For the amount of work and risk involved I would think $600 is extremely cheap.

If you don't like it then don't use their services.I am a solicitor and have charged $8,000 for conveyancing for one guy as I billed by the hour.There are guys down chinatown doing it for $500 if you want.

This is how I would do it.Value x 80% = X                           e.g $300,000 x 80% = $240,000X – Existing loan = LOC limit         eg. $240,0000 – $150,000 = $90,000 LOCSet up the LOC on this property and only use that LOC for deposits and costs for the next property.Buy $300,000 property. Get a 90% IO loan of $270,000 and take $30,000 from th…[Read more]