Consider asset protection first. Consider gifting the money to your discretionary trust. You can then borrow it from the DT and do with it as you please. It could be borrowed interest free too. Doing this will assist with protection if you were to go down bankrupt in the future, possible protection against family law issues (slight) and possible…[Read more]

I am a former broker turned solicitor but I am now thinking about getting back into broking to work it in with my law work ( I like estate planning and structures etc). There are so many regulations with broking now it is amazing. Even rules on how you need to back up your computer files. In the good old days we just wrote the loan and faxed it…[Read more]

Yes it would be possible.But, if your parents are the owners then they would get all the deductions and CGT on market value when it is transferred to you. Stamp duty would also be at market rates.You could get your dad buy it in his name as trustee for you. Later you could transfer for $50 stamp duty and no CGT, but he couldn't claim the…[Read more]

Josh,It would be possible to split the loan into 2 so Henry could have one for the land and one for the construction. I dont' really think there is any benefit to this though.I was wondering about the stamp duty too. Maybe the builder is paying it by including it in the price of the land.Henry, good way to learn things isn't it!

If you only want to live in it 6 months and then rent it then it would be an investment loan

Of course it is legal to have someone pay you rent for your PPOR. Whether you can still get the FHOG is a different matter, but without looking into it I would think it could be possible if you are still living there for at least 6 months.Tax is a separate issue to consider and you would lose the CGT exemption on part of the property possibly

First take some legal advice. There are a number of strategies you can do to protect the money and some strategies for future tax savings. You can still have access to the money too.

Property in Japan generally goes down in value.After 20-30 years you would need to rebuild too. the construction there is different and not as sturdy as Australia.Where abouts are you looking at?I am going to Osaka in a couple of weeks.

IanWhat do you mean depreciation? Depreciation should change with the location of the investor. But I agree it would be great to live and work in Japan and buy in Australia with a loan in Yen. you would be looking at interest rates of around 2% pa

Sounds like you are doing it wrong.Having the loans in 2 names is doubling the risk without providing any benefit. It may not be possible for your wife to get the loan in her own name, for the LOC I mean, if she has no income, in that case it may be unavoidable. But if your wife has income then she should get the loan and on-lend the LOC money to…[Read more]

Yes I am from NSW, but am a lawyer now (though i miss broking!). I think Michael here is a broker from Sydney.

Li – you send me a message somehow, but you are not set up to receive replies.

But when you take the $79k out the interest on your loan goes up. You need to factor this in as the $79k is borrowings.You also need to be very careful about how you take the $79k out.

Ah, so the $79k is really borrowings!Make sure you don't actually withdraw that money and place it in a savings account, or the interest on it may not be deductible. Take it straight from the loan and pay it.

What are the chances of you going back to live in your PPOR or to buy another?I am asking this as if you use your cash for the investment properties then you will have less left over for the private expense of your ow home and therefore will be paying more interest which will not be deductible.Does your old PPOR have any equity which you could use…[Read more]

Yes, under s118-145 ITAA 1997 it may be possible

HenryThis is all confusing. Do you have another property? From the above post it seems that your new property will be stand alone, and not cross collateralised, which is good (and probably what they mean by firewalling). But you haven't taken into account LMI.The LMI on a 95% loan will be huge. It may be included into the loan, ie capitalised so…[Read more]

Looks like your loans may be cross collateralised.The conveyancing fee is not cheap. Extra valuation fee -probably because they are valuing your other property to use it as security.

Capitalising into the loan doesn't make a fee deductible, but it would make interest on the fee could be deductible.

Why not talk to one of the mortgage brokers that post here first?