Ah,, I missed that important bit. If there is no loan then there is not interest to deduct!

I did one loan years ago to a unit trust. The daughter had bad credit, so set up a unit trust with mum as trustee, daughter sole unit holder. It got through without them checking.But I think generally they would require personal guarantees from the unit holders as well as the directors of the trustee.So, who are the unit holders? ie who is the…[Read more]

You can certainly turn the PPOR into an IP, the interest on the existing loan should be deductible, but not on any further borrowings.Did your FA advice otherwise?

Who is the borrower?If it is the trustee with the aim to redeem the units then maybe. But if it is any other way then I think not as the unit holders would generally be required to give personal guarantes.

Just try from a small limit and you will find it easy. They will also keep sending you letters offering to up the limit every 6 months. I had a cc with a $60,000 limit, but recently ditched it. I now use mainly a debit card from ING – it only works on your own money. No fees etc either

I would agree with Colin.Both are private expenses so you cannot claim any interest which means you should generally pay the highest interest loan first.Change the scenario a bit. you have 2 credit cards, one high interest, one low – which would you pay first?If the car loan was deductible, then you would generally pay down the house first as you…[Read more]

I recall reading a VIC case about 3 years ago re a FHOG audit and the person was required to pay back the grant and copped a fine. This was based on electricity usage.Colin,  probably no breach of Privacy Act as it relates in an investigation.

Yes, financially you would be better off by renting out your unit and renting the one next door. But this would be dependant on the loan amount etcThis is because if your property is negative geared then you can claim any loss against your income and will save tax.BTW, it is still possible to rent out your home and have it CGT exempt too.

There is a risk that you will release your 10% and the vendor ends up losing the deposit and goes under and does not complete this sale.I would suggest you speak to your solicitor about removing this clause.

RayIf you are building yourself the lenders would probably consider you an owner builder, even if you are licenced.I would imagine the mortgage insurers probably would not accept this arrangement and you would need to contribute 20% at least. that is 20% of the land costs and 20% of the costs of construction. You would have to pay your 20% upfront…[Read more]

Henry,From your initial post I thought there was 1 fee, but it appears there are acutally 2?$880 joining fee and a $8700 fee. Is that correct?

Advantage = separate legal entity Limited liability.Disadvantages = no 50% CGT discount, possibly more land tax, high and more complex accounting, Corporations Act laws and ASIC oversight.Why not look at using a discretionary trust (which also have disadantages, but some sig advantages as well)

Whats it for?Deductibility will depend on to what extend it is a fee for the acquisition of a capital item.

Henry Adams wrote:

Derek wrote:
Hi Henry,On limited information supplied some of the following may not be relevant.Coomera is one of those new release suburbs (has been for a while) and with more land to come. AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and…[Read more]

Why not?High yields with good CG potential. At prices like that they would have to go up. Just get landlords insurances!

Sorry Crusty, don't know much at all about farming or the tax and stamp duty concessions. But it sounds like there are a lot of concessions available. The above was just copied and pasted from Adelaide Bank

There is no minimum time listed in the legislation.

nope. You could only get the exemption on the one you live in.

Henry Adams wrote:
Michael, thanks for the reply, "95% LVR is very common these days; especially if your a existing client of the bank." –> so that means we will be using semi fire-walling method ?

Henry, what is a "semi fire-walling method"?

Henry Adams wrote:
Yeah, I also signed up already with JDL recently after paying $880, and now their investment strategy is to get a property in COOMERA for $435k while charging me once off $8700 When I ask them about how can I gain profits if they charged me $8700 in front ? their answer is by hoping that the building depreciation can give you…[Read more]