I would imagine it would be like this:You have $10,000 in savings in the offset. You borrow $1000 and place in into the savings. total $11,000.Of this $11,000 only $1,000 is borrowings = 9%So when you take $1,000 out to pay the interest only 9% of this is borrowed funds. So only 9% of the interest on the $1,000 borrowed would be deductible. This…[Read more]

I think there are 2 issues here.1. The mixing of borrowed funds and savings = no full deduction.2. Capitalising interest = generally deductible if the underlying interest is deductible, but the ATO can still disallow it under Part IVA.If you want to go ahead:1. Change the loan structure. t make it more likely you will get a full deduction.eg split…[Read more]

Here is an analogy.Place 500ml of water into a jar.Now place 500ml of urine into the same jar.Then take out the 500ml of Urine.Would you drink the water?

So you will be borrowing money and investing it in a savings account and mixing it with savings. I would say the interest wouldn't be fully deductible. If you had no other funds in the offset then you could show the direct link and the funds would be uncontaminated.Even assuming there was no savings in the offset then ATO could disallow it if it…[Read more]

What about the $10k. Is that savings?

Sounds like a less than ideal setup.You will be mixing borrowings with savings.

Scott,What is the current version of the standard contract? I only have a 2005 version here, with cl 3 relating to vendor duty.

1. This is dangerous. Technically you would be borrowing money and placing it into a savings account. If you have no money in this offset account other than the borrowed money, then the ATO could allow it as the funds are traceable. But you are also borrowing to pay interest, and the ATO may not be so happy with this, although it is technically…[Read more]

You should be able to claim all the normal deductions if it is available for rent.

You can split the loans as you wish, but if you want to deduct the interest you should do so in a tax effective manner.Your current loan is $210,000. If you move out and rent this apartment then the interest on this should be deductible.But if you increase this loan to $400,000 you have to look at what use the extra $190,000 is put. It seems you…[Read more]

Its not in the vendor's interest to accept less than 10% deposit. If the purchaser doesn't settle they then have to go to the trouble to sue the seller and then extract the money – which they may not even have.

Hi ScottYep, many agents insist on getting a deposit large enough to cover their commissions, but really it would be up to the vendor to decide.Not sure about the rights of the agent being protected though. Did you have any particular clause in mind?

Hi SwampyThere is not reason to give them a bonus for selling for less than you want.If you want $520,000 then give them a bit more if they achieve this. If they get more than $530,00 then you will be happy so give them a higher percentage still.

Hi Colin,I don't think lease options fall under the NCCP as they are not defined as credit. So no licence needed,Installment contracts would be credit and you would need to be licenced – but even then if you had 2 years experience I don't think a cert IV is needed yet – but will be the minimum requirement in a couple of years. (just going from…[Read more]

Make sure you get a good hybrid too one with a private ruling.

Yes, hybrid trust.ATO has no problem with them if they are set up correctly.

excel?

This sounds like dangerous advice to me!

As long as they send items to your conveyancer it will be enough. The same as sending them to you.They should be acting in your interest and should be independent of the developer too.

But did your lawyer get a copy of the plan?