You cannot claim costs such as stamp duty etc until you sell, but you could claim borrowing costs over 5 years as well as depreciation and all the usual costs – but only from the date the place is available for rent.

Those properties look like they are performing badly. Is there any prospects of capital growth? if not then it may be worth considering selling them and investing the money elsewhere where you can get a better return.

Why buy something you can get for free?

Yes, using IO keeps your options open and will save you the exact same amount of interest IF you use a 100% offset account and keep the same amount of money in there as you would have paid off the loan.The only time I wouldn't suggest a IO loan is for people who are tempted to spend any cash they save up, and this is a real and significant danger…[Read more]

Even if you don't have any private debt, there are at least two reasons why paying interest only on an investment loan is beneficial.1. Your money is locked away and cannot be taken back without tax consequences, and2. You end up paying more money per month so that means you cannot afford to invest this money elsewhere – the opportunity…[Read more]

The settlement date is usually listed or defined in the contract of sale. If you have already exchanged contracts then this date is fixed. If you are asking to vary it I would just get your solicitor to ring up the vendor's solicitor to chase it up.

I resisted buying one for a while, but have given in a got one and I must say the iphone is very good.

Just remember this:- pay off non deductible debt first.- interest is calculated daily, so reducing the interest payable on day 1 will have a compounding effect as you will be saving interest on interest from day 2 onwards and this saving will be exponential.so, – pay minimum on your investments because these loans are deductible.- Obtain the…[Read more]

PPR,You currently owe $170,000 on your PPOR mortgage. If you "max up" the loan to $500,000 that would mean you are borrowing an extra $330,000. The deductibility of the interest on this extra $330,000 will depend on what the funds are used for.I think you are confusing yourself about "swapping loans".eg If I borrow $10 to buy a book and $20 to buy…[Read more]

techamitdev wrote:
Hello Terry,Thank you for your time.Just a last question.Even if I am going to +ve gearing, should I still maintain this as as Interest Only (IO) loan?Best,Amit

Yes. otherwise you will be tying up your cash and won't be able to use it without tax consequences.eg what would happen if you paid your loan down by $50,000 and then…[Read more]

PPR remortgage wrote:

Terryw wrote:
Deductibility depends on the purpose and use of the funds borrowed. So if you borrowed $200,000 for an IP and that IP becomes a private residence then the interest on that $200,000 will no longer be deductible.What you could do is talk to a tax expert about setting up a LOC on your PPOR, in addition to your…[Read more]

Deductibility depends on the purpose and use of the funds borrowed. So if you borrowed $200,000 for an IP and that IP becomes a private residence then the interest on that $200,000 will no longer be deductible.What you could do is talk to a tax expert about setting up a LOC on your PPOR, in addition to your $170,000 loan, and then use this loan to…[Read more]

scotts wrote:
Terryw, Thank you, I'm happy to hear that my general understanding of what a trust can do is correct.Is there anyway for the trust to retain the profits after selling the properties and reinvest without distributing to beneficiaries or paying 45% (or whatever the highest tax rate is)?

I don't think trusts can retain income without…[Read more]

You can also keep your place exempt from CGT too by claiming the absent from main residence exemption for up to 6 years.

Pretty much on track, but.DFT is not a legal entity, It is only a relationship. It is the trustee that enters into contracts.John Smith could only act a guarantor if he was trustee, or director of trustee. There may be others required to give guarantees too.Smith can loan or gift money to the trust.Benefactors are usually called beneficiaries.A…[Read more]

Prepaying will bring your deductible expenses forward. If you have exceptionally large income this year then it may be wise, if not then next year you will have a problem of little deductions – unless you prepay the next years again

Just read an interesting article in SMHhttp://smh.domain.com.au/real-estate-news/come-in-and-feel-the-noise-landlords-to-pay-for-rowdy-tenants-20110506-1ec3g.htmlThe article is about tenant noise and some landlords allegedly renting out units to backpackers, but the article also mentions:"Landlords John and Sarah Hanna, who own more than 100…[Read more]

angelinsydney wrote:
Hi all,This is one example why we should all use the services of a solicitor (as opposed to conveyancer – sorry guys if there's a few here).  My long-time solicitor will not take this sort of c__p, he'd go to bat for me in an instant.  Good luck and I hope this gets resolved for you ASAP.Angel

I would have to agree with A…[Read more]

EVSounds like you have cross collateralised your properties. This is both dangerous and will be restrictive down the track. Best to untangle it asap before you get any bigger.

Under the standard contracts, in NSW anyway, you are only given a right of inspection once in the 3 days before settlement (going from memory here). Any additional inspections would be up to the vendor. If I was a vendor and you had not negaotiated this prior then I would not let you in, as there would be nothing to gain from it, and the…[Read more]