No. Buyer beware.

Income tax than still apply to the profits. The main residence exemption can only apply where the property is held on capital account. Where you are buying with the intention of selling for a profit this will be on revenue account and it will be taxed as income without the 50% CGT discount or the main residence exemption if you live in it.

Who told you that? They are confusing the 50% CGT discount with the main residence exemption.

The sale of the main residence could still be exempt from CGT if sold within 12 months.

Just send an email to the agent.

It seems the property has been sold for $250,000 more than purchased, but there are other costs that can be used to reduce the CGT – stamp duty, legals, agents fees etc. Let’s say this comes to $50k, that would make a gain of $200,000.

you could then apply the 50% CGT discount so this becomes $100,000. This is added to ‘your’ other income. So if…[Read more]

Lol, yes there are about 10 people on the waiting list atm. If interested could you please sign up here http://terryw.com.au/waiting-list/

Only tax agents or lawyers can provide tax advice. Redwood is a tax agent I believe.

Only tax agents or lawyers can provide tax advice. Redwood is a tax agent I believe.

1. Make sure you are really maxed out.

2. Do what you can to improve serviceability.

3. Related party loan.

4. Transfer small amount ownership to someone who will help with servicing.

Remember security for the loan doesn’t determine deductibility of interest. It is the use that counts.

Buying a property is not a taxable supply. Selling it may be.

Perhaps it is a breach of copyright or licence – you are paying for one off use.

It looks like a lease which is a legal document – a contract.

This is something to ask the person giving you credit advice. The bank will probably do nothing as you will have a 30 year loan term and probably have not committed any default.

Banks will need to stress test your ability to pay. They are probably using around 7 to 8% PI payments and basing your spending on standard indexes. Failure to do so would be a breach of the law – your brokers are probably breaking the law (NCCP) by suggesting a scheme to get around this.

Legal questions – a tax agent could answer question 2.

1. Obtaining a financial advantage by deception is a crime so banks would care if that is what you are doing.
2. Tax is based on what is done with the property and not what you have told to a bank.
3. Land tax is based on whether you reside in the property or not.

Consider buying a main residence borrowing 80% and then pay it Down asap while recycling debt by paying the loan off and redrawing to invest. Structure the loan splits to maximise flexibility in doing this.

How many years was it not the main residence? Sounds like 2 years so 2/12ths.

The period it wasn’t the main residence appears to be 1 year so 1/16

Hi Pete

No lender will lend more than the security for the loan, but it is still possible by borrowing secured on another property or unsecured such as a related party loan, eg. loan from parents.