You should probably have a loan agreement with your parents and also look at taking a mortgage over their property. There may be a slight chance of bankrutpcy in the future and you may wish to protect your investment. On the other hand if you go bankrupt, then this will still be your asset so you need to consider it carefully and speak to a…[Read more]

see s118-145 Income Tax Assessment Act 2007You can rent your main residence out for up to 6 years and still have it exempt from CGT in some circumstances.

See the old TR95/25 Income tax: deductions for interest under section 8-1 of the Income Tax Assessment Act 1997 following FC of T v. Roberts; FC of T v. Smith http://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR9525/NAT/ATO%27&PiT=99991231235958see especially paragraph 42: Borrowing used to repay an existing loan 42. Interest on a new loan…[Read more]

Usually fixed loans don't have offsets available, although some banks offer them on 1 year fixed loans.

When you use a credit card you are really borrowing money. So this is a loan. When you pay from the LOC to the credit card you are just refinancing one loan with another.I imagine that as long as you only use the credit card for investment expenses then the interest should be deductible. If you start using the card for personal expenses then you…[Read more]

What happens when you have invested this money and then decide to buy another place to live in? You could end up with a high non deductible loan.

I worked with a guy once who rang about 20 shops to ask for their prices for a particular mobile phone. He shopped around and saved about $100. He later went out into business and paid the advertised price for a juice shop. He didn't even try to bargain them down. (later sold it at a massive loss).

You can't have 2 main residences exempt at the same time (except for a 6 month overlap provision if buying/selling)

propertyinfo wrote:
Interesting reading here, thanks everyone for their posts. I have an example here where I think it shows the advantage of an offset account:Me: 100 000 cash, no properties ownedBuy first house as holiday house (say 200,000 to buy), put 20,000 deposit, 80,000 in interest only offset account- – -2 years later- – -Buy second…[Read more]

DHCP wrote:

Qlds007 wrote:
I am sure DHCP 's Mortgage Choice Broker suits his requirements but remember they are a franchise and the level of competance will depend on the experience of the franchisee.

    It is a lot to do with the capacity of the applicant to service the loan…Banks won't lent you their money on the basis of your mort…[Read more]

I have recently been rereading some of the Kiyosaki books I have and I love the Cashflow Quadrant one. He has some great concepts and ways of explaining things.What he says is true. By his definition anything that puts money into your pocket is an asset. Anything that costs you money is a liability. A house costs you money so it would be a…[Read more]

If you sell you will be up for a lot of fees: agent, CGT, legals, loan discharges etcAnd then a lot of fees on the new purchase: stamp duty, legals, loan fees etc.I would suggest you do the sums and then get out your crystal ball and see if any extra growth in melbourne will make up for these fees.(and if any money left over invest in a dictionary??)

midgo wrote:
HelloWe lived in our old home for 22 years from 1986 to 2008.We moved into our new home then and it is now our PPR.Our old home is now rented out and is income earning.If we sell our old home some time this year 2011 will we have to pay any CGT or are we exempt under the 6 year rule.As we have nominated our new home as our PPR and…[Read more]

A bare trust is one where A owns for B. No discretion at all.

PaulI have a few books on options.Andrew Grey; lease option handbookRossiter; Principles of Land Contracts and Options in AustraliaFarrands, Donald: The Law of Options and Other Pre-emptive RightsI have another one called, I think, The Laws of Options in Australia, which I can't find.These are expensive books, but a hell of a lot cheaper than a…[Read more]

I agree with APerry. Trusts would not affect servicing. If you can afford in your name then you can afford the loan in the trust – nothing changes, same incomes are used.It may also be worth considering selling the IP and paying down personal debt. Do some sums.If buying in your own names and transferring to a trust later on = stamp duty + CGT +…[Read more]

The biggest advantage is that the banks only have their own products where as brokers will have many different lenders.

Sounds like it could be one of those expensive properties with an expensive loan so be careful. Don't trust them without doing your own independent research.Your explanation is confusing too – and doesn't make sense. How can you pay a loan repayment into a LOC? Maybe you mean pay the interest on the investment loan from your LOC? if so, this can…[Read more]

Also claim loan costs and travel  – to and from property, accountant, post office (maybe).

You could chose to claim an exemption in full, under s118-145 of the ITAA 1997http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html(but the new house will not be CGT exempt during this period)orapportion the gain over the period rented, s118-185http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html