Yes I agree with the others, you can't transfer the debt from a tax point of view, but you could possible sell the property to your spouse who could borrow the lot to buy it. The loan would then be 100% deductible. Depending on the State it is in it may be stamp duty exempt (eg vic), but even if you have to pay stamp duty it may still be…[Read more]

What do you need to know?Depreciation is claimed by the owner of the property = the 'trust'. If you trust is running at a loss, which it probably will in the early years, then you cannot offset private income and will, ideally, need to direct other income into the trust to offset this.

Equity and loans are different. You are confusing the 2 i thinkIf you take money out of a loan or borrow more money then you pay interest. But a way around this is to only take the money when you need it. To do this you can set up a loan now, such as a LOC, and withdraw the money later when it is needed. You would then only pay interest from the…[Read more]

Its worth looking into as it can free up cash which can pay down non-deductible debt and this will save you tax long term which will hopefully make up for the stamp duty costs.

Double postingI have already posted herehttps://www.propertyinvesting.com/forums/property-investing/help-needed/4335239?#comment-227926

luke86 wrote:
If your trust provides services, then the assets held in the trust can be claimed should the trust b sued for any reason. This is generally not recommended for this asset protection reason.Why not set up a second trust that provides the services to provide better protection for your assets?Cheers,Luke

Or even a company as…[Read more]

Transfer = selling, so don't forget to factor in the stamp duty.

You cannot change ownership without paying stamp duty – generally, an exemption in some situations is for transfers between spouses.You could transfer half the house, or even less, such as 1% to get your name on title. you will only pay stamp duty on the value of the portion transferred. See if your bank is happy with this first though – get a…[Read more]

I odn't think there would be any tax issues as long as the LOC has a separate account number.

converting to a LOC is very dangerous. I would suggest you never start putting wages etc in and taking them out. It may work out ok if you are just capitalising the interest, I would have done it part IO with offset and part LOC.It is a good idea to start borrowing for the property as you plan but run it by your tax advisor first.

I would seriously look at selling and using the proceeds to pay off your PPOR loan. If the IP was your partners main residence at some stage it may be CGT exempt.

He is talking about CGT I think. You still have to pay these costs though.

maybe you are referring to the First Home Owner exemptions?

never heard of it.

Its cold on the extremities apparently.

I can't help with a solicitor in QLD – and they wouldn't do the calculations for you anyway. Just download a loan amortisation template for excel and you can do it in 5 secs.

Do you mean set it up?There are solicitors that can do all the contracts etc. What state is it in?

bfchong wrote:
Hi there, I'm new to this forum but am hoping to seek advise.Intend to purchase an investment property with both my wife & my name on the land title.For the bank loan, we intend to borrow only under my name (negative gearing purpose) with my wife as guarantor (bank's condition). Is this option viable? Will it create any issue…[Read more]

Never use redraw. It is more dangerous than nude skydiving.Just remember that money taken out out redraw is the same as borrowing new money. interest on new borrowings will only be deductible if it is used for investment purposes.Using an offset account avoids this by saving you the same interest and not paying down the loan.

Be careful – sounds messy and you can get yourself into a tax mess if you don't understand.Don't increase any loans now for the car etc as this portion will not be deductible. If you need to do that then make a separate split. Also do the conversion to IO asap and stop paying down the loan.For tax just remember than any money taken from redraw =…[Read more]