itsandrew wrote:
Hi guys,When accessing equity in one property as deposit for other IP's is there a problem using just one LOC to fund the deposit for multiple IP's? Or should you take several loans, one for each new property?Regards,Andrew

HI AndrewGenerally no issue with using one LOC. As long as all interest is deductible you can just…[Read more]

You need a decent broker, but may also need tax advice.eg. If you are planning on moving out and renting that place you may want advice on using the LOC to pay the loan and costs on the current PPOR while building up cash reserves in a offset account.

Lisa,

I spoke to my tax man and he said there is not much they can do. Just try to obtain a valuation for as high as possible for the 5 acre portion surrounding the house as this would be exempt from CGT/

LOC = Line of credit.They generally have slightly higer rates but not always. You may also be able to use a normal IO loan too – ideally one with free redraw.

There is really only one way to reduce a loan and that is to get more money into it. Using an offset account will help too as your money sitting there saves interest

You could have foreign beneficiaries. Nothing wrong with that, Just consider the tax consequence as non residents pay higher taxes.The overseas trust could loan or gift to Australian trust. No real tax consequences on gifts. If a loan and you want to pay interest there will be tax issues. The trustee may have to withhold tax or the interest may…[Read more]

MRW wrote:
"I would put all the money on the house and personal debts (and avoid the wedding! sorry!)."That's interesting. We've just bought a new PPOR and lets just say we have a lot still owing. We have approx $100,000 sitting in an offset account that we were eventually going to use to buy another IP. Should we be putting it on the PPOR…[Read more]

Yes, the house and adjacent land up to 2 hectares would be exempt. So perhaps try to estimate the value of that and the value of the whole property and then work more acrurately what the CG will be. From there you can plan your strategy.I will speak to my accountant tomorrow about another matter and mention it to him.When do you think your parents…[Read more]

LisaYou should get a professional,. I have a guy, ex ATO of 26 years. I will ask him if he could help.Wiht a trust I was thinking you could sell at market values now quickly before the value increases and then you would have the trust sell later for a higher amount. But this may not be worth it unless there is a large increase in value.Is the…[Read more]

The laws around international tax are complex, and I haven't looked into them in any detail.My understanding is that the ATO wants to tax you on your worldwide income, so they ask and want to know your world wide income. Using a company to hold your assets overseas may mean this is still required to be reported – I think there is a question about…[Read more]

If you have enough equity in another property, then you could port the loan over to that one. But I can't see the point.You pay interest on the outstanding amount of a loan. So why not pay out the old one and take a new one when needed? It will be a lot of mucking around and the only benefits that I can think about are the savings in exit fees,…[Read more]

What is the security for the loan?

I would put all the money on the house and personal debts (and avoid the wedding! sorry!).This will reduce non deductible interest. Then reborrow and invest.

hi LisaYou need to get expert advice on this considering the sums. Use someone good.I am not sure there is much you could do, but there may be something involving small business concessions or farming relating.If you property has more than 1 title you may be able to sell in separate tax years too. Or you may be able to sell to a trust now, one…[Read more]

Well, there is no way that I know of to minimise stamp duty on a transfer like this – other than to get a valuer and tell him the situation and ask for a valuation as low as possible. However this may only save you a few hundred.

Mum would pay CGT on the profit on her half of the house. You can pay under market rents but this will limit her ability to claim deductions.

I would do one per trust – but the costs start to add up $500 stamp duty on each trust is NSW now!Sounds like you are unsure how trusts work. The company will be the trustee and legal owner of the property. You wouldn't transfer properties into a trust later on, but do it from the beginning. Otherwise you would pay CGT and stamp duty on the…[Read more]

I would look at doing both.Buy your house for cash live in it, get the FHOG and CGT exemptions, and immediately set up a LOC on it and then buy an investment.

edskii wrote:
Hi all, First post here so please take it easy on me. Here's the scenario, brother and I are looking at doing a straight swap his for mine. what's the best way to minimize the stamp duty? Do we have to transfer the houses at market value? Say if we were to transfer the houses under market value in order to minimize the stamp…[Read more]

You would just settle $10 usually. Otherwise you would pay stamp duty on the whole amount settled.