benofbrisbane wrote:
minor correctionit doesn't sound to me like you are a developer and therefore you do not have remit GST on the sale.  From what you have described it seems like an isolated transaction and not an 'enterprise' accordingly gst would be  Neither charged or remitted to the ATO in the event of a sale.  You should competent ac…[Read more]

Why would you want 20 offset accounts?Imagine the administrative hassles of filing all the statements.I don't think it has sunk in on how they work yet

tlp wrote:

Jamie M wrote:
Or just set it-up as a second IO split on the variable product. If it's set-up as a second facility you'll be able to easliy identify the deductable debt from the non-deductable.

Hi, currently going through the same process as well and for the lower interest rate I am leaning to this option over a LOC. Question…[Read more]

propertyjockey wrote:
Guys,Now I am confused If the answer is c – One for all 20 IP's then how does one account with a particular bank attribute an offset amount to a range of IP loans of different amounts with different lenders?PJ

I think you misunderstand how offsets work. One offset account only works against one loan. So the money in…[Read more]

propertyjockey wrote:
Guys,Now I am confused.I understand an offset account works to minimise the repayments towards the loan it is attached to up to the value of the IP loan.If I had 20 IP's with a number of different loan amounts with different banks and credit societies, How many offset accounts would I have to minimise the interest payments…[Read more]

blubarb19 wrote:
By the way, Terryw, though it is true the purchaser pays the GST and the vendor remits it to the ATO the practicalities seem to be the opposite. For example, if a block of land is valued by agents at $300k to achieve a sale and the price set by other land sales in the area (land sold as sub-divisions from PPOR land) then your…[Read more]

tlp wrote:

Terryw wrote:
Do you understand, from a tax POV,  you can't simply redraw the $50k and make your loan $100,000 with the $50k in the offset

That would be assuming they are refering to IP…. If the redraw is from PPOR then no tax implications I would say.TLP 

True – I was thinking the person may want to redraw to increase the loa…[Read more]

Ash7261 wrote:
Cheers Terryw, And as for the time frame. Is 6 months standard or could I ask for longer? Say 1yr or 2yr?

Why not! I don't think there is any standard. Its all up to your imagination and negotiating skills.

AusVietGuy wrote:
Hi Terryw Please check our website thanks

I did and that is why I asked.

Ash7261 wrote:
Hey guys, I've found a block I want to put an option on. They are asking $350k – $380k for it. What is the best way to go about asking for the option? How much should I offer to for the option etc? I want the block but funds are tired up with other properties at present. Is this the best way to go about it? Advice please.

Its up…[Read more]

Also, I don't think it wise to have 20 properties in one trust – don't keep all your eggs in the one basket.

I would think it won't become your main residence until you move in. So any growth in value during this time may be subject to CGT – but how much do you expect it to grow in 4 months?

Doesn't sound too good to me. For starters, you will be up for CGT and stamp duty to put them on title. You will also complicate things to no end.  What if one of them goes bankrupt or there is a family law claim? What happens at death  ( and I am not talking about rebirth or heaven – but challenges to the will, succession etc)There is also the r…[Read more]

I've purchased 2 cars on credit cards. Firstly, you don't want to pay the fee – naturally. So don't mention it to the sales person. Go in there and negotiate. Tell them you can pay in full straight away. When it comes down to paying just hand over the card. They will protest and say you need to pay the fee and you say, no that is ok I will come…[Read more]

Yes

Thanks Richard.

You could ask for director's guarantees, but whether they agree or not is a different matter. It would be expected of a small company, but not larger ones.

I would suggest you look at selling the IP. Do the sums. You may have to pay CGT, but this will be small and releasing equity would allow you to pay down your PPOR loan and saving you heaps of non deductible interest.You can then get back on track quickly and then reborrow some money on the PPOR with a LOC and purchase a new investment. Net result…[Read more]

Catalyst wrote:
First stop paying down the principal. Keep putting extra into the offset account. That way it's your money to do with it what you want. You don't need to put your home on the line to invest. You have at least $50K. Paying down your mortgage will give you a sound sleep but will not move you any further on the investment path. You…[Read more]

Trusts don't pay tax (usually) what would happen, if it is discretionary, is the profit of $70,000 would be distributed to beneficiaries of the trust by the trustee. The money is then income/capital gains in the hands of the beneficiaries and they pay tax on it. Usually this is done with tax efficiency in mind with the low income earners of the…[Read more]