There are no secrets or special ways you can get around it. you need to put in your own cash or borrow 90% and pay LMI.

I remember there used to be living away from home allowances or tax concessions

Bloody hell! what sort of advice is that???Firstly you will be up for LMI again. It may be aroound 3% of the loan amount. Then you have loan exit fees and govt charges.Secondly why use cash to purchase an investment property when you have personal debt. You are just throwing money away if you do so.And why would you want to use a LOC as the main…[Read more]

I would probably refinance the original loan and split it into claimable portions. eg if only the interest on the $85k relates to the property make this one split. and the private stuff another split. Both should be IO.Then, if you have enough equity, make a third split in the form of a LOC and use that as deposit for the next property. borrow the…[Read more]

or just do a search direct with LTO

You should not pay PI on an investment while you have personal debt – otherwise you will be throwing away tax.

Pretty much locked away. You may be able to do something by a carefully structured loan to pay the expenses of your investmnet property, including the interest.

Yes it is possible. But the interest on the extra borrowings will only be deductible if they are used for investment purposes. in your eg the $180,000 – what will it be used for?

On an expected profit of $30,000 you will find that the real profit is nil so you may not have any tax to worry about.

Redraw = borrow.

So if you redraw money and then refinance with another bank this won’t change anything. The extra portion is still borrowed and the interest on this portion will only be deductible if you use it for investment related stuff.

I would advise you to get an offset account asap and avoid the problems.

Love and affection doesn't have much to do with it. Spouses can transfer properties to each other without stamp duty in some circumstances. This will vary from state to state, but I think Victoria is one of the most generous.

Of course, tax is a different matter and don't think there are any exceptions – unless you are breaking up – CGT would be…[Read more]

Love and affection doesn't have much to do with it. Spouses can transfer properties to each other without stamp duty in some circumstances. This will vary from state to state, but I think Victoria is one of the most generous.Of course, tax is a different matter and don't think there are any exceptions – unless you are breaking up – CGT would be…[Read more]

You could argue that you are trustee for the other 2. This is what you are really. But you may have trouble proving this to the satisfaction of the office of state revenue – if you could you would avoid stamp duty on transferring their shares of the others back to their names. Another option is to make a declaration of trust now, leave it in your…[Read more]

for starters see s118-145 ITAA 1997and ATO ID 2010/193    Rental property expenses: co-owner rents the property     http://law.ato.gov.au/atolaw/view.htm?locid=%27AID/AID2010193%27&PiT=99991231235958

You would have given the solicitor and the CU an interest in your property so as to enable them to put a writ on the property. This was probably drafted into the agreements you signed.

JessW wrote:
Just another question regarding cgt, which you may be able to help me with Richard (or anyone else!)…. I have heard that you can be an "owner builder" once every 3 years and pay no cgt? So, my situation is, we have a PPOR for which we have lived in for 5 years, and we have an IP that we purchased in May this year, have just…[Read more]

It depends on what sort of people. If one family unit a discretionary trust may be worth looking at. If bunches of separate people this may not work well (as the trustee has discretion on who to give income to) so you may want to look at unit trusts (which will enable the 50% CGT discount) or companies (Which won’t)..

If you do use a unit or a…[Read more]

bumskins wrote:
It's ok to own an investment property as long as you have never lived in it.

and if you have lived in it?

Good idea, but this may result in stamp duty being paid by the son sooner rather than later (depending on state). Another is to sell an option to the son.However both options result in 2 lots of stamp duty. The bare trust only results in one – and no CGT issues either.

I spend a lot of time in Japan too, Osaka – where are you?Have you considered using an Australian bank in Japan and borrowing in Yen? you should be able to get around 70% LVR at around 2.5 to 3% pa. NAB used to do this, but I haven't checked for a while.St George also used to give good LVRs to aussies living os. up to 95% in the past, not sure now…