I seem to recall now that the govt introduced some tax rebates or similar to encourage people to deposit money a few years ago now.

Good on ya!

Didn't CBA increase its rates by 0.45% yesterday, despite the RBA increase being just 0.25%? So far they are the only ones. Another reason not to use them I think.

why bother with CBA?

Not much you can do really other than a sandwich lease. You buy an option on the property and then sell one to the tenant. That way if they don't take up the purchase you won't have to

You would be able to claim interest in propertion to ownership on title. You parents have essentially on lent money to the partnership so they could charge you both interest and this would be income to them and a deduction to you, but they could claim the interest they pay as a deduction too. It may work out, or not, that they could charge you a…[Read more]

1. Transfers on death are usually exempt.2. Not really anyway. Gifting would result in stamp duties are market rates. I think they would still get the FHOG and stamp duty discounts.3. Probably could be done if you were party to a new purchase with them. Don't think they would get a loan on their own for 2 reasons – 1. no income, 2. they would be…[Read more]

I think you should be able to fill in a few forms at the Department of lands and provide proof of correct name and this would probably be lodged thru your bank. May be best to call the bank first.

By paying PI you would be paying more off the debt, but you can achieve this with IO by paying extra too. You then have the flexibility to reduce the repayments if need be.But if you have no other debt, then PI should be fine. What ever suits your personality.

You could possibly avoid GST by purchasing it int he exact same percentages as the final ownership and use a deed of partition. So when it is divided you are not changing any ownership percentages.

You don't say if you have any undeductible debt – if you do you should be paying this down first instead of investment loans.Assuming you don't, then you could use PI, but I would still suggest IO as you can save up the funds in the offset and end up paying the same interest. You also have the option of paying extra on the loans, like PI or even…[Read more]

look at up the tax act. s118.145 ITAA 1997.

Since you have no other debt, i would suggest you seriously look at using a discretionary trust.Depending on your situation you could gift or loan the trust the 20% deposit to get started. You should then keep gifting (probably) money from wages etc into the trust. The property will become positively geared quickly and this income can be…[Read more]

could work if the dominant reason isnt the tax benefits.

Good to hear. Actually there is a point to the letter. Sort ofSupposed I owned a property for you as trustee. You wouldn't want me to go out and mortgage it without your consent. The is the principle they are applying – even though the trust deed would be permitting the trustee to mortgage the trust property.

See the links I have provided somewhere to private binding rulings from the ATO regarding similar 'methods'. Some have been approved, while some rejected. It all depends on how you set it up really.

Thats a lot of rent you pay, oever 50% of your income!The first thing you need to determine is if youc an borrow any money and then how much. If it is not enough then you need to work out ways to increase borrowing capacity.Once you know you can borrow then you have to determine the strategy. Work out cashflow projections and see if you can cope…[Read more]

I would advise against sole trader. It only costs $400 to start a company, so why not do it. Transferring later to a company may involve CGT and stamp duty too.

It also depends on other factors such as have you paid off your PPOR mortgage? If not then I would be keeping my cash in an offset account attached to that.

Don't pay any of the loans down, as you won't be able to get your cash out without tax consequences.Try to use a 100% offset account attached to one of the loans to keep your savings and receive rent etc. keep saving, and this will reduce the interest payable which will mean more savings. Try to increase incomes and rents too and then your…[Read more]