If you default on a loan the bank is going to eventually get your other assets, but have a mortgage will make it quicker and easier for them. If a property is mortgaged and you default they can take repossession and sell. If no mortgage they will have to get a judgment against you and then enforce it by applying to seize property etc.But it is not…[Read more]

it means using 2 properties to secure one loan.In your example you may have avoided CC, but you have to be careful as naughty bankers will still try to cross in some instances.

You can only have one main resident at any one time (can have 2 over 6months under some circumstances), but you could have 100 properties and still claim 1. You could actually claim 6 or more- just not at the same time. Read the leglislation, a118.145 above.

good points.

thanks

Interesting – the 6 year CGT rule applies for absences for up to 6 years. You could be absent every 3 weeks, move in and have it as your main residence again, move out and in etc. It could apply maybe??? but a lot of hassle.What about just buying a place and taking in a permanent flat mate? CGT may apply to half the property, but you may avoid…[Read more]

Whats an MDC?

Insurance can't protect you in many cases.say you start a business for example and it fails.Or you start a company and give a personal guarantee and then your largest client goes under leaving you with no cashflow and your company collapses. Don't think there is insurance for this (there may be actually?) but you get the drift. Something can…[Read more]

s118.185 is the section concerned with moving into an investment property.s 118.185 Partial exemption where dwelling was your main residence during part only of ownership periodhttp://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html INCOME TAX ASSESSMENT ACT 1997 – SECT 118.185 Partial exemption where dwelling was your main…[Read more]

Terryw wrote:
Dan,What about s118.192?http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.html(and what happened to s118.196, repealed by the look of it)

Sorry, I had this around the wrong way – This section applies when converting a PPOR to an investment. Then you will need a valuation.

Yes, it may be possible under certain circumstancessee s118-145 ITAAhttp://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

I am being charged 3% on one property and 2.5% on another. But I am offering them more based on a progressive scale – the higher they sell for the more they get.

Dan,What about s118.192?http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.html(and what happened to s118.196, repealed by the look of it)

two ways to do it.1. Use the investment property as additional security for the new home and borrow 100% of the new home value2. Borrow some money from the investment property, such as increasing the loan/redraw/LOC etc and then use this cash for deposit on the new home.In both cases the money borrowed has been used for private expenses and the…[Read more]

Yes.There are basically two ways.1. Borrow on your house and then on lend this to a trust.2. Let the trust use your house as security, ie cross collateralise the loans.

You may have a scheme – read that private ruling a bit more closely. I have links to more rulings where the outcome was positive too. Will post later.

Interest on interest can be deductible, TD 2008/27.But what you have to look out for is are you entering a  scheme and is the dominant purpose of the scheme the tax savings?An offset can only be attached to one loan, but you could have more than one offset

grantos_champos wrote:
Terry,Lets say you have a dear old grandmother with a spare 50k that she wouldnt mind leaving in your bank. Could you potentially put that in your offset account or are there some other tax implications of 50k suddenly appearing in your bank account?Also lets say you put 95k in the offset account would you really only be…[Read more]

wender wrote:
Thank you Terryw and Richard It wont take me long to save up I know. Richard you have used some acroyms I am not familiar with please elaborateCheers

WDYU? (what don't you understand?)QBE is an insurance companyLVR = loan to value ratioLMI = lenders mortgage insurance

Dean, sounds like you need a good broker.