sounds like their planning is limited then – what if you don't want to buy the properties from their developers?

I don't think the are – unless you are in the business of investing in residential property.

tax. main residences are generally CGT exempt.

Firstly, RAMS is a non bank lender so you will have high exit fees and no offset account. These are major drawbacks! IO is the way to go, especially if you will be moving out. Redraw shouldn't matter as you should not be paying down the loan if IO. Do you understand the tax implications of paying extra and then trying to withdraw later?

Thats not really a good reason to change title! You should be able to get the discount without that.

Capital costs are costs associate with the house/land and its purchase and includes the house itself, fixtures and fittings and legals and stamp duty associated with the purchase of these.Borrowing costs would be application fees, LMI, registration of mortgage, stamp duty on the loan (now mostly abolished I think), stamp duty on LMI.say you borrow…[Read more]

AmyIf you are using your own cash that means that you will have less cash in the offset on your home which will result in higher non deductible interest payments. (maybe your non deductible debt is fully paid off?).Trusts can run at losses and do all the time. One of mine is running at a loss now. But they must keep paying the bills somehow and…[Read more]

i would disregard inflation for this sort of scenario as it will apply for any option you go with.You should also consider that if you had $100,000 cash you should be using this to pay down your non-deductible home loan and then reborrowing it to invest. You will be be saving $x pa in interest and will also be able to get the other investments too.

Also must factor in extra land tax in some instances.

Marriage is not really necessary (nor is any love or affection required) – if they are in a spousal relationship that would be enough to obtain the exemption in Vic. (assuming the property is in vic)

saurin_83 wrote:
Hi there,From Loan B I would user 60K as Deposit and 19.5K as other capital costs (stamp duty, morgage registration etc..) If I understand your advise correctly I will be able to claim this in next 5 years in tax (does it mean 79.5/5 = 15.9K each year)? so it means if I earned 80K for next 5 years then only tax I would be on the…[Read more]

If he wants 10% of the property, including growth etc, then he really wants ownership. He could do this in 2 ways (maybe more). 1 is to go on title as legal owner and 2 is for you to act as his trustee and own his share on behalf of himself. Both will have tax consequences and probably consequence for the loan as well. You really should see a…[Read more]

wafti123 wrote:
Thanks guys, I was wondering that if you don't change your mailing address, how can you prove to the ATO that you were absent from your PPOR. It seems that there is nothing stopping someone from saying that they moved out for a short time to claim the CGT exemption while actually living in their PPOR. Dan

For this it wouldn't…[Read more]

wafti123 wrote:
  Why are these situations treated differently?

The 6 year rule is only applicable when you are absent from your residence if you are just renting a few rooms out you are not absent so can't claim the exemption

Yes, that could throw in a lot of complications. Stamp duty and CGT for him when you sell. Non resident tax rates (start at 29%) etc.It is probably better to just borrow from your dad – but again watch out for the tax aspects of any interest he charges you.

You can negotiate basically anything and do it a number of ways. You could put down as special conditions all of these and if they come back with problems then you can say you will pull out because of XXX and that is when you can start going backwards and forwards negotiating on price etc. Put finance in there too.or you could put in a special…[Read more]

Do you mean a beneficiary of the trust wants to rent it? Firstly you will have to check the deed to see if this is permissible. Your deed may also specify the procedures to be followed such as charging market rent etc. the trustee can only act in accordance with the deed (or tax act/court order maybe) and if he/she/it doesn't then they may be sued…[Read more]

stamp duty and other capital costs are deductible against capital gains. You would also be able, usually, to borrow to pay the stamp duty and deduct the interest on this loan if it is for an investment property

see s 8.1(1) of the Income Tax Assessment Act 1997

banks usually don't have an issue – it is the non bank lenders with restrictive policies and products that muck things up. Its not really just cross collateralising that should be avoided but all the tax problems that will come with increasing a loan – you will essentially be throwing money away by ending up paying more in tax.