I haven't seen the private ruling, so not sure why it was rejected but think it was due to the LOC being secured against the same home as the main loan. So this made it look too much like the scheme in the Harts case.I would still recomend trying to set up a debt recyling strategy – just do it property so that it is not a scheme. Best to pay for…[Read more]

Its possible. But will disadvantage you by reducing your tax deductions.Every deposit is a repayment. So When you withdraw the money again the balance will go up but the extra interest will not be deductible (unless the money withdrawn was used for investment).You will end up with a loan where hardly any of the interest is deductible..I wouldn't…[Read more]

Not so lucky. The banks work on the lower of valuation or purchase price

Yes its true, but only to the extent that it relates to the property. If you take a 2 week trip to view a property for 1 hr you may have a hard time justifying it during an audit. But if you were there 2 weeks fixing it up it may be different.

Maybe you should sit down and do the sums on both scenarios and see how much better off you will be.Then consider a third scenario. If it is jointly owned one person could buy the share of the other. This would allow further borrowings which would be tax deductible and the cash released would be able to pay down non deductible debt. This may cost…[Read more]

You can actually claim 2 main residences at the same time and have them both exempt – for a limited period with conditions – s 118-140 of the Income Tax Assessment Act 1997. Not sure if it would apply in this situation.

Up to around 95% loans are available.No money down is possible in Australia by using a second property – either cross collateralising or borrowing extra from one property and using the cash as deposit for the 2nd. There are also a few tricks you can do such as vendor financing – but this is difficult in this climate.

I think it is a good idea to use the IO and offset on your home. And a good idea to set up the LOC too. But make sure that when you invest you don't use the money in the offset, but borrow from the LOC.

rechrachel wrote:
I second with Susie. You have to have an Australian citizenship to purchase property here for investment purposes.

This is not correct. There are millions of people who permanent residence who purchase as well.

Probably would cost you around $500. see bantacs.com.au they do them for this – and recently had one rejected.

No, there is more to it than that. You must make sure it doesn't look like a scheme to reduce tax. Best to get a private ruling i think.

Since no one has replied I will give it a go. Although I can't really add much.Really there is no point in buying property unless it will increase in value. Even if the rent is the same as a mortgage would be you will have added costs such as rates, repairs, insurances etc plus stamp duty and buying costs to get in. There will also be an…[Read more]

try Brett Davies Lawyers

Do you mean that property is worth $390k?That would make it highly geared. 85% LVR. Getting another property would make this dangerously high – unless you have other property or cash.

You will need a written agreement setting out how it will all work and should include things such as:- whose name title is in- loans- contributions of money- contributions of time, who does what etc- what happens if one wants out and the other doesn'tetcLook out for bankruptcy of your partner and/or future claims of spouses.

There used to be an intensive full time licencing course in NSW at the REINSW. It was around 3 months full time.

Agents fees – around 2 to 3% plus GSTLegals – around $1,000CGTLoan exit feesMortgage discharge feesThese are the main ones.

You would have:- Stamp Duty- Govt fees such as registration of mortgage etc- Legals and disbursments (title searches etc)- Building and pest (optional)- Loan fees- Lenders Mortgage Insurance (usually if you borrow more than 80%).All this would generally be the same whether you are using a company or trust or individual – loan fees may rise…[Read more]

I would ask you to consider a few more options.Why not move into this one briefly, obtain the FHOG and stamp duty exemptions live in it for 6 months (with boarders if necessary) and then move back home with the parents. This way you can have the property CGT free for up to 6 years, if not longer. The property could double in value within this time…[Read more]

I explained it above:Putting money into a LOC will save you interest but will cost you in tax. Everytime you place money into the account it is a repayment of a loan. Everytime you withdraw money out it is new borrowings. So if you put $100 in the LOC for one day and then take it out tomorrow to buy food the investment loan has decreased by $100…[Read more]