What happens to your return when the state governments puts up the levy on car part spaces – maybe to help reduce the number of cars being driven?What will happen if another couple of car park buildings pop up nearby?

Interest on money borrowed for business or investments is generally tax deductible.

Dean Potter wrote:
Hi guys, Would someone be able to explain what you mean about "splitting loans" ? Loan 1 $437,000Loan 2 (new split secured on PPOR) = $560k x 80% – $437k = $11,000 – Is this like an LOC on the the loan??  As in the $11,000 is available to draw down at any time? Or is it actually another loan? If someone could explain that…[Read more]

Ok, Richard. I agree with that. Same at NAB too

hi RIchardI have put many a client to St G and never had a problem keeping the loans uncrossed.

Positive gearing is good, but there is no point in buying something that has poor growth prospects. You need the capital gains to get rich.

Yes there is a difference between the 2. Different countries have different laws. I would be looking at using an NZ trust.

I agree, but just check the loan documents when they come to make sure the loan is only secured by 1 property – some banks try to slip in the other property as security when you are not looking.

You should be careful about borrowing money and putting it into an offset account and then investing it. The connection between the  borrowing and the investing can be broken and the tax deductibility denied in some cases, especially if it is mixed with other funds.A better way would be to use a LOC as the money is available but not used until…[Read more]

What happens to your guarantee if the companies goes into liquidation 1 month after settlement?

hiI think you misunderstand a bit. Your broker is doing you a dis-service if you set it up like that.This is how I would do it.Loan 1 $437,000Loan 2 (new split secured on PPOR) = $560k x 80% – $437k = $11,000Loan 3 $230k (IP 1)Loan 4 (new split secured on IP 1) = $370,000 x  80% – $230k = $66,000Net result = $77,000 available equity at 80% LVR…[Read more]

Amazing!Does this lender take out a mortgage or any security for the funds the are supposedly lending you?

creative!

Yes, the Family Law Act gives the courts the power to make orders for trust property. Other than this, if a trustee is sued personally the trust assets are generally safe. But the bankruptcy act does have clawback provisions if property is transferred to someone else with the intention to defeat creditors it can be clawed back – for up to 5 years I think.

Not really. There are a lot of accountants around, but I don't know any good ones down there. maybe gatherum-goss accountants.

Try http://www.guardianpartners.com.au

If you borrow 100% like that it will mean the properties are cross collateralised. This will cause problems later.The best bet is to set up another sub account on your main property. Take the cash from there and then use as deposit for the next one. That way 105% of the loan for the new place is deductible and both properties are not crossed and…[Read more]

It depends.If you just take money out of redraw then no LMI would be payble.

They would be depreciated over a number of years, but only claimable when the property is available for rent.

I am not sure what you mean in the first paragraph. What I am trying to say is to use 1 director to limit the compulsory guarantees and then if this person's borrowing capacity is used up then start to offer more people to the bank to guarantee the loan. These could be added as director, or could be beneficiaries of the trust or maybe even…[Read more]