Wives?? You mean he has more than 1?What you can do is to talk to a sexy accountant about setting up a LOC on your place and borrowing from the LOC to fund the interest and other costs on the investment. This will free up cash which you can use to pay down the new PPOR loan. You need to be careful about structuring this though.

I have another one, When one bank says no, don't give up, but try elsewhere. I remember being knocked back for my first loan and just gave up. If only I had got that property…….

MichaelWho is the IFAAA?And what is the title of your book?

Hi KWhat the ATO said Sounds reasonable. Maybe you should apply for a private ruling?I think what you need is a tax lawyer as interpretation of legislation is needed.  Even if the advice costs a bit it may be worth it. Get the advice in writing and rely on it, if it is incorrect you may have a claim against them. Being extra cautious you could…[Read more]

I don't live off equity and haven't tried, but I do like the theory of it. My post above was just a quick one on one possible way to do it and I tried to improve on the concept of just taking money from a LOC. It would be so much better if the interest on the money drawn could be deductible.One way to make the interest deducible is to borrow to…[Read more]

If you just pulled money out of a LOC the interest wounldn't be deductible. So after many years you would end up with a very large loan with none of the interest deductible.I have been thinking about something slightly different.very roughly (haven't thought this thru properly yet):what you could do is pull out some equity and invest in shares…[Read more]

If you had lived in that house before moving out and renting it, it could be CGT exempt if your absence is less than 6 years. s 118-145 ITAA

I have been a broker for 8 years and have never used one of those computer programs – they are generally useless.

possibly, if your income is high enough to service.

I was just thinking of all the capital gains I could have had on those properties that I wrapped. If only I had kept them.

Its going to be cheaper than renting and you will get to own the place and get all the future capital growth. Rents will also increase year by year so the benefits will increase as time goes on.

I think the FHOG won't be around for ever, so you may as well use it while you can. Living in the property initially will also help making it CGT free.

CGT is calculated on the date of the contracts, so having a long settlment could still mean you fall within the 12months.Not much you can do now to minimise CGT, but if you had the property in the trust all the gain could have went to you and you would have saved a bit.

I am still a fan of LOE, but it is a bit harder now than it once was.

1. Never lend anyone money!2. Never do wraps!If I followed these 2 I would be rich!

Your accountant is an idiot!Setting up a trust down the track after you have several properties will probably cost you hundreds of thousands of dollars in stamp duty and CGT.your incomes may be low now, but what about in the future. What about each child receiving $3,000 pa tax free – this alone could save you a fortune in taxes.What about the…[Read more]

Damn, you have blown your chances now.Westpac could probably do it if you were self employed for 1 day or more.

If you buy t live in you will get a CGT free asset, maybe the stamp duty exemption and FHOG too. You will have an asset which will be growing in value. If you invest you will also have an asset growing in value though.The major different is the monthly cashflow. If you rent what will the rent be like in comparision to the repayments on buying? How…[Read more]

You should check the building – structurally etc with a building report and you should check for pests such as termite with a pest inspection. These are optional and some people don't get them. You pay for them too.

Do some sums and compare the two. If you buy the investment I presume you will have to rent, so you will need to take into account rent payable, increasing every 6 months and the CGT payable on the investment if you were to sell.