I was suggesting you split the loan like Richard said. Pay down the loan and then reborrow the money again, but have this new portion as a separate loan.But you have little equity at the moment and it may not be feasible to do it this way. It may result in LMI again if you borrow more than 80%.

Keep paying down your PPOR loan and set up a split for the equity. Borrow from that new split for the deposit and costs for the new investment property. Never use your own cash, but put it into your home loan to reduce non-deductible debt asap.All investment loans should be interest only too.Once you have purchased one investment repeat the process.

i am confused by what you wrote above. You only rented it out for 5 years but have held it for 19 years. Did you live in it prior to renting it out?

There is a way you can make the loan bigger and have it all deductible, but you have to be very careful and should get a private ruling before doing so.This is how it works. You get a LOC on the existing property. You use this LOC to pay all associated expenses related to this property once it becomes a rental. The interest on the LOC will be…[Read more]

If you have $380k cash to spend I would pay this onto any existing loan which is non-deductible. Then reborrow it (so the interest is deductible), by setting up a separate split, and use it for the investment property. Usually you would just used 20% deposit from this and borrow the remaining 80%.I too would shy away from a LOC as you can get a…[Read more]

yep, thats it

YoungInvestor wrote:
The S/P covers off on any other personal guarantees, but not any other directorships. I suppose the only time this would be an issue is if you had funded through a company and not given a director's guarantee. Uncommon, but not unheard of. S/P for reference -…[Read more]

YEah getting it out can be a problem, but you can store it there, re-invest it, and maybe take it out in later years when your income is lower.To be paying more than 30% tax you would have to be on a taxable income of $120,000+, so you should not need anymore, especially if you have a spouse on this income too and a few other relatives getting…[Read more]

not with ANZ. Free under the package.

Yep, you should really change it to IO.

I would look at paying off all personal debt if you haven't already. Then speak to a tax advisor about gifting the remaining money to a discretionary trust. From there buy a few properties using 80% LVR loans with the spare money parked in a 100% offset account.  Also look at buying some shares too and be very wary of investing in business or…[Read more]

Sounds like you may be with ANZ?? Just give them a call.

Figures are figures!

Hi KasheThe biggest disadvantage maybe that losses are trapped in the trust, but think long term. Did you know your trust can distribute to a company and the company will only pay 30% tax. There is also may other things you can claim too.I assume you are not self employed, but if you were you could probably divert income into the trust to offset…[Read more]

Why do you think you have done the wrong thing by setting up a trust?

Also start doing some figures, or projections using excel. Helps to make sure you know about the what you can claim too as well as the cashflow side of things.

Hi ClintStart by reading as much as you can. Get to know how investing works. In the mean time do a budget and start saving as much as you can. Then work out a plan on what you are going to do and when and how.

Good work Rhys. Getting your builders licence will be great. You just need to plan ahead develop a written plan of what you are going to do and when and how. I would suggest you do a lot of smaller projects before bigger ones. eg. 1 house and land x 6 instead of 6 units. Less risk and more flexibility, easier to get finance etc.

in NSW there is a solicitor Anthony Cordato who specialises in wraps and sells a contract.

johnmina wrote:
Haha after much reading and looking through your example I think I understand. basically Rent – Cost – Depreciation = (taxable income) then (taxable income) – (depreciation) two wrong make a right therefore (taxable income) + depreciation = (profit)LOSS So this is what you mean when you say depreciation isn't coming out of…[Read more]