I think it is a good idea to rent while owning – especially if it will result in savings. You can still claim the CGT exemption on one property so there is nothing to lose – other than the hassle of moving etc.

Your right to not beleive an agent without proper research. Maybe they want to sell before the approval is rejected. You may be better off finding a similar sized block yourself and sub-dividing that.

I would prefer LO over wraps for a few reasons:1. you are not assigning ownership until the option is exercised2. easier to get finance3. LO can be set up in many different ways.4. maybe easier to kick out the tenant5. if things go wrong, no issues about ownership of equity.

Your accountant is correct. Having a company or trust will not help your borrowing power – in fact it may hurt it in the long run as your taxable income will decrease.

Yes sad about SIS. It must be about 4 years since he died. I never met him, but knew a friend of his and heard all about his investing stories did see a picture of an amazing tattoo he got on his shoulder.

People have been complaining about low values for as long as there have been valuations. Firstly most people over estimate the worth of a property and secondly valuers need to be conservative to avoid getting sued. So before you get a valuation ordered it would be a good idea to do the research yourself and collect details of recently sold…[Read more]

I think you should definitely have one property in your own name as your main residence so as to utilise the main residence CGT exemption.After that I think you should seriously look at discretionary trusts, mainly because of the long term tax savings and flexibility. The asset protection is a bonus.So rather than relying on others why not sit…[Read more]

YIYou cannot claim conveyancing costs against income – only against the CG when you sell. They are a capital cost. Richard was talking about loan costs.Of course if you borrowed to pay the conveyancing costs you could claim the interest.And if there is something you have missed you can amend a tax return for up to 4 years previous.

YoungInvestor wrote:
What if it was used to pay stamp duty and other costs associated with acquiring the property?

yes, you can claim the interest on borrowings used for business or investment purposes. This would include anything bought for the property so if you were to borrow to pay for stamp duty or rates etc then interest would be…[Read more]

YoungInvestor wrote:
Was the 105% loan entirely deductible?

If was was used entirely for investment it would have been

Do you know what you are doing? All the roles of the trustee, appointor etc? If not it may be best to get some advice of you could make costly mistakes

Yes pretty much the same. It can be a bit more difficult if you have a corporate trustee, especially with low doc loans.

No, you cannot transfer without stamp duty and CGT would be pyable if the place was a rental property. Also the lender would require you to discharge the loan and reapply for the new loan as the ownership would be changing.Why not keep it as is and claim the main residence CGT exemption. Get future ones in the trust.

I personally can't see much point in using a unit trust as there are not tax savings and no asset protection. You might as well buy in your own name. You could borrow to buy the units though.One advantage, however, of the unit trust is that you may be able to transfer the units to your SMSF without stamp duty later on.

in the good old days there was such a product. There were loans of 105% or even 110% of the value of the security – ie one one property

and try http://www.lawcentral.com.au

It is just a 2 page document – you can find it for free online. Needs to be witnessed by a solicitor – not sure how you would go with them overseas. I think maybe an overseas lawyer could witness.

In that case it may be best to wear the stamp duty and get out, save your credit rating and get back on track.

Vitaliano wrote:
DWolfe, no worries hijack all you like…..just dont terrorise!I get you Terry. but my PPOR will be turning into an IP in 5 months (to satisfy the FHBG) and moving into parentsto save and get more IPs.I too have been told by my MB to get at least 10% deposit, legals and stamp duty in order to get my loan. I dont know where i…[Read more]

If you have equity you should set up a new loan and borrow the deposit while placing the cash you would have used into decreasing your non-deductible debt. The net result is a overall loan of the same size but reduced non-deductible debt = more tax deductions. If you don't do this you are really throwing money away.