a.b would not be wise – you would just be creating an income which would be taxable and then have a non deductible mortgage.Buy the house, PPOR, and then mortgage it to get the investments and you will be much better off.

vsdabhi wrote:
Thanks a lot. I need to ask bank whether I have off set account. When I borrowed for my last property, bank asked me to cancel withdrawal facility. It was last year, I have to ask. Thanks for help.

If you have to ask then you probably don't have one – you should know about it.Always pay off private debt first and then reborrow to…[Read more]

I think you should try to use descriptions such as wife, husband etc and not specific names – but this may limit the extent of beneficiaries. eg. you may have a friend and name him, and then all the wives, husbands, children etc of him may be included. But if you don't name him they wives etc may not fall within your description, but he could…[Read more]

Mistresses (and the male equivalent?)cousinsstep childrenstep grand childrenadpoted childrenany company in which a beneficary is a shareholder, director or secretaryany trust in which a beneficiary is appointor of, trustee or or unit holder ofetcMost deeds will be worked broadly so all these, or most, are included alreadyFrom lender POV, just be…[Read more]

An accountant can help with the tax aspects, a solicitor with the legal aspects. What are you trying to ascertain?There are not many tax advantages to you if you rent from the trust. Just think of it as renting from someone you don't know. You may be able to get a discount out of them on the rent because of the family relationship though.If the…[Read more]

Yep, there are many out there. rates around 9%+ depending on the deposit etc.

yep. LMI is payable on all loans over 80% usually.

I am sure he would be. He is the most knowledgeable tax expert i have encountered.

I think there is usually mention of the covnent on the title. Maybe ask your conveyancer if this was the case. Not sure if you have any legal recourse if it wasn't brought to your attention – but you probably would have seen a copy of the title in the s32.I don't think there is much you can do. Just put it down as a learning experience. You could…[Read more]

Not sure how that would be treated in tax. If you do it make sure the funds in the offset are not tained by mixing with savings or connection with borrowing the money and the later investment may be lost.Why not just increase loan and get the money out and then pay back into the loan.  Redraw later when needed (make sure it has redraw first!). Or…[Read more]

I would be inclined to sell. Building is very stressful and you probably wouldn't want the extra stress now. You can always do another protect in the future.

Never trust a real estate agent. and never use a conveyancer. It is your responsibilities to check these things.

michael at http://www.guardianpartners.com.au

try Mike at http://www.guardianpartners.com.au

Hi DeidreIf you are not going to deduct the interest, then from a tax POV you don't have to worry. either a separate loan or adding it to the $170k should be ok. If there is any chance the $10k safety net could be used for the investment it may be an idea to have a separate  split for this as you could claim the interest – but it all will depend…[Read more]

You should probably be able to over come the PSI rules to some extent. You should probably seek out another opinion from another few accountants as it could save you a fortune. Something simple could be to form another trust which could operate as a service trust supplying services such as secretary, equipment etc and leasing this to the other…[Read more]

Why put it on either? Take out a separate loan would be the easiest. But since it won't be deductible, you could just increase your home loan.You certainly would want a IO loan for an investment property while you still have a non deductible loan – otherwise you will be paying down the investment and losing tax deductions while keeping your…[Read more]

Hi TuggerYoure LVRs are very high, you have low cash reserves and your incomes will halve in the comming year – sounds like it would be very risky to attemp another one. Unless maybe you could go back to work full pay if things suddenly go bad.

Since you have no debt you should be able to do something with your wife's income and the potential rental income from the purchases. May also be able to use your last 2 years tax returns for evidence of income – depending on your situation.

nope. much different in nsw. From memory it is stamp duty exempt from one spouse to both spouses but only for the main residence.