better check with a tax advisor, i can find nothing which indicates a minimum length of time. The tax act doesn't specify, it just says if a ''main residence' but doesn't define it. http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html Principle residence is defined in TD51, but again no time length is…[Read more]

Why assume that? It is usual these days for a full inspection. Some lenders won't inspect if the LVR is low, but policies change constantly and you wouldn't want to find you can get finance but can't get an increase or, if you want to sell, the buyer can't find finance.I would be getting a building inspection at least, and maybe an engineers…[Read more]

Just think of investing like trying to lose weight. There are lots of different methods out there. most probably work, though some are scams

things like this can hurt finance too. I had a client with a house with large cracks and the lender wanted an engineers report which cost him around $1000 – and then they declined it anyway. i think he did some wall papering after that

yeah, that would have worked in the past. But these days asset lends are about 9 to 12% pa in interest and the loans are only usually for 1 to 2 years so it could be very risky

I agree with damityou want to pay back non-deductible debt first before paying off any investment debt. So change the IP loan to IO asap. This will reduce the repayments which you can then use to pay off the PPOR loan.Instead of using any cash for another IP what you should do is to pay down the PPOR loan and then reborrow it for an IP.…[Read more]

guarantees are not really worth much. If things go back and everyone starts calling in the guarantee the company can go under and then you will have nothing.

Generally you can borrow around 5 times your annual gross income. plus a bit more if rent is included and your are living at home.

Talk to your lawyer. I think signing the notice will indicate you will be cancelling the contract, and keeping the deposit, if they do not settle – but you don't have to cancel it.

You might have to do up a spreadsheet with both scenarios and work out which is best.Another idea – what you considered buying the dream home now, live in it for 6 months and then rent it out and you rent elsewhere. You then claim the negative gearing benefits, save tax, and still have the property CGT free for up to 6 years. Do this for a while,…[Read more]

marx, your post doesn't make sense. neither do a few of your other ones.Fitzer, ATO looks at the purpose the funds are used for not the security. You want to borrow to pay out private expenses so the interest won't be deductible.What you pay be thinking of is using a LOC to pay the interest on other investment loans. This is totally different and…[Read more]

No tax on borrowed money, but interest would not be deductible as others have mentioned. So a way around this may be to live on the rents and borrow to pay the other loans – talk to a good accountant.Also a ps – it is getting hard to get "cash out" these days, including access to equity via a LOC. so don't rely on this method too much

I think you will have the right to rescind or cancel the contract if they do not settle within the 14 days after issuing a notice to complete.

see the pdf booklets at http://www.bantacs.com.au for some good info

You can't claim a house as your main residence until you have lived in it. So if you later move in and then out again it could be your main residence from the date you moved in, but not before.

Since you say the PPOR is going to be rented out, it might be best to get a high a loan as possible. This will keep your cash available for personal use. A downside is you may end up paying more LMI. Use a IO loan with the 100% offset as you mentioned. Maybe weigh up the scenario of paying more deposit and see how much LMI you will save (this is…[Read more]

YOu can rent out your main residence for up to 6 years and still treat it as your main residence. You will need to live in the place before it can be your main residence, and you can generally only treat one house as your main residence at any one time/

Immigration status is of no real concern to the ATO. Residence for tax purposes is what counts.If Australia resident, I think you will be taxed on the foreign income as if it was australian income and then given a credit for any tax paid overseas.

HiI think you may have some misconceptions about lending.  To get a loan you need to convince the lender you can afford the repayments. This is the case whether you are releasing equity or buying a property – in fact the lender will be more worried with releasing equity as you can just walk away with the money and spend it. At least with a new…[Read more]

If you pay tax then you must be making a profit, so it can't be all bad. Don't worry about it too much. As they say only death and taxes are the certainties of life.