It will depend on the circumstances. Just using the property is not enough. It must become the residence.

No minimum stay, but you need to establish the place as your main residence. So you must reside their exclusively for that period.

Its simple really

Lets say you have a $100,000 investment loan at 4% pa and $20,000. Depositing the $20,000 in the offset account will save you $1,600 in interest per year. This means you have $1,600 in extra income and will pay tax on this.

Now if you put $20,000 in a term deposit at 4% you would have $1,600 per year in extra income and would…[Read more]

How do you think this will increase your affordability?
(see the last section of my post).

When the courts make orders to rearrange ownership of property they do take into account who owns the property and who has paid for it. But they also take into account non-financial contributions.

So some investment structuring strategies could work against you in a family law dispute. One strategy is for spouses to keep finances separate and to…[Read more]

If it was less than 60 months since you took the loan and incurred the LMI then part of it may be deductible in the 2015/16 financial year – as long as it was rented at this time.

This statement could be true, but it is not always correct.

A main residence could be exempt from CGT provided certain requirements are met such as:
– not income producing and not able to claim the interest
– moved in as soon as practical after completion
– not claiming another main residence
etc

there is no 12 months rule. You are probably…[Read more]

A PPOR can be subject to CGT – it will depend on the circumstances.
You may have a job, but can you get finance is the important question. Serviceability has tightened up conisderably and this will get worse in the near future I believe.

Sounds like a risky investment to me.

But will you be able to get finance to settle in 2019?

Also if you dont mind what does a normal day look like for a mortgage broker?

The dream
Wake up at 10am, check emails. Then check out netflix to see if the latest episode of your favourite show is available. Pause the show while you take a few calls. Then head off to Bunnings to buy something. Take a call while walking back to your tax deductible…[Read more]

No, it is probably not a good idea to sell a main residence to pay down investment loans. You will be giving up your only tax free investment and you will be paying tax on the increased income. Plus you will need to find somewhere to live and if you are paying renting you will have to pay that with post tax income.

If you move in you can claim lmi on the remaining 5 years.

If you discharge the loan you can claim any remaining lmi unclaimed in that year of discharge.

It will be based on title unless one party makes application for the courts to make a property settlement.

I advise against 99% 1% ownership in most cases. Owning one percent of a property is pretty pointless. Consider the effects on borrowing too.

It means if you are the owner and mortgage the property you promise, as mortgagor under the mortgage agreement, must prevent people from lodging caveats. If someone lodges you must do all you can to have the caveat removed.

With a company new investors can be introduced by transferring shares without triggering stamp duty in most cases, so it is more flexible in this regard.

Banks generally won’t like to take income from property renovation into account for servicing. Property sales are considered one offs and even if they would take it into account you will need 2 full years tax returns with the majority of lenders.

A way around this may be to set up a company to do the projects. If your intention is profit making…[Read more]

Beware – lots of confusing comments in this section.

1. Don’t draw it down. If you borrow to pay off the main residence loan the interest won’t be deductible and your $120k split will be a mixed purpose loan.

2. With extreme care. If you pay for something with cash and then take money from the loan the interest will not be deductible because you…[Read more]

I have posted a new thread of a few ways a trust can help improve borrowing capacity. see https://www.propertyinvesting.com/topic/5031860-trust-strategies-to-increase-borrowing-capacity/

With serviceability it is not a matter of which lender, but the situation and the structure.

Land tax is too complicated to list the differences across all states. Even comparing 2 states is complex.
In QLD each trust could get a separate threshold of $350,000. Same with companies.