I think you need to see a broker. Banks will run a mile if you tell them you are going to quit your job and change careers. Borrowing money to live on will make it worse – in their eyes.Some things to consider:You could possibly just move the land to another bank to access the equity. However, it is generally difficult to pull money out now…[Read more]

I was curious so looked up the legislation myself (its too cold to do anything else atm)Firstly, the FHOG Act, http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s6.htmlthis says it adopts the definition of the 'spouse' as in the Property (Relationships) Act: http://www.austlii.edu.au/au/legis/nsw/consol_act/pa1984298/s4.htmlhave a…[Read more]

HiYes, all interest is tax deductible – but the income from rent is taxable too.So lets seeIncome is $29,510less expenses of:Interest $16,250= a profit of $29,510 – $16,250 = $13,260 (income less expenses)This is the combined profit, so you should divide by 2 if you own the place 50/50.You will each have a income from property of $6,630.This is…[Read more]

You will have to look at the legislation and how 'defacto' is defined for the first question.2nd, question is easy – they don't care what happens after you buy the first, as long as you continue living there for the first 6 months.

Not reallyBecause you haven't factored in the income from rent.Say the rent is $14,000.Interest is $16,000That means there is a $2,000 loss. Half each.Husband's share is $1000. If he is paying 30% tax, then approx $300 back.very approx tho.

Never go cashflow over capital gains.  – but how confident are you of the capital gains/?

KaatjeYou can gift things to trusts. Though this shouldn't change the tax aspects.

crj wrote:
Also if Trust B has a taxable income of $100,000 (received from Trust A) and does not distribute this, Trust B will pay income tax on the undistributed income.  You haven't found a "HUGE gap in the taxation system" – you have not done enough reading.  Tax law is indeed an area where a little knowledge is dangerous. 

Yes, and at to…[Read more]

What is the date of the finance clause? If it has expired and you did not notify the other party, then it is no longer a condition and you are locked in and you are in a very dangerous situation.You are very brave in not chasing up the broker to find out where your loan was, especially if you were supposed to settle so soon. I think the broker may…[Read more]

Hi KaatjeI think you misunderstand tax a bit.Just remember that only interest on a loan is deductible, not the principle.Maybe, ignore the fact that it is a trust. Think of it as a person holding the house.If you buy a house for $100,000 you cannot claim a $100,000 deduction. You can only claim the interest on the loan (and other deductions). Even…[Read more]

Yes, don't just decide on rent.What if the place was a dud and the rent didn't go up for 10 years.You want some capital gains – probably more so than rent. CG will make you rich,

What did your friend agree to?Maybe he signed an agreement which allowed the agent to decide the tenant and for the agent to have access.I wouldn't like it myself, someone coming into the house while not there – issues of theft and privacy. And also the fact that the agent lied.Even if this was agreed to in the original agreement, I would change…[Read more]

HiI think you have missed something!but first, let me try to summarise what you are asking…..Trust A has a profit of $100,000 in one tax year. You want to distribute this profit to trust B – thinking trust B will buy a $100,000 house and therefore have no profit and no tax.If this is the case you must realise that a house is a capital asset and…[Read more]

KylaYou will have to make a decision on where you think rates will go. If you want to fix, Maybe you could keep a portion variable to keep the offset against this loan.

It is not an ideal set up, but you are stuck with the fixed. I would suggest you change all loans to IO, if not already, – will have to wait for the fixed period to expire. Then set up the offset on the one you are living in. If there is enough equity at this stage, then set up a LOC as well and use this for investment expenses.When you decide to…[Read more]

hi KylaThat won't help with the equity side of things, but will save transfer costs. I would immediately change you loans to interest only (if not already) and put all spare cash into the offset account, ready to be used for the future PPOR.Also, if you have enough equity, set up a LOC and use this to pay for all investment related expenses such…[Read more]

HiYou don't have to cross collalteralise the loans. You could set up a LOC on one property and use this as deposit for the new one, borrow 80% of the new one as a separate loan. All loans can even be at different banks.You could transfer the existing house to a trust. But this would result in stamp duty and legal fees as well as possible loan exit…[Read more]

Sounds like the loan isn't even approved yet, if they are asking for more things and you are waiting for the letter of offer. I would be more worried about losing your 10% deposit and being sued. Have you been issued with a notice to complete yet?

The trouble with selling is all the costs involved.Why not buy the future PPOR as your next IP, then move into it later when you need to.

Start paying extra now to get ahead a bit if you are worried. It will save you interest and speed up the process.