If you want to pay 3 properties off quickly why not buy 6. Wait for some growth and then sell 3 and use the proceeds to pay off the other 3. Live in one that you intend to sell and sell this CGT free for some extra benefits.

Asset protection is legal advice. See a lawyer. Accountants dont know about various aspects such as the bankruptcy act conveyancing act and other legislation as well as the laws of equity.

You can have good asset protection and be able to claim negative gearing benefits. But it will all depwnd on your situation and what you are trying to protect…[Read more]

It depends. If the property is currently an ip and will remain so then it should be deductible in full in the year incurred.

Actually I am not sure. I think the NCCP may apply to any natural person borrower.

You entered a contract and didnt read it? And then blame the other party?

Did you ask the insurer about malicious damage? Did you seek legal advice before entering the contract?

No lender will lend baeed on rental income only where the NCCP applies as it would be a breach of the act.

Sounds like you may have been acting as trustee for him. If you can prove the trust relationship there may be nominal duty and no cgt event.

If you cannot then there will be duty on the value transferred. It would also be a cgt event.

Younwill need to discharge the mortgage and reapply for a new loan. Consider issues with deductibility of…[Read more]

Sorry Patrick.

For those complementing just make sure you get independent legal advice on this before implementing.

I am located in Sydney.

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A caveat cannot create an equitable interest. A caveat is notification to the world that someone other than the legal owner has a non-legal interest in the property. In this situation it would be the mortgage which creates an interest in the land.

Yes it can improve serviceability – you would think the opposite though.

These days most lenders assess payments for other financial institution loans as PI and ignore any IO period.

So having a new IO loan for $100,000, 5 years IO and 25 years PI, for example, will result in the lender assessing the loan as 25 years PI.

However if the loan…[Read more]

There is another thread here on this topic.

What is a ‘vestey’ trust?

Ethan – I wasn’t suggesting you do this – just that the other broker/bank maybe.

Request the client to get a copy of the servicing figures.

Probably non-disclosure. leave off a kid, a loan etc and serviceability booms. Bank staff do it as well as brokers – fraud

You could depreciate any furniture items purchased that relate to the property. You would have to wait until the property is available for rent for the tax claims to begin but you could buy now.

Don’t forget to apportion between investment and private use.

A valuation would be needed if it was your main residence and then become income producing. This would occur when renting out a room, a granny flat, operating a business there or just renting te property out.

The cost base would then be the value at the time it was first income producing. All the aquisition costs and interest etc until that point…[Read more]

Why would you want those? Out of date and questionable content.

Coudn’t claim the main residence exemption until after moving in.

You can get a mentor during the first 2 years

First is correct.

The valuation amount when you move in is irrelevant.
$500 pp $600 sale = 100k capital gain.
You have owned it 2 years. Lived in it for 1 year.
So 50% of the $100k will be assessable gain = $50k then you can apply the 50% CGT discount = $25k
This $25k gets added to your other income so the max tax would be $12k approx.

Also…[Read more]