I haven't read the article, but it is now get to SMSF to borrow up to 85% LVR, so you probably need even less money in your super now to enable you to buy property.

It depends if you were restricted due to lack of deposit or income?If income, then  you will need to have had a large pay rise, probably. Things have tightened up since then so it will be harder to qualify – in fact you should check up that you can still qualify for the one you have applied for.If your income is ok, then you may be able to…[Read more]

Low Doc loans have changed dramatically in the last few months. They are much more rare and the requirements have tlightened up. ING was one of the only ones that did not require an ABN, but their requirements changed yesterday and they now require a 2 year ABN as well as GST registration.There may be others still out there that do not require an…[Read more]

If you transfer it to a trust now you will incur stamp duty and lose the tax exempt status of the place. The trust will also probably run at a loss which you can only offset against other income of the trust, not your own.Can't see how transferring it to a trust can save you any money.If you transfer it into a trust you can just hand over control…[Read more]

Start reading as much as you can. Two good books are the ones by Peter Spann and Michael Yardley (forget the titles sorry).

Thats a good point Richard. Just out of curiosity do you know the level of commissions in the USA or UK?

Land is just a capital cost. so you add up what you paid for the land and construction and take this from the selling price = capital gain.Interest on the construction phase should also be deductible if your intention was to rent. (interest on vacant land can be deductible). check with your accountant.

wteaustralia wrote:
Ok, so here is my situation. I have just moved into a house that I built as my PPOR and have just bought a block of land around the corner to build on as an investment property. If I was to move out of my current house and into the new one when completed I could then rent my current house for up to 6 years while still…[Read more]

A trust would be better than a company. Distributions have to be paid out to the person/company who could then gift it or loan it back to the trust (asset protection issues here).

I would say you can as long as you intend it to be an investment property. Confirm with your account.

Yes, it is probably just the beginning with most of the major banks probably going to follow westpac. Don't know if it is the end of broking though. I checked through my records and I haven't used Westpac for 3 to 4 years now.

It could be done, but you would have to pay stamp duty on the transfer, get a new loan, new loan fees, legal fees etc. Companies will also pay more CGT than an individual when you sell and negative gearing losses cannot be offset against your personal income.

You could probably claim all general expenses associated with the house such as rates, insurance, interest, travel, etc. You could also claim depreciation of building and fittings, and loan costs such as app fees, LMI, stamp duty on the loan etc – but these would be claimed over 5 years. You could only claim these deductions while the property is…[Read more]

usually all siblings will be beneficiaries automatically without being named – actually every relative, alive or yet to be born, will be included. But there will be tax consequences if you distribute to a non-resident (for tax purposes). They may have to pay more tax. But once they move over here they could start to receive distributions then as…[Read more]

Since most low docs require a 2 year ABN with GST registration it would be a good idea to register for one now, just in case. Other suggestions- To help serviceability maybe you could get a second job for a few months before settlement is due – quit later if need be. – Keep saving madly just in case.Also, since the settlement is long term, over…[Read more]

You should never (or rarely) pay down a loan, especially a investment loan. Maybe you could change the portfolio to a standard IO loan and set up an offset account against that.

crj is on the ball I think. A trust with a corporate trustee maybe the way to go as the ownership should be able to stay with the company and you just back out giving control to the sibling.

DexterI had some discussions on this with an exATO guy and he suggested something similar. You would be borrowing to pay investment expenses which is acceptable business practice, but there is still a risk the ATO will deem it a scheme to reduce tax. It may also help to have the LOC and the home loan at a different bank – to make it look less like…[Read more]

They are not so common, so I haven't come across one before, but imagine they would be more difficult to get finance for. This would restrict the number of potential buyers and hence capital growth prospects.

Never pay down an investment loan. Put the money in the offset account attached to the loan and save the same amount of interest