newbi2 wrote:
If you use your top up to pay off your CCs AND CONTINUE TO PAY the credit card payment but onto your home loan, you will be better off. Dont forget though, if you only pay the minimum you may end up paying more in total as it is over a much longer time frame, althougth it will be easier week to week.PS pay it off then cut it up…[Read more]

Yes many banks, most probably, can lend to Aussie's working overseas. I have found St George to be one of the best for this, and think they can lend up to 95% from memory – maybe even 100% if you own other property.

This is a complex area.I don't know the answer, but first thing to do would be to check on the ATO site and see if your country has a double tax agreement with Australia. if it does you may have to pay tax in your host country. If there is no agreement, then you will probably have to submit a tax return here and be tax accordingly – ie the CGT is…[Read more]

HarryUnit trusts offer no asset protection. The units are property which can be seized by creditors if the unit holder is sued. They also offer no tax savings as the profit of the trust must be distributed in accordance with % unit ownership. Therefore, some people have their units owned by a discretionary trust to get around these 2 issues.

One of my client's properties had cracks in the walls. This prevented them from getting finance as the lender didn't want to lend. Had to go to a different lender who then demanded a engineer's report.

I think it also depends on where you are buying properties. Different states have different rules. It is very painful in NSW now to hold property in a trust. But land tax is deductible and there are many other benefits of a trust  and the other tax benefits may still mean you are paying less tax overall.

Good work Stu. How's it selling so far?

CharlieDon't forget you need to make a profit too!!

Company structures are not recommended for appreciating assets as they don't get the 50% CGT reduction for assets held more than 2 years – so that means you will be paying a flat rate of 30% tax for captial gains. Whereas with a trust you will be paying a maximum of 24.5% and probably a lot less.

Hi Pickle.You don't have much left on your loan, but you should stop paying it down – change to interest only. This is because you will be able to claim the interest on this loan as a deduction when you start to rent it out – won't be much, but everything helps. You can then use the money you would have used on the current home to purchase the new…[Read more]

HiIn NSW Land Tax is 1.6% of the land value. Individuals get an exemption on the first $350,000 (approx) of land. But trusts don't get this exemption (except special trusts such as some unit trusts). So if you have a $350,000 property (land value) in a trust it will cost you $5,600 per year extra. That is a lot of money.Trusts need annual tax…[Read more]

I don't think you need to be licenced to give advice on property. But it doesn't sound like you are giving advice anyway.

I suppose there is a case in not paying IO for your home. If you are a spender, you could end up spending the extra money you could have been paying off your home.

I beleive you can claim all expenses just as you would with any investment property.Updating a bathroom before it is rented probably wil not entitle you to claim anything while it is not rented. But, depending on what your do, you may be able to claim more depreciation.3. it may be better to wait for the bathroom. Why give the tenants a new…[Read more]

Hi SGIf you have some equity in your existing property, you could use that (in a few ways) as deposit for the new investment property. Borrow as much as you can for the investment as this is deductible pay IO keeping your repayments as low as possible. Any extra funds should go off your home loan first. You can also get a tax variation done to…[Read more]

1. yes2. no – depends though on who you use3. accountantOther things to think about:a) trusts often have to pay much more land taxb) Losses cannot be offset against your personal income

I would always get IO loans on all properties – you can still pay extra if you decide and then have the option to fall back to the lower repayments if needed. But it would be better to pay the extra into a 100% offset account for tax reasons.

HiCan you get loans if you are a non resident and not working in Malaysia?

I think generally, anything that brings the item to a state that is better than it originally was is an improvement. Anything that brings the item back to the same state is a repair.

When did you buy the PPOR? It it was before 1985(??) it may be CGT exempt.Transferring to a trust will enable the trust to claim the interest, but it would probably be negatively geared and trusts cannot distribute losses so the trust will need other income to offset the loss or you would need to roll the losses forward to be offset by gains in…[Read more]