Hybrid2007 wrote:
As far as i was told by my accountant, it is fine to have one loan account relating to separate IP's (u could even have PPOR in there) but as long as you can account for each of the different expenditure with receipts, dates, account reconciliations etc, they will just apportion the expenses to the separate properties. Sub…[Read more]

If you were to increase your existing loan to 95% you would generally only be charged LMI on the extra portion.

Depends on the bank and LVRs. Some banks dont have time restrictions on valuations, but the mortgage insurers generally like 6 months

Hi1) It is generally only possible to get one offset account per property. Some allow more than one – maybe Bankwest off the top of my head??? But your would need to split the loan into 2 and have one offset against each portion.2) All parites need to be eligble to get the FHOG I beleive3) I think you can just split the expenses donw the middle…[Read more]

If you use your own funds, then the money taken from the offset account cannot be replaced with money borrowed with the tax being deductible. You would be paying cash for an investment and then borrowing money for something you already own.If there was a trust involved, you could lend your money to your trust and then refinance this amount from…[Read more]

Trusts don't pay tax.If the profit is not distributed the trustee is taxed on it at the top marginal rate. So if you distribute to another trust, that trust must then distribute it. Worst case, you could distribute it to a company and cap the tax at 30%.You can pay any bills in any manner you can negotiate. Your trust should be only paying bills…[Read more]

If you were to move out and rent your place after 6 months you could claim all interest and repairs from that point, AND it is still possible to avoid CGT on the sale.

It is best to reduce any non-deductible debt first. And a good idea is to never pay down a loan as once you put the money in, you cannot access it again without tax consequences. The best idea would be to use a 100% offset account so you still get the same savings in interest, but without the tax problems.

I don't think finance comes into it. As long as you will live in the property during the first 6 months you should be ok.But if you were to live in Australia, would you still meet the requirements of the CBA loan? ie if it is a foreign currency loan, you may have to be earning an income in that currency.

luke1982 wrote:
Hi all,Little of our background – I have owned a property now with my partner for 1.5 years. Before we bought the property I had no idea about positive gearing and thought we were doing the right thing by purchasing a property early on in life. Since reading many books, watching many dvd's and listening to many cassettes, i've…[Read more]

Thanks for the reply Chan and Naylor.Your trust sounds very good.

A Vanuatu company – keep the profits offshore in a low tax country

http://www.bantacs.com.au/booklets/Rental_Properties_Booklet.pdf

I was just reading about this today on the http://www.bantacs.com.au site. There is a PDF document on property investment.Going from memory, it seems that if someone is building with the intention to sell, then they need to register for GST if doing more than one property. There will be no CGT in this case as the property is an active asset. The profit…[Read more]

I have just passed a link of this page to a client of mine in Canberra who is looking for a place

Sounds alright. Where is the house and what is the option fee requested?

It should be acceptable, but it is still not ideal as any repayments to the account over and above the interest will need to be apportioned between the private and business portions in the same percentages as their balances. ie you cannot just pay into the private portion first = which is not ideal for saving tax.

HiAre you saying you wish to borrow to pay IP expenses from your LOC? That is a good strategy, especially if you have non-deductible debt. I think most people would be fine with this.Are you also asking if it is OK to borrow to pay the interest of an IP loan? I think this is possible myself and have sought advice on it, but apparently not all…[Read more]

Jacki wrote:
I can't help with any of the preceeding questions as am new to the game myself. However I have a question regarding unit trusts and potential dangers when splitting units. I have just a read a book that recommends (when negative gearing) issuing income units to the main income earner to gain maximum tax benefits from the loss and…[Read more]

not_so_lucky wrote:

Terryw wrote:
To make it simple this is basically what you do.You add up all expenses related to the property.Then you add to this non-cash expenses (These are things you can claim without actually paying for them there and then – eg. travel, borrowing costs, depreciaton of fittings, deprecriation of building etc).This…[Read more]