I agree with Linar. They are your agent which means they are 'you', or acting in your place so you should be able to see the details if you wish.

You can generally borrow around 5 to 6 times you annual income. Rent can be taken into account and interest deductions too if purchasing an investment. Let me know your income and I can give you an estimate.

Maybe the accountant is thinking of using the main residence option to avoid CGT completely. You can only be absent for up to 6 years so would need to act soon. If you have a large debt on your new house selling would probably be a good option as you can pay off this non-deductible debt and reborrow to buy more property. Work out if the interest…[Read more]

Hi IPI would say no, you cannot claim the interest as your bills have already been paid. It is a bit of a grey area though. Maybe you could get all your bills to you direct so that you could pay them yourself, except for the management fees – but maybe you could work something out with the agent about this too as it will help you to save interest…[Read more]

Hi CJThe problem when taking a redraw from a owner occupied loan is apportioning the interest. it won't matter so much if the whole loan is for investment as you will be claiming all the interest anyway so if you get the portions wrong you will still arrive at the same results.I would calculate it as a percentage. eg. if the total loan is $60,000…[Read more]

Swany wrote:
I think this may have been touched on before so apologies if I missed it. Can you property gurus help?Current residence worth $360 – $380KCurrent Mortgage $200K P & I – no off set accountRedraw available up to $326KWill rent for $300.00 PWLived here 3 yearsI am planning to reduce the mortgage to $20K, soon then in about 12 – 18…[Read more]

Hi HybridYes, I would suggest you look at setting up a LOC on your home loan. Keep the existing portio separate and use the LOC solely for investment related purposes such as deposits and property costs.

Many lenders will only lend to self employed, on low docs, and the best way to prove self employment is through an ABN. ABN's can be checked at http://www.abr.gov.au and this will show date of registration and date of GST registration (if any). There are some low doc lenders out there that do not require an ABN.The ABN doesn't have to be for the entity…[Read more]

The land value of a unit is relatively small (because many units sharing the one block of land), so Peachy is probably under the threshold.

TenorBbI wouldn't recommend a LOC for your general loans either, but would recommend setting one up for any spare equity you have.Investment expenses and costs can then be borrowed from the LOC freeing up cash to place into your non-deductible home loan.However, Your two properties value at $604,000. 80% LVR is $483,000, but you have current loans…[Read more]

Yes, that is right, you don't actually earn interest – or are not paid interest, you just save interest on the loan.

McNorman wrote:
does anyone know if u can you keep youre FHOG if you buy an IP through a trust in QLD?

I have a client who purcahsed an Investment through a hybrid trust in QLD, and he has just purchased another home to live in and he has applied and received the FHOG in QLD.

Also look at this tax ruling:TR 1999/D3 Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities http://law.ato.gov.au/atolaw/print.htm?DocID=DTR%2FTR1999D3%2FNAT%2FATO%2F00001&PiT=99991231235958&Life=19990210000001-99991231235959

Hi MixedupI clicked on the link in your post, but it brought me back to this post.I agree with Richard again. Once you have paid into a loan, redrawing money is considered new borrowings and the interest on this new borrowings will only be deductible if the money redrawn is used for investment purposes.

What is a SBA 504 loan?

HiWhich type of trust you should use will depend on your exact situation – maybe a unit trust (as 2 parties) or a discretionary or a combination (hybrid) or both Unit trust with units owned by your discretionary trusts (one each).You should seek some professional advice from your accountant in conjunction with your mortgage broker when setting up…[Read more]

Hi MixI don't think it is important to have the loans with different lenders – usually. Even if you keep them with separate lenders, both will be at risk if you default on either loan.I also agree with Richard that it is not wise to redraw from a PPOR loan for investment purposes as it will be hard to separate the interest. But there is another…[Read more]

You could possibly sell part of the property to your wife or trust over a few years to reduce the tax burden.eg a third each year for 3 years. It may also be possible to sell using an option. eg. if selling for $300,000 you could sell an option this year for $100,000 with an agreed price of $200,000 with settlement next year. This would split the…[Read more]

I cannot see the point in using a LOC, other than to release equity which can then be used soley for investment.It would be disasterous to use a LOC for personal expenses and to then use it for investment related payments as well as this will cause all sorts of tax problems.

Is your new house going to be your main residence? If not, it would not be wise to pay the loans down. Selling maybe a good idea. But don't rush into it as you may be just selling one property to buy another and incurring costs unnecessarily.Trusts are still the best structure for asset protection available. Your accountant may be referring to a…[Read more]