mixedup wrote:

Terryw wrote:
I'd look at a IO loan with a 100% offset.

Can I pay extra however on such a loan to reduce it quicker, and hence lower interest quicker?

You can pay extra without penalty at anytime, but I agree with Richard – put the extra in the offset and it will save the same interest.Once you pay down a loan if you want to…[Read more]

Hi MookiThere are a few ways to do it, but one of the best is to set up a LOC (Line of Credit) on your existing property and to use this as deposits and costs for the new one.e.g say your house is worth $400,00080% is $320,000But you have a current loan of, say, $200,000This would mean a LOC of $120,000 could be established (subject to…[Read more]

Hi SuperWhether to use the cash or pay down the loan would depend on your long term plans. either way will result in the same deductions now, but if you are intending to move back into the Stanmore place, then paying it down would be the go as this loan would be non-deductible when you would move in again.

Have you considered buying a home, living in it temporarily and then renting it out. This way you may be able to claim deductions and still have the property CGT free. ie you get the best of both renting and owning.

I'd look at a IO loan with a 100% offset. I personally like the ANZ IO loan on the breakfree package. They are very good with their products and allow the broker to order the valuation (and receive a copy) and they are good for loan increases too.

Hi BaconThere is no right way to do it, whatever you feel comfortable with is the way to go. But I like an IO for a few reasons: -with an IO loan you can reduce your repayments enabling you to service more investments- Keeps your loan balance high so can claim more deductions- Can also save interest by putting money into an offset and then not…[Read more]

In VIctoria you will need a written agreement with the nominee before you sign the contract otherwise you both pay stamp duty. This was from a few years ago and things may have changed because people were just backdating the agreements!

I personally would just use an IO loan and pay all spare cash into a 100% offset account. This will work out the same (if you can control your spending) as paying into the loan in terms of interest, but if you were to ever move out, you would have a high loan and therefore greater deductions than you would if you had paid the loan down.However, if…[Read more]

you could probably claim 2.5% of the building cost as depreciation per year. Then you can claim the depreciation of fittings such as lights, carpets, curtains etc and you will be able to claim certain items of furniture, maybe full cost or depreciation depending on what the item is. it would be well worthwhile to get a QS in.

Hi SuperYour unit is worth $400,000. 80% of this is what you could generally borrow without LMI = $320,000. less your current loan of $280,000 = accessible equity of $40,000.You could then use that as a deposit and costs on another property – subject to serviceability etc.It may also be possible to just borrow 100% of the value of the new IP too,…[Read more]

Hi DanI would say, estimated, the following:468.5-280 = profit of 188.5Less purchase costs of $37k = 151.50k (don't forget other items such as travel to inspect it prior to purchase, agent's fees etc)If held for more than 12 months, then 50% discount = $75,750 capital gain. This would be added to your income for the year and taxed accordingly.

HiI would suggest you get an interest only loan since you are planning to rent it out. Having a 100% offset account attached would be great as you could still save interest without paying the loan down.

Hi AdamYou should get another opinion on changing the deed maybe as there are huge costs with stamp duty and CGT involved.Usually if you transfer (sell) an investment property from one trust to another, then there would be stamp duty and CGT – if there is a gain. but CGT only applied to properties purchased after a certain date – around 1986(?).…[Read more]

HiI am no tax expert but think Captial gains cannot be used to offset income losses. eg if your trust has a property which is negative geared, then the loss is just rolled forward each year until there is income to offset it. Captial gains are not classed as income, so if the property were to be sold, then the loss could not be used to offset the…[Read more]

Hi PaulIs the IP loan interest only? You could also make your PPOR loan interest only as this would help reduce payments.You may also be able to increase your PPOR loan to 80% LVR and to pay some of the investment expenses from that increase – but based on the values given, you may be only able to increase it by $10,000.If all of this doesn't work…[Read more]

Just  be careful. These things often end up with friends no longer being friends. Discuss what happens when one wants to sell, or get out of the deal – how will it happen, what price, what if others don't want or cannot buy them out etc etc.

Just think of the trust as a person. They own the property, so any rent they would get would be income and any deductions could be taken off this income, including depreciation. If there is a loss, it is stuck in the trust – just as if you had a loss personally, you couldn't offset that against someone else's income

Just think of the trust as a person. They own the property, so any rent they would get would be income and any deductions could be taken off this income, including depreciation. If there is a loss, it is stuck in the trust – just as if you had a loss personally, you couldn't offset that against someone else's income

You can only claim a place as your main residence once you have lived in it. ie you can move out and still claim it as your main residence. But if you previously did not live in the property, then you cannot claim it as your main residence until after you had mvoed in.

Yes you can set up a business.Stamp duty must be paid up front in most states, but CGT can be delayed until about June the year after the tax year ends. However, if you are in the business of trading in property then you may be taxed on the profits as income  – not capital gains.