Also have a look at the next article in the Bantacs newsletter: Shifting Non Deductible Debt to Business Debt

FrostyYou may also want to look at salary sacrifice too if you do not want to use a trust. see http://www.bantacs.com.au/newsflash/current_issue.pdf

Hi CJYes you can claim interest on vacant land. Do a search for "steele" on the ATO website. The was a legal case involving someone called Steele and the claiming of interest on vacant land. Steele won!

Who is your current loan with? You could probably use that home as additional security to borrow the lot. Then when the money from the sale is released put the excess funds into the loan or an offset account.St G also can do construction loans on their 100% product.

It is possible, but difficult. I haven't done it myself, but some of my clients have purchased propeties considerably under bank valuation – one guy I was talking to this morning paid $180,000 with the value at $250,000. Another purchased for $40,000 for cash with a valuation soon after, for mortgage purposes at $120,000. etc

Capital Gains tax is the main one as well as legal fees, agents fees etc.CGT will depend on your other income etc at the time. If you have held the property for more than 12months you can get the 50% discount too.It works roughly like thisCG – buying costs – selling costs – depreciation claimed = Capital Gain.This is then dvided by 2 and the…[Read more]

You just have to work out what is best for your situation. And go with what suits you.Trusts don't pay any tax (unless the income is not distributed), they just distribute income to the beneficiaries. So if a CG is distributed to an individual they would be entitled to the 50% discount (if asset held for more than 12months). If to a company, then…[Read more]

If your house is worth $500,000 just times this by 80% and minus your existing loan. This will give you the amount of usable equity without having to pay stamp duty.

There is no real way around it. You have paid down a loan so any redraw would be classed as new borrowings and the interest will only be deductible if you use the funds for investment purposes. That is why it is best to use only IO loans with a 100% offset account attached to at least one of your loans with any extra cash going into this…[Read more]

I think it is only stamp duty on mortgages – not land unfortunately

The ATO site is back uphttp://ato.gov.au/individuals/content.asp?doc=/content/20046.htmIncome of individuals under the age of 18 …[Read more]

You want to sell one property to buy another?If you sell your home you will lose the only CGT free asset you can have.Have you done the sums on renting this one out?What about just using some of your equity as deposits on 1 or 2 investment properties.

Hi FrostyWage earner's could still be sued. One of my friends went crazy on her credit cards. She is being sued by various banks and will lose all her properties. If they were in a trust they would have been safe. Or you may have had some a drink and then have an accident, insurance may not cover you if drinking etc. And then there is the famous…[Read more]

If you have done well on building, why not just build another?

Paying PI and paying extra means you probably could afford to buy another. Just cut back to IO.BTW< if you still have a loan on your main residence, then you should not be paying PI on an investment. I wouldn't pay PI on any loans myself.

frosty1 wrote:
HI ALL,i have been interested in the 'trust verses own name structure' for a while now and i am still unsure what is best.does anybody know anyone that has actually been sued and lost their properties or assetts?in a trust property expenses and losses cannot be claimed against personal income.who else would you want to pass income…[Read more]

Ring up and complain. Have a read of your agreement and see what it says – probably doesn't mention a time frame on when your house will be advertised, but I would complain anyway.

PosEnterprises wrote:
Is it true that the finance is higher if you borrow through a trust though?

No

Yes, you can make a claim via the administrator. Find out whot that is, maybe do an ASIC check and give them a call to see if they can tell you over the phone, or you may need to request the relevant documents. Once you find out who they are contact them. Also read you r guarantee contract – it may say something like the guarantee ending if the…[Read more]

Hi CJWhy do you say that "obviously" the interest on vacant land is not deductible when it certainly can be, if you are, or intended to, own the land with investment in mind? If you borrow money to buy shares then it sounds like you are borrowing for investment purposes. Taking money from a redraw is the same as borrowing. i would be claiming the…[Read more]