Getting rejected for my first loan and not going elsewhere was my worse mistake. If only I had purchased that property!Another was selling a good property to get into 'wraps'. If only I had kept that one!!!!!!! Oh no!!!!!!!!

That is just one strategy and whether it is smart or not would depend on your circumstances. Could you give some more details?

BrentThat is a lot of fees! Surely there is a better bank out there with no fees?

One of my friends had an apartment in uni lodge about 6 years ago – she was trying to sell it for about $120,000 then – which was what she paid for it about 4 years earlier.

From a lender's perspective, they will allow you to borrow roughly 5 times your annual income – including rents. Very rough guide.

ChappellI missed that, would you mind reposting!

What about finance?

negotiate vacant possession or they will become your problem.

CGs are just added to your annual income and you pay tax on this – so the rate will vary according to your income. If you hold the asset more than 12months, then you should be able to get the 50% reduction in CG too.

In Most cases the main residence will be exempt from CGT on sale. I know of no restrictions on who you can sell to – other than you must pay stamp duty etc at market rates.

have you considered getting both PPOR and rental?You could purchase a property, move into initially and then out again. Rent it for up to 6 years claim all deductions and still not have to pay CGT if you do it properly.

My interpretation is that you can have 2 houses as your main residence for a period of 6 months, with overlapping ownership, if you are moving from one house to the other.

It just comes down to minimising the expenses and increasing the rents as much as possible – and taking advantage of tax deductions.

You can claim a place as your main residence after you have lived in it first. You can still treat it as your main residence while not living in it and renting it out, but only for up to 6 years. If you move in and out again, then the 6 years starts again from the date you move out. Have a look at the Income Tax Assessment Act 1996, section 118-145.

Good points Linar. And you could still have a main residence rented out elsewhere, CGT free.

Hi FishkyFrom what you have written It seems that your parents are trustees. They are the legal owners. The beneficial owners are the beneficiaries which you indicate are your children. So if you want to access the equity, then the trustees will need to borrow. It is still possible (depending on the wording).If you can scan the deed in or fax it…[Read more]

Negaitve gearing is when you borrow to invest and the expenses are greater than the income received. Usually this is only done if you think there will be a capital gain.

You need to live in it first, as Tony mentioned, but the legislation does not give any minimum time frame that you must be in it before moving out, see s118-145 for absences:  http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

Generally you can only have one main residence at any one time, so if you claim the main residence CGT exemption on the one you are selling you cannot claim the new property as your main residence at the same time.But if you limit the cross over to 6 months, you may get the CGT exemption on both properties under s118-140 of the ITAA 1996,…[Read more]

caveat loans will be expensive – around 5% per month It will be hard to get a loan otherwise without a job You probably need a private type investor – share the profits if necessary.