It all depends.it could be nil if you do not own any other property.You need to tell us what it is worth now too? or what you can sell it for?

James007 wrote:
i didnt think you could pay pay off any of the principal on an IO loan??

If you were to pay more than the interest, this would come off the principle.. I think most lenders allow extra repayments.

Just think of the trust as another person. The trust buys the property and takes out a loan to do so. The money released goes to you to be used as you like. The trust can claim the interest and other costs as it is investment related. If the rent received is greater than the expenses, then the property would be positive cashflow and the income…[Read more]

Good work LisaCan you tell us how much of a bargin you got?

ANZ may be able to lend for 6 units on a residential basis, but probably the LVR would not be high enough to assist

Why not live in it from day 1 – this will establish it as your main residence. Once it is your main residence you can then move out and negatively gear and be exempt for CGT for up to 6 years while not living in it. s 118-145 of the ITAA 1997.If you do what you say, then you will be liable for CGT for any growth during the first 11 months (which…[Read more]

Also consider storing that 90,000 in a 100% offset account.  Does you loan have redraw? If so consider paying down the home loan (non deductibel) and reborrowing for the new investment – don't just use the cash.

One implication is you will be positive geared and paying tax while you are paying large amounts of non-deductible interest on the new one. Some people sell to enable them to move the proceeds to the new home, and then buy again borrowing to buy another investment property. Implications are: Agents fees, Stamp duty on the new IP purchase, loan…[Read more]

Most loans have the interest calculated on the daily balance and then added to the loan once a month. So when you deposit that $5000 you will be charged interest on $105,000 from that day onwards. The first month may see a small decrease in interest as the deposit may occur mid way through the cycle. The next month should have the full effect.

Interesting question. I don't think you can claim GST back on residential property expenses at all – but maybe wrong. I have never claimed any myself., but I may be wrong. It is just too complicated to understand.

These days most banks have professional packages with no application fees – just an annual fee which includes around 6 loans on the one fee. So there is no need to combining loans. I cannot see any benefit, just complications at tax time, and also if you wish to sell or refinance one with another bank later on.

Thanks guys. And there is Jon Salvador who lives up on the Northern Beaches (in Sydney). Jonchu is his stage name I think.

Some lenders/LMI do not like 'developers' at all. RAMS is one. I had people who had developed 6 houses and sold 2, they wanted to refinance 2 with RAMS who rejected it as they were 'developers'.

Probably it would be best to approach a few agents and hear what they have to say.If you decide to do it all yourself it would be a bit complicated. I guess you would need to combine all the blocks into one title and then strata or re-subdivide into the new sizes.In terms of stamp duty, you may get around it by having the final product owned in…[Read more]

Yes, drawing equity is borrowing money = bigger loans and bigger interest bills.But the interest for this scenario, borrowing to buy a PPOR, will not be attributable to the investment properties, but to your new home. Therefore the investment properties will remain the same in terms of tax deductions. It will be your new home that is severely…[Read more]

I generally would never buy a unit. You can have problems with strata issues and you lose control. Also buildings depreciate while land appreciates. With a unit you don't have much land content, so a house should be better in the long run.Another point – it is difficult to add value to a unit – such as extensions etc!

Another pointNot having a signed contract with the agent also doesn't mean the contract is not valid. You have been behaving as if you had the contract in place, so it may be valid. If so, you may have to meet the requirements on giving them a certain amount of notice that you are removing them as property managers.

And you can generally only class a property as your main residence once you have lived in it.

The compliance requirements for agents are pretty tough, so they are probably required by law to have these contracts in place before letting your property out and are now trying to protect themselves by getting this asap – but they have gone about it the wrong way.Start talking to some new agents and tell them what has happened. The new agent can…[Read more]

What about buying a PPOR now, getting the FHOG and Stamp duty concessions while they are still there, and live in it for 6 months. Then move out and rent it while renting yourself. Under s118-145 of the Income Tax Assessments Act you can still class this property as your main residence for up to 6 years while it is being rented out. And you can…[Read more]