Hi MarkLooks like your on a very good salary, so you should be able to save a heap – especially if you are only paying $15 rent.I would suggest you not put the spare money into the home loan as it can cause problems if you wanted to take it out later (from a tax POV). Why not look at using the equity in the existing house to buy a new house for…[Read more]

Simon C wrote:
Personally, I'd keep renting and buy a number of IP's with a strategy to increase your wealth over th long term. You do not get any incentive tax wise with an PPOR.

Simon, what about the CGT exemption for main residences? that sounds like a good incentive to buy a PPOR.But I agree that renting can be a good thing and it is…[Read more]

okkamooie wrote:
Hi MicmanOne of the goals of property development is to reduce non tax deductable debt and increase tax deductable debt.With this goal in mind, I would pay as much as you are comfortable onto your PPOR (Reducing your non deductable debt) and then set up a Line Of Credit for the investment property(s) and borrow 100% uning your…[Read more]

a lot of the low doc lenders have increased their rates more than the 0.25% recent RBA increase – some by as much as 1%.

Just looked this up, and it only applies to assets not having the necessary connection to Australia.http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s104.160.htmlI think you will still pay CGT in the future if you sell. The CG will be added to your income at that time, But if you are a non resident, then you may be paying higher taxes…[Read more]

Oh. Seek proper advice as just becoming a non resident may trigger CGT straight away.

First you work out if there is a loss (income less expenses)Income is $20,500Expenses$27,000So there is a loss of  $6,500This income, or loss in this case is added to your other income.So if you earn $100,000 pa (after other work deductions), then your new income will be $93,500.Your tax savings will be the tax on $100,000 less the tax on…[Read more]

I have recently made enquiries with ANZ for a client in a similar situation. Settlement need not occur on the same day. They can keep the loan open by depositing money into a term deposit – this will then act as security temporarily.Not sure if this would be available thru your lender.You may save a little in fees = application fees possibly, but…[Read more]

One of my clients has 3 properties x-col with CBA (before coming to me!). It makes things very hard.Even if your valuations come in a bit low you may be able to release a property by paying LMI. It may be best to bite the bullet now and start unravelling this and gradually moving out to a new lender.

Yes it is very common. Buying with people can dramatically harm your serviceablity. With joint loans each person is responsible for the whole debt. If one doesn't pay the others are responsible. The bank can start legal proceedings and eventually take assets of any one or all of the three owners.It gets worse, because banks will only take into…[Read more]

You still may benefit from transferring to a trust as this will free up funds which can then be used to pay off the new PPOR loan – if you have one. If you use a discretionary trust it may be that there is a loss which cannot be offset against personal income, but can roll forward to future years. Additionally you may be able to divert other…[Read more]

Wraps take a lot of work for little reward. You will make more money buy and hold – from my experience.Also, most lenders will refuse to lend if they know you are onselling the property on an installment contract. Even if you are using lease options you are supposed to get the lender's permission.

I think all of your assumptions in the first part are correct. But you will not be able to get multiple FHOGs on the same house, even with different people. The OSR will start asking questions and may even ask for repayment of the FHOG if the purchaser doesn't settle

A trust with one beneificiary is possible. It is called a bare trust – but the trustee cannot be the same as the beneficiary, otherwise it wouldn't be a trust.Discretionary trust deeds are worded in such a way that future children, spouses, step children, step parents, future spouses new spouse (eg. if you later marry and then divorce and your…[Read more]

Here are two private binding rulings from the ATO on the capitalisation of interest: Private Ruling 69725 http://www.ato.gov.au/rba/content.asp?doc=/rba/content/69725.htm   Private Ruling 63384 http://www.ato.gov.au/rba/content.asp?doc=/rba/content/63384.htm

Discretionary trusts don't get any land tax free thresholds in NSW, so owning in a discretionary trust may cost a fair bot more in Land Tax. There are also losses to consider. Trusts cannot distribute losses, so if your property is negatively geared, and your trust has no other income, these losses need to be rolled over until they can be offset…[Read more]

In Vic, previously anyway, you could sign a contract "and/or nominee" and then switch to the nominee's name at settlement with no stamp duty implications if you had a written agreement with the nominee before you signed the contract, whereby they appointed you to act as their nominee.

Not too many lenders would consider lending on a caravan home.  If you could get finance it would be more like a personal loan.Doesn't sound like a very good investment to me. You get no land, but only a building which depreciates as time goes by. 9% is not very good. You could put your money in a savings account and get about 8% without the…[Read more]

Don;t think there is any legal way of doing it. 

If you have borrowed to buy this property and it is income producing, or you are trying to rent it out, then the interest on the loan should be deductible.Are you also aware that you can rent out your home for up to 6 years and still not have to worry about CGT tax?