I agree with Richard.

There are 2 major LMI companies. It looks like one doesn't like that area, so you need to find a lender that uses the other LMI company which can do the area. Going to a lender direct, you wouldn't know who they use for LMI, so you could be wasting your time. That is one reason to use a knowledgeabe broker like Richard.

Hi1) No, generally, but there may be concessions if the property has been used as part of a business. Superannuation strategies may be available too.2) If you have claimed depreciation, then this is taken into account when calculating CGT – it is added back. Not sure how this all works though.

blueheeler wrote:
You are absolutely right, the only dif is the land tax concession.

Chan Naylor also claim their trusts are able to last more than 80 years.

Sunny8.30% is a bit high, you may be better off refinance even if they give you a discount.

HiEveryone (adult residents) gets the $6,000 tax free threshold.Some lenders, or maybe most, allow certain expenses to be added back to income for serviceability purposes. This can include non cash expenses such as depreciation, certain interest,, and one off expenses. have a look at his deductions and see if any could be added back and then make…[Read more]

Hi Richarda few weeks ago, RAMS also announced that they would require applicants to be registered for GST for low doc loans going through GE.

Da Man wrote:
Someone has suggested to me that it would be better to borrow the maximum I can for the value of the IP and use the saved funds that I otherwise would have used on the IP to reduce the debt on my PPOR, thereby reducing my non-deductible interest and maximising my deductible interest on the IP I propose to purchase.  

This is…[Read more]

May depend on where the PPOR and if it is in a potential high growth area.If you were to rent it out and rent yourself, you could take advantage of the CGT exemption rule for main residences, s 118-145 ITAA, and still claim costs (ie may be able to negative gear and save some tax). If it has the potential to increase in value, you could always…[Read more]

Hi BlueheelerI think these PITs are jsut hybrid trusts. ie a discretionary component and a unit component in the same trust.

Start saving like mad!You should probably try to buy a cheapy to live in for 6months, get the FHOG and then rent out after that. 100% loans are good, but you will need to come up with around 3% in LMINot many lenders will allow guarantors that are not related. Think RAMS does. Also, you should change over to full time asap as it will be difficult…[Read more]

Hi NicoleWhy sell your home to only buy more property? This means you will incur extra costs. Having you considered just increasing the loan on it and using this as deposits for a new more?For long term capital gain, I would prefer houses. Buildings depreciate, but land just keeps on going up (usually?). It is also much easier to add value to a…[Read more]

Yes, you just withdraw equity from the existing properties by setting up lines of credit and use this for deposits on the next ones. This way keeps them all separate and you can easily go to multiple banks. If you have any spare cash, this should be put onto your PPOR loan first to reduce bad debt, and then reborrowed for investment purposes.

Hi BSThis is a common question.Firstly, you will not be able to get any tax advantage by mortgaging your existing home now. ATO looks at the use of funds.So, you will have the existing home without a mortgage and will be renting this out. This will create extra income and you will need to pay tax on this.And you will need to borrow to buy the new…[Read more]

I beleive they can (if they trust deed has no restricitons)

Hi RichardThat's true, but the new buyer also has to be ok with purchasing the house in the company – though they could always purchase their shares in the company using a discretionary trust.

Hi Blueheeler,

If you are talking about the Chan and Naylor one, then I think this is a hybrid trust with a few modifications. Losses for these still cannot be distributed. It works like a normal hybrid trust – interest is claimed by the unit holder and the trust therefore makes a profit which can offset other costs such as depreciation, council…[Read more]

Hi Blueheeler, If you are talking about the Chan and Naylor one, then I think this is a hybrid trust with a few modifications. Losses for these still cannot be distributed. It works like a normal hybrid trust – interest is claimed by the unit holder and the trust therefore makes a profit which can offset other costs such as depreciation, council…[Read more]

Does your contract cover these sorts of things?

But, one drawback is that a company does not receive the 50% reduction in CGT for assets held more than 12 months.