Hi Anzac

It can be costly to sell a property. Did you take into account the fees (agents, solicitor, loan exit fees – these will be high on a no doc). Plus your father may have to pay CGT and you may too, if you are classing Brisbane as your main residence. But the CGT should be minimal if there is only a small gain.

But if you are struggling to…[Read more]

Crap.

Trusts certainly can get low doc and No doc loans. Multiple lenders allow Low Doc loans for trusts and companies. One that doesn’t however is ANZ.

Terryw
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yesfella

That’s alright if you got the same quality service, but what if it is actually costing you more in paying extra tax or potentially extra tax in years to come.

Terryw
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I’d be inclined to go option 1. Rent your house out, claim deductions and rent. This should save you money and also allow you to keep your house CGT free for up to 6 yrs (s 188-145 of the ITAA).

Terryw
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Terri,

Could you live in either property? Maybe you could move into one and sell the other?

If you do have to sell, maybe you should consider selling each in a different tax year.

And if you are getting the pension, watch out for any effects this may have on your entitlements.

Terryw
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option 2

Terryw
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I would be inclined to put extra money into a 100% offset account in case the future plans of your land changes. Buying a unit is probably not a good idea as it would be much cheaper to rent – my opinion only.

Terryw
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Mike from http://www.guardianpartners.com.au is a real expert in trust structures and property etc – formerly a poster on this forum.

Terryw
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I sacked my accountant because it always took him about 6 months to do my returns and he didn’t know his stuff. I now just do it myself.

Terryw
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You also need to take into account the selling costs such as CGT and exit fees, agents fees and solicitor fees etc.

Maybe it might be worthwhile to sell, pay off the home loan and then do another project. But you could also do something else, possibly, even if you held onto it.

Terryw
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Originally posted by Mortgage Hunter:
So to simplify things you want to sell a property to buy another property?

Sounds like a lot of fees for others …

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment,…[Read more]

Hi Casper

I think you may have purchased your property before CGT was introduced. I am not sure of the exact date, but beleive it was around 1985.

(Does anyone know?)

If pre CGT, then you could rent your property out and never have to pay CGT. And you could also have another property as your main residence and get the CGT exemption.
Whether…[Read more]

Sounds correct David. 80% of Current value less existing loans

Terryw
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All trusts are good until something goes wrong or they are challenged. Some of my client’s have Cleardocs Discretionary Trusts. They are drafted by Maddocks lawfirm which is a large well known firm.

By setting one up on your own you can cause problems if you do not know what you are doing.

Terryw
Discover Home…[Read more]

Have a look at http://www.lawcentral.com.au

You can form a company there for $99. (ASIC also charge a fee of $400). There are lots of tips and bits of information on that site.

Company Law and taxation is complex. Lots of stuff to learn and consider – eg heavy responsibilities of directors, rules on insolvent trading etc. You can get into big trouble…[Read more]

Hi Terri

Have you ever lived in either of your rental properties? If so, you may be able to sell that property CGT.

You could use equity from an IP to help with the purchase of a PPOR, but you just cannot claim the interest on this.

Terryw
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Generally you should probably just get a LOC on your property and keep the existing loan separate.

You then use this LOC to pay for the 20% deposits and stamp duty costs etc for each new investment purchase.

Terryw
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You can borrow against the land. I think there are even some 100% loans out there for land.

Terryw
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Thanks Michael

Terryw
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If you are only interested in buying one or two properties, and have a clean record, good employment etc then getting the cheapest rate may be the best option.

But if you are planning on buying a few more properties, then avoiding the securitised lenders will help later on.

And nobody gets the standard rates anymore. Most, if not all, of hte…[Read more]