yes

Terryw
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Terry@discoverhomeloans.com.au
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If your intention was to hold the land as an investment, then I believe you can claim everything as you would on a investment house.

Previously the ATO did not allow it, but there was a case many years ago, I think Steel’s case which changed things.

Terryw
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Terry@discoverhomeloans.com.au
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Duckster, don’t think that would be true or even possible. Austrac records transactions of money movement. deposits and withdraws of large amounts, overseas transfers and suspicious transactions. It doesn’t have any information on employment, declaring income etc. Many years ago I was an active user of Austrac.

What the ATO can do is look at the…[Read more]

Yes, he was a great guy and he did take to shares like a duck to water. At one stage he was trading and making massive profits and produced the trading statements to prove it.

Terryw
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Terry@discoverhomeloans.com.au
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Harry

I think you miss a few points on wrapping.

It may actually be good for the wrappee to go under after a period of paying. This may mean the wrapper gets to keep the deposit and payments and can re wrap the place.

Wraps are not for everyone. If you can get finance then you would not need to think about being a wrappee. But there are many…[Read more]

If you pay extra off the loan on an investment, then your money is trapped. If you redraw and use it for personal reasons the interest is not deductible and it can create an mess.

A better way would be to change the loan to IO and to use an offset account. It will have the same interest saving effect but keep your deductions high if you use money…[Read more]

I don’t understand it either.

Some application forms do not specifically ask for the applicant to list all loans guaranteed as well as those taken out in personal names.

However, a credit check will show up guarantees as well. If it does, then the lender may ask questions – not always though.

Terryw
Discover Home…[Read more]

you might need both. a superfund will beno good for holding property that you need to borrow for as superfunds cannot borrow.

Firstly ash your accountant why they are suggesting that. If it doesn’t make sense, get a second and thrid opinion.

Terryw
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Terry@discoverhomeloans.com.au
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Oh, yes, you could claim the interest, but have to declare a rent from your mum. maybe you could give her a discount for keeping an eye on your share – legitimately.

Terryw
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Terry@discoverhomeloans.com.au
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Why not change your current loan to interest only. This would reduce the repayments to $425 per week. You could also set up a 100% offset account and keep all spare cash in there to save interest. This will also keep tax deductions high in case you never move back in. You may still be able to claim the place as your main residence and sell it CGT…[Read more]

I think you could claim the interest. Your mum is really renting your share of the property, whether she is paying you or you are gifting it to her. But this also means you may be liable for CGT later on.

Terryw
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Terry@discoverhomeloans.com.au
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Wow that is lucky.

I think you can claim depreciation as it is based on the value, not what you paid for it.

Were you receiving rental income before you owned it? If so, that is a bonus, but I don’t think you could claim things at this stage – it would be like you renting it and subletting it out. You would probably have to declare the…[Read more]

I am just working on a few construction deals with St G at the moment, and they have indicated they will go at 75% of end value – this is for a owner builder too.

Terryw
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Terry@discoverhomeloans.com.au
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CT

In Richard’s eg they would take the 20% deposit for the IP from the LOC on the PPOR.

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by condog:
Ross

My accountant confirmed what you are saying about discretionay trusts being at the discretion of the appointor, but both said the rules of distribution patterns still apply and fluctuating or rapid changes in distribution pattersn would attract the wrath of the ATO.

Id be real interested if anyone else in here…[Read more]

You should probably talk to an accountant to set up a trust – especially if your intention is to use it for investment. See what your conservative guy says and take it from there.

Terryw
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Terry@discoverhomeloans.com.au
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The trustee is the owner of the property. So this is the name that is on title. When you sign a contract, you can sign TIA ATF (as trustee for) XXX Trust, but it is only the legal name of the trustee that is recorded on title.

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by fallboy:
I set up a trust and a company as trustee about 18 months ago against the advise of my accountant. I only have 1 ip in the trust and really cant see an advantage. Just some higher accounting bills is all. Maybe when I get more ips it will make more sense but at this stage I have to say that my accountant was probably…[Read more]

Why? Do you think you will be getting a bargin?

There doesn’t seem to be any way to find this out other than to ask the agents. Sometimes they use this as a selling point trying to attract people who think they maybe getting a property undervalue, but it doesn’t really work like this.

Terryw
Discover Home…[Read more]

I did 3 and wouldn’t do any wraps again. Low profits and higher hassles. Maybe different if you are doing many more like Richard – economies of scale perhaps.

Terryw
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Terry@discoverhomeloans.com.au
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