The best book i’ve read on PI is Peter Spann’s.

Terryw
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You can get 100% loans for investment properties too.

Another option is to buy an owner occupied, move in (and maybe claim the grant) and then move out and rent it. This can mean you may be able to avoid CGT as well as claiming deductions.

Terryw
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Some lenders also offer 100% finance for the purchase of investment properties – eg. St George.

Terryw
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The 6 year rule is part of the Tax Act, ITAA 1997:
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

Terryw
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Hi Bridge,

it is under s118.145 of the Income Tax Assessment Act 1997:

http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

Terryw
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PI will grow equity quicker, but it would be more efficient to pay any extra funds off your home loan as this is not deductible.

Terryw
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Richard, I think Carlin was implying he had to switch loan types to one with a higher rate.

Carlin – is that correct? I think the rate is a bit too high. Depending on the loan amount you should be paying around 7.37% with a major bank on one of the propacks. And Bankwest offer the Lite Plus home loan at around 7.35% – from memory, with 100%…[Read more]

Dino
Not always.
You may still have to pay CGT on your own home. Depends if it is more than 5 acres and if you have run a business at your home amongst other things.

Terryw
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Hi

What she could do is get a loan of up to 90% of the value of the property. This can then use this as 20% (or 10% etc) on a few other properties.

eg. if it is valued at $300,000, 80% of this is $240,000. This can be in the form of a LOC.

She then goes out and finds another property valued at $300,000 and gets a $240,000 loan on this and then…[Read more]

I think option 1 sounds good. You can increase your tax deductions and sell at a different time when the market is higher.

Terryw
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Hi

Why do you say you should have looked for postive cashflow property instead when you have done well from what you have done?

Selling investment property means you will have to pay CGT and there will be costs with agent’s fees and legals etc.

If you then use the funds released to pay off the home loan you will be saving interest (which is not…[Read more]

Your PPOR is the only tax free asset you can have. Not having one can mean you pay more tax in the end. I am all for having a PPOR, but not living in it – are you aware of the 6 year rule where you can rent out your PPOR and not have to pay CGT while being able to claim all expenses while it is rented?

Terryw
Discover Home…[Read more]

You just have to keep on saving hard and to try to add value while reducing expenses and maximising rent.

Terryw
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Terry@discoverhomeloans.com.au
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I’ve done a few – waste of time and effort in my opinion.

Terryw
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It can be dangerous buying with someone else. You should get a solicitor to draw up an agreement. eg. http://www.lawcentral.com.au has a joint property purchase agreement which you may want to look at.

Also you will need to jointly take out the loan, so you will be responsible for the whole repayments if he can or won’t pay – and vice…[Read more]

Generally you would use rent before any expenses and price of the house excluding any costs.

Terryw
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Depends where and what sort of property. generally in Sydney yields are around 3-4%, so anything over this is good.

Terryw
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Hi

You can make good money by building and selling, but can also make money frokm building and keeping and leapfrogging off the extra equity.

LOCs are good, they work on an IO basis. Each month interest is added. On many you may even be able to capitalise the interest up to the limit.

But to get a LOC you need property as security. They are…[Read more]

Originally posted by kylies:
Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus…[Read more]

I would prefer to pay down my home loan first, and then immediately redraw and invest. It works out the same, but you are increasing your tax deductions of interest.

Terryw
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