I am no accountant, but believe this is possible. You have to be careful though. The ATO has been looking at these sorts of arrangements and can disallow them if they think you have entered the scheme with the dominant reason to save tax. Ways to make it stronger include:
– Doing it for asset protection reasons
– The trust holding other assets
-…[Read more]

I have all my loans as variable – except one which I did 4 years ago. With fixed rates, you lose flexibility. Exit fees can be high, making it harder to increase loans or move banks. Also the rates are slightly higher than what you would be paying under variable.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
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well, if those properties are worth $1,700,000 and say they are growing at 5%, that works out to be $85,000 pa. If they take a small portion of this each year and factor in the added interest they will have to repay, they should be able to keep their properties. They may even be able to retire now.

Steve Mcknight doesn’t like this idea and argues…[Read more]

Originally posted by vyaw2003:
Hello,
This website is all about houses. which return 6-8%, after rates and body corporates. Just covering repayments.
What about these investment bonds i see in the Sydney morning herald. $5,000 minimim 1 year minimum returning 9-12%. Anyone used any of these? Which are the best? Are they no risk (eg. it is…[Read more]

You would have to calculate what you could get in rent for your place and the tax savings. If you are not going to be saving much, then it is probably not worth disrupting your family.

You can still live in the place and use the equity to invest further.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing…[Read more]

I have the exact same problem, and having done anything about it because of the hassle involved. Court order for $1600 in my case.

You need to do all the checks you can think of, including:
– ring references listed on their application for tenancy
– ring last known employer, relatives
– whitepages
– electoral roll
– internet search

Sometimes…[Read more]

But how many are leaving per week?

Terryw
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Parramatta
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Originally posted by Mortgage Hunter:
Originally posted by JohnSmith:
Good advice there from Simon

just add the preferred way is to say the money within a mortgage, as it is more tax effective.

Regards
John

Inspired Finance
(02) 9944 7776

john@inspiredfinance.com.au
http://www.inspiredfinance.com.au

John,

My preferred way is to save it…[Read more]

Many loans are able to do this, or better – capitalise all the interest up to the limit.

Terryw
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Parramatta
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Estate Agents (General, Accounts and Audit) Regulations 1997

http://www.austlii.edu.au/au/legis/vic/consol_act/eaa1980145/

See Part IV, s 58 onwards

Terryw
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Parramatta
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Hi Andrew

I am no expert, but would expect if you did this you would be paying stamp duty on 99% of the value of the property when you switch it over again.

A far better option may be to look at a Hybrid Discretionary Trust to own the property. This will enable you to claim the negative gearing benefits and for your wife to get the capital…[Read more]

Originally posted by paulusi:
Terry, thanks for your comments.
yes am highly geared.

i cannot just sell one, as you can see the properties are cross-collaterilised to each other, if i sell one i have to come up with CASH to COVER THE SHORTFALL on the other property to make LVR stay at 80%, and i don’t have that much money to cover that. so…[Read more]

Originally posted by row:
Thanks Terry for your reply. Seems that our only option to upgrade is to sell our home….

Or just keep it, and change the loan to IO, and just wear the extra payments on the new loan for the PPOR. This may end up cheaper than selling the old one.

Terryw
Discover Home…[Read more]

Hi Daniel

My understanding is that original the loan on the property will be deductible. The purpose of this loan was to buy the property. WHen the property becomes income producing, then this loan should be claimable.

But any increase used to buy consumer items or a new PPOR will not as it is not related to money making.

Terryw
Discover Home…[Read more]

Hi CT
Yep, since the unit holder is only borrowing 80%, then LMI won’t (usually) apply.- It may be charged on some low docs loans however.

Banks won’t perceive it as more risky, same rates etc apply.

Terryw
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Parramatta
Terry@discoverhomeloans.com.au
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Just send me a blank email, with…[Read more]

Just got my free sample chapter in the mail.

Terryw
Discover Home Loans
Parramatta
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Just relooking at your figures, you are pretty highly geared, but just because your properties are cross collateralised doesn’t mean you cannot sell one or two. You will just need to change the security on the remaining loans. But x-coll makes it messy.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing…[Read more]

Hi PTN

I am not an accountant and do not have a HDT, but I think it would work similar to this:

Trust has made a $15,600 income from rent. But there is a $8,000 claim for depreciation. This makes a net profit of $7,600 (assuming no other costs).

This profit would need to be distributed to the unit holder to justify them making money to be able…[Read more]

You can depreciate items that are used in producing an income, even items that are owned before the production on income. If he has never heard of a depreciation schedule, then he can’t be very knowledgeable about taxation, so you may be missing out on more deductions. ie his/her ignorance may be costing you money.

Terryw
Discover Home…[Read more]

Row, refinancing will not help, as the original purpose will be the same – taking money out for the new house.

Selling the house (from husband to you) may be an option, but will be costly. Firstly stamp duty will apply and will be a lot. So you have to weigh up the savings in tax against the cost of this. Plus legal fees, loan exit fees, loan…[Read more]