No thanks.

in WA transfers can be made without duty where the property goes from 1 spouse to both spouses equally if the property is the main residence.

Plan ahead for some strategies.

leads for what? Selling property, broking, tax?

You could put money in an offset at any time.
Keep in mind you would want any cash in the non deductible home loan. Even though the interest may not be deductible now for this property, it can be used to reduce CGT upon sale.

1. Wouldn’t have advise that you do it like you did. You are both exposed by going on the contract jointly. OTP is very risky and if you cannot settle you will both be sued. You could have done the contract in one name and then settled with 2 on title or 1. More flexibile and less risk.

All owners need to be on the loan, but where 1 owns both…[Read more]

1. impossible to answer without information. Keep in mind negatives tend to become positives (otherwise no point in investing)

2. Only a legal owner can mortgage the property. I think you mean ‘loan’ here. Yes with some lenders – but should you?

3. If you are spouses the interest may be deductible to the legal owner even if both on the loan TR…[Read more]

Thanks D.T.

wow, great posts guys.

D.T. do you find properties for buyers – like a buyers agent?

it will vary depending on whether you are living in it or not. It would be unusual to have no rental income unless you are living in it.

You could have deducted the capital works costs if it was a rental and the property structure (etc) was built after a certain date – 1997 i think. In this case it needs to be added back when you sell, even if…[Read more]

even if you do not claim the depreciation it would needed to be added back for CGT purposes. It is only the capital works deductions too.

Why not call BMT or depreciator describe your property and they will tell you if they think it worthwhile getting one.

no.

Yes CGT would be assessed at market value.

What state is the property located in?

A tax agent or lawyer would be the person to get this advice from.

If you sold 50% to her and she later sold this 50% for less than the cost base there would be a capital loss.

What are you trying to achieve with setting things up like this and planning to change mid stream? Or have you already settled on the property?

I am not an accountant, but here are my answers

1. maybe. I would suggest you avoid joint loans completely.
2. not so clear cut because you would be borrowing to pay out a spouse’s share of the loan and she didn’t use her loan to purchase an income producing asset.
3. depends how you transfer. Assuming your loan was deductible to yourself in full…[Read more]

Just tread it the same as you would buying off a stranger. Make sure there is a full written contract and use separate lawyers.

The land under the second house would not have been the main residence since its acquisition.

The 1 year only relates to the 50% CGT discount – which would be calculated from the date the land was acquired usually.

Many brokers have access to that product under different labels. There is a product ruling from the ATO saying that Part IVA won’t apply. But just check that the names on the product ruling match the names for the company offering it to you.

There is a VIC case, from memory, where the SRO took on a person in a situation like this, based on the amount of electricty usage.

I suggest you read the act in full. You are not being prosecuted at this stage, and they may not be able to prosecute because of time limits.

This rings a few alarm bells to me:
students
CBD
warehouse
apartment.

What does it return after all expenses, including 105% borrowings, and how much do you expect it to grow in 5 years?

The accountant is wrong.

The 6 year rule relates to absences.

where you split the land of the PPOR and end up with 2 houses the main residence exemption can only apply to one of those houses at any point in time. The portion of the land and construction cost for the new house cannot be eligible for the main residence exemption (until after…[Read more]