Trusts are usually worded very vaguely when it comes to beneficiaries such as: “The trustee and any, past, current or future spouse, children, grandchildren, adopted children, step children, blood relative…” etc.

If you specifically add a named beneficiary, then this may cause a new trust to be formed and that could be treated as a sale or…[Read more]

Dazzling, That was a good analysis!

G7 stick to your guns and don’t sign anything you do not agree upon. You may need it as evidence when you move out,

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

My understanding is:

Costs are deducted from profit (including stamp duty, legals, agents comm etc). This figure is then halved, if you have held the asset for more than 12 months. This fgure is then added to your income, and you pay extra tax accordingly.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Sex toys could be claimable.

( got this from Dale GG’s list. in one of his books. used to also be a list on his website http://www.gatherumgoss.com )

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

You probably should take the matter to the Residential Tenacy Tribunal in your state, get a court order for money owed and then you can chase them for the money owing.

Look at the Tenants Union of Tasmania website http://www.tutas.org.au/.

it is for tenants, but probably has lots of good information which you could use.

Terryw
Discover Home…[Read more]

If your income is not above $6000 pa, then you would receive no benefit from claiming as you would not be liable for any tax. However, if you currently have no investments, then you probably could not claim any of the seminar fees as they do not relate to your current earning capacity.

But I am not an accountant so may be wrong.

Terryw
Discover…[Read more]

Hi Michael

Good to see you did the course. Could you please give us a brief run down if you have time??

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

try http://law.ato.gov.au/atolaw/view.htm?locid='PAC/19970038/118-145'#118-145

SECTION 118-145 Absences

118-145(1)

If a *dwelling that was your main residence ceases to be your main residence, you may choose to continue to treat it as your main residence.

118-145(2)

If you use the part of the *dwelling that was your main residence for the…[Read more]

Try section 118-145 of the Income Tax Assessments Act 1997

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Yes renting instead of buying to live in can be a good idea. Renting a place can be around 50% cheaper than paying a mortgage on the same place. And then there are the repairs, rates, insruances etc which you do not have to worry about.

But just make sure you do not waste the money you are saving, otherwise you will be worse off in the long…[Read more]

Yes I think you get to have your cake and eat it too. ie it can be both a rental and still be classed as your PPOR – if you are not claiming another residence as a PPOR.

Check this with your accountant.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Paul hasn’t explained his reasons for wanting to prepay. It could be he has a capital gain this year and he wants to reduce his income to reduce this one off tax. Bringing forward expenses can do this.

Rob, I am not sure of the reasons that prepaying may not work. My accountant explained, but it went over my head.

Terryw
Discover Home…[Read more]

Just had another brain wave. It may be possible to claim the interest on money borrowed if this was used to pay for expenses related to the vast IP portfolio that you would have if contemplating this strategy. You could then live on your rent money instead of the borrowed money.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

All the ATO is interested in is establishing a market value for your property. There are various ways you can do this, including getting an agent’s opinion, keeping records of comparable sales etc. Having a valuation will only add to your proof. The valuation being for mortgage purposes only should not matter. It is up to how confident you feel…[Read more]

There are actually a few posts over on the somersoft forum on the topic of living off equity. Steve Navra has made a few replies which I am going to print out and ponder over.:
http://www.somersoft.com/forums/showthread.php?t=14486&highlight=navra+book

http://www.somersoft.com/forums/showthread.php?t=19649&highlight=navra+book

Terryw
Discover…[Read more]

Rob, Your couple want $200,000 per year!! I hope they don’t intend to live too long. If they only took $100,000 they could survive for 20 years (less actually due to interest). But there are other No Doc lenders out there too. Off the top of my head Peppers and La Trobe – yes both have high rates and are less than ideal.

But if the couple had…[Read more]

I just spoke to my tax advisor. He said it would be possible to claim the interest on the LOC if it was used to prepay interest on an investment loan. But there are various rules with regard to claiming of prepaid interest, so you may not gain any benefit if you do it incorrectly.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

SIS, I always thought self managed super funds had a maximum of 4 members.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I am not an accountant either, but I have spoken to my tax advisor about something similar. He said there is no requirement to pay cash for anything investment related, including interest, and you can claim interest on money borrowed to pay interest on investments.

This was informal advice off the top of his head, so he may be wrong.

Please…[Read more]

It seems this topic is being debated on two threads at the same time.
https://www.propertyinvesting.com/forum/topic/17535/3.html

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au