I knew someone that purchased a small unit in Kings Cross that was positively geared after tax deductions.

But I think you will be very hard pressed to find something without being creative. eg. renting individual rooms out, adding a bedroom, something with a granny flat etc.

Or you could wrap or lease option something to make it positively…[Read more]

I have a client who is buying and onselling quickly for a good profit. He is still doing this despite the current market – a few weeks ago he made a fair bit. There is still money to be made if you are willing to take high risks.

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

I don’t think there is much to it. He would want the new loan to be IO if it is going to be rented out. But PI if he is going to live in it. A LOC would be suitable for this, but you may pay a premium for this (try ANZ on their package deal). Or go for a loan with a redraw and pay only the minimum off the new loan and plough every thing you can…[Read more]

I asked a good account (Dale GG) about this a few years ago, and he said this still wouldn’t get around avoiding stamp duty. He didn’t really elaborate, so I am not sure on the details.

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

Noel Whittaker also has a monthly newsletter which you can sign up to via his web site. It is pretty basic, but sometimes has some good info, and always some corney jokes.

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

I have a few of those programs, but have just ended up using excel. Nice and simple.

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

Confused. You are probably aware of this but, don’t forget if you pay your dad, he has to declare the money as income.

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

Don’t forget that under Section 118-140 of the Income Tax Assessment Act, you can have 2 main residences for a period of up to 6 months.

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

I think the only way you are going to these figures is to ask the vendor or management company. These figures are not publically available or recorded anywhere.

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

There are plenty of shonky and hopeless brokers out there! I see them at training sessions all the time. Some don’t know the first thing about loans or property or investing. []

There are also a few building societies that refuse to deal with brokers for various reasons.[]

Overall I think you are better off in dealing witha broker[], as they…[Read more]

Unit trusts still cannot distribute losses. I beleive that a way around this is for the unit holder to borrow to buy units and claim the expense that way against their personal income. In this situation, you could probably a variation of your tax.

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

Good example Mortgage Hunter.

And many people like to use the strategy, buy move in and then move out and rent an equivilent property. It would be cheaper to rent, and you would also gain the benefits of negative gearing without paying CGT.

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

There is a Tax Determination available from that ATO that details what is a Principle Residence.

“TD51. Capital Gains: What Factors are Taken into account in determining whether or not a dwelling is a taxpayer’s sole or principle residence.”

Do a search in the legal database on http://www.ato.gov.au.

Terryw
Discover Home Loans
North…[Read more]

I wouldn’t think so, as losses cannot be distributed from a trust.

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

for further info on the 6 year rule see:
http://law.ato.gov.au/pdf/td95-009.pdf

and

INCOME TAX ASSESSMENT ACT 1997- SECT 118.145
http://www.austlii.edu.au/cgi-bin/disp.pl/au/legis/cth/consol%5fact/itaa1997240/s118.145.html?query=%7e+dwelling+that+was+sect+118+145

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

Bear

The six year rule is that you can move out of your PPOR and rent it out and if you sell within 6 years of last living in it, and if you have no other PPOR, then it will be CGT free.

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

Gmh454

I agree about the monkeys and the peanuts!

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

Hi again

An asset loan is one where the lender lends you money based on the value of the property only. No income is required to be listed. There are not many lenders that will do this, but one, RAMS, will lend up to 65% of the value. So in your case you could borrow 45% from your mum and the rest from the bank.

There are location restrictions…[Read more]

It may be difficult to open an account because of the 100 point ID requirement. However, many Aussie banks have branches overseas, so they be able to help. eg ANZ, NAB,

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

Hi again. You should buy “Trust Magic” by Dale Gatherum Goss if you haven’t already got it.

Some people have asked me about my statement above saying it should only cost about $60 per year for accounting-saying it was way too cheap. Many accountants charge a fee per property, I think mine was around $80 actually. So if you have 10 properties you…[Read more]