Hi Shaunwalker said

quote:You must remember though that they are not 100% tax deductable but a percentage of it is ie the GST on the books/courses are.

What do you mean there Shaun? I beleive that 100% of the costs should be deductible. (if it relates to your current investments, that is)

Terryw
Discover Home Loans
North…[Read more]

I think you may have to submit an amended return for the year in which the expense was incurred.

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

Spawn

I think deductibility is determined by the purpose at the time of the deduction. Eg you could buy a property, live in it, move out and then claim interest and other costs indefinetly if the property remained a rental proeprty.

I think you are thinking about the 6 year rule, which means you can rent your PPOR for up to 6 years, without it…[Read more]

Michael

yes, most banks assess you on what your current repayments are. So if you are using PI loans you monthly repayments would be higher which would mean you have less money leftover to invest, and therefore less borrowing capacity.

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

Some of my clients have done this, and it has worked well in the past because of the high growth in recent years, but I agree that it would be very risky to consider this strategy now.

Basically all you have to do is find another buyer, and arrange a simulataneous settlement. So you do have to settle, but you immediately settle with the person…[Read more]

Allan

If you move out of your PPOR and start renting it out, the interest should be claimable from the date that it is on the market for rent. (ie even if nobody is in there, as long as you are trying to find someone).

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

Firstly, you probably should not be investing in property using a company structure unless the company is trustee of a trust. SO check this witha good accountant.

If you do decide to use a company, it might also be wise to set up a new one. If the current company is a trading company, it could be the tartget of litigation (eg sued for a business…[Read more]

I would only use PI on investments if I have paid off my home loan. It is better to reduce non deductible debt first. Steve has a different strategy, where he likes to reduce debt. It depends on what makes you comfortable.

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

I have Tony Barton’s formula, but don’t like it as it gives too much to the tenant. Why don’t you use a % off the valuation at the time they want to cash you out, or a % of any capital gain? You will benefit more.

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

SIS, I agree with Julie. For HECS income calculation it is your assessible income plus any losses from property. So if you negatively gear and get a loss this can’t help you reduce your HECS payment, but can help reduce income tax. That is my understanding anyway-from a few years ago now.

Terryw
Discover Home Loans
North…[Read more]

Adam

it is not easy to buy many properties in quick succession. You still have to come up with deposits and qualify for loans. $40,000 won’t go very far, but should get you a few cheap ones. Then you just have to keep saving and/or wait for some growth to be the next lot.

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

Matt you could be right, But I was under the impression that Steve actually owned 130 properties as the one time.

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

It sounds incorrect to me.

You can claim the interest on a property if it is rented out and you have previously lived in it before. Whether it is positively geared of not is irrelevant.

I read the first book by that author, and she had little money saving ideas such as cleaning the rubber seals on firdges to cut electricity usage! Great stuff,…[Read more]

I did something similar while I was at uni, worked great!

And some of my tenants have subleased the properties. I didn’t care as they were still responsible for the property, and I still got my rent.

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

Shit. I wonder what they would rent for.

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

I agree with Scott. If it is an investment property, you should be able to claim 100% of the interest.

You may have been confused with interest verse repayment. Each repayment would have a portion of interest and a portion of principle. You statements should show how much the interest component acutally is.

Terryw
Discover Home Loans
North…[Read more]

Fullout

Using and/or nominee is different to options.

When you sign a contract and use “and/or nominee” after your name, then you have to option of nominating the purchaser to be someone else other than yourself. So it could be possible to ‘flip’ the property on to someone else without you have to buy the property.

But be wary of stamp duty.…[Read more]

Monkey Magic, I beleive the loan interest would be deductible if they moved out of their PPOR and rented it out as the purpose of the loan would then be for investment purposes.

But I agree with Mel that this is a personal decision and it is very hard to asnwer such a question without knowing your circumstances etc. (From a purely economic point…[Read more]

If your looking at country properties, it will be very difficult to get an 80% lend.

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

No.

You are just insuring the building. You only tell the insurance company of the bank’s interest because the property is being used as security. It doesn’t matter to the insurance company what the funds are used for.

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