Ok, thats good.

I am concerned because you are asking for tax advice to a bank and even more worrying is that they gave that advice.

That concerns me.

You will have to instruct the bank. but it won’t be based on land alone but building costs as well.

As a trust lawyer and a mortgage broker of 15 years all I can say is see Richard’s post!

3. Correctly apportion the loan according to the land split and the build – based on size and cost. You cannot articifically allocate more interest to the investment loan.

No need to have more than 1 offset unless you have a shit load of cash.

Offset the non deductible loan first. If none are deductible then offset the highest interest loan. If you have different ownership of IPs then offset the loan in the lower income earners name.

Never join loans with different purposes.

Check out the sales of goods act (NSW) – if the parties in NSW

Yes, but you would have known from the beginning that there was no vacant possession as this is part of the contract. Is there a lease in the contract?

If the buyer did not pay the buyersagent that means he eiter worked for free or he was a sellersagent/commission based sales person. Off the plan commissions generally start at around 4% and go up to around 10%.

You must have a cashflow problem in the eyes of the banks, otherwise you would qualify for servicing.

Sam, if they moved in straight away the property could be CGT exempt, and they could use the 6 year rule to continue with the exemtpion once moved out.

Wilko – that is a good point. I have seen people in the past who had to move out of their house on the day of settlement, but the tenants of the house they were purchasing had failed to find a new…[Read more]

yes as Jamie says how bad do you want the place – a few weeks paying double rent would only cost around $1k extra??

Yes, souds reasonable.

Why not offer to ‘rent’ the place prior to settlemennt if the tenants were to move out.

This is not true for all states. If the property is in VIC you could be in luck.

You dont actually ‘use’ equity but borrow money so the rate will depend on the bank and loan product.

As a lawyer and a mortgage broker I would say it isn’t true – or there is more to it.

You must have missed my comments about buyers agents above otherwise he wouldn’t be the only person you have heard from.

I agree that costs for others won’t be deductible. I haven’t heard anyone suggest changing ownership just so that a trip could possibly be claimed…

$485k x 80% = $388k

Less currnet loan of $285k = $103k in potential useable equity, subject to serviceability.

You should set this up as a new loan, preferrablly a LOC or an IO loan where you can redraw.

This can be used for costs, but don’t use this to pay for the interesst on the new investment loan as then you would be borrowinng to pay…[Read more]

That canberra story doesn’t make sense Banks generally do not care who the seller is, it may be the valuer who wanted to know for valuation reasons. The agent would be clearly on the contract of sale and whether a buyers agent was used or not sure be of no concern to a lender.

I have bought about 1o properties through buyers agents with fees of…[Read more]