you can have an offset account on an investment property.

Not unless it was a 3 way marriage.

From a tax perspective you should be borrowing to invest rather than using cash as you may need the cash for a private expense in the future and don’t want to tie it up. e.g. a new PPOR.

Where you should put the cash will depend on return and who owns the property. An offset account on a property owned by a spouse on a lower income may be the…[Read more]

I reckon you need to learn a bit more before you start asking these sorts of questions/

Yes, possiblly. But are you willing to risk the $400 per hour for a lawyer?

You must be rich?

$55k on a car is crazy – what will it be worth in 5 years?

If you purchased $55k worth of vangard index fund what would it be worth in 5 years, and how much income would you have received?

How could it be otherwise?

If you are buying a $600k property you have to pay $600k!

It looks like the interest rate is 6.87% which is higher than now by about 2% so this is good to factor in a few rate rises.

capital growth rate is 7% which is pretty high.

rental expenses are about 30% which is about right. Is the rent realistic for the area?

The software used is the PIA – not not pain in the arse, but property investment…[Read more]

Not for any overlapping time.
but if you sell the first within 6 months of buying the second you may be able to claim the exemption on both.

All title holders must be borrowers or guarantors of the loan.

But additional non owners could also be on the loan. However in Australia the general practice of the major banks is to allow non owner spouses on the loan in addition to the owner spouse. They wont allow this for non spouses = spouse includes defacto.

The ATO allows all the…[Read more]

Yes a non owner spouse could also be on the loan. Deductions will fall to the owner.

It s not a good idea to do this unless you cannot borrow on your own to get the property as it will double the risk and hurt serviceability

You don’t want to reduce future IP borrowings but the non deductible PPOR loan. Don’t worry about making the IP cashflow neutral by depositing cash in the offset as this will cost you money in more non deductible interest.

What you want to do is keep the cash in the IP offset temporarily and when you buy the PPOR work on a debt recycling str…[Read more]

There is also Propertunity in Sydney

1. Yes and yes, possible double duty. Will depend on the state the property is in and the circumstances. could be tax if there is a fee for the nomination or option agreements etc

2. no.

seek specific legal advice.

$100,000 property
$80,000 loan 1
$24,000 loan 2

Wait 2 years and then refinance loan 2 into loan 1. Free up $24,000 cash to use for the PPOR purchase.

—
IN 2 years the property may be worth $140,000. (maybe be a bit longer)
80% x $140,000 = $112,000 = enough equity

So you just increase loan 1 to $104,000 and use the $24,000 released to pay…[Read more]

Run it by your acccountant as there are many issues – needs to be a commercial transaction but this may enable you to claim more interest

$100,000 property
$80,000 loan 1
$24,000 loan 2

Wait 2 years and then refinance loan 2 into loan 1. Free up $24,000 cash to use for the PPOR purchase.

Of course it is. Borrow 80% from ANZ and 24% from your sister.

Yes, you are basically stuck as the loan has been made to purchase the property already. What you could have done is to use 104% in borrowings to keep the cash for the PPOR loan.

A way to increase borrowings is to sell between spouses – no stamp duty in some states such as VIC.

Benny’s right – the word “NOT” is missing.

interesting!