Strategy

1. wait

or

2. find someone to go in with you.

or

3. find someone to do the deal themselves.

You can never really rely on someone else.

I remember when I was in Thailand looking at a property and I couldn’t speak much Thai then, but knew some. I took a friend’s friend with me to interpret. I was asking “can I get a loan to buy this property” and she was translating “can he live alone here”.

You also really need to read contracts in the language they are in. A small misunderstanding can have far reaching consequences. Reading Japanese contracts takes a lot of energy. I had to put my daughter in hospital in Japan for an operation and had to sign various documents. Very worrying what you are signing when the language is not your mother tongue.

Wouldn't this qualify as a controlled foreign company (CFC) and be included in your Australian assessible income even if you had not received any income.

I dont' know the answer as this is too complex, but look at http://www.ato.gov.au/businesses/content.aspx?doc=/content/64063.htm&pc=001/003/129/001/004&mnu=44866&mfp=001&st=&cy=

Down sizing is good I think. You can speed things up dramatically.

If you have a non deductible loan and then use money in an offset that is linked to the loan then the interest would increase and it would not be deductible. Possibly best to pay down the loan to a certain level and then set up a LOC to use for deposits for the new IPs. Ideally you wouldn't want to pay down the loan at all, as it could possible become an investment property at some stage in the future. But this will all depend on the equity available. You might have to pay a large sum off the New PPOR.

Also consider which name the new PPOR should be in. If VIC there are opportunities to consider.

Yes, stamp duty and conveyancing costs. Whole new loan too. CGT may apply as well.

Dongbell, you would have to speak to your legal advisor about something like this.

If this is going to be an investment then I would suggest you borrow 105% even if you have the cash. You can structure this so as to save more tax.

You might also consider charging your parents market rent – even if you have to gift to them money to help them pay their rent.

The main difference is the tax consequences.

I would only ever recommend a LOC for using equity built up in a property to be used as deposit and for costs of a further investment.

Yes it may effect your borrowing capacity. If things are tight you can always just pay down the loan when required – the flexibility is still there.

Also keeping your loan interest only may assist with borrowing capacity as your monthly repayments will be lower.

Plan ahead.

Do you have a PPOR home loan or other non deductible debt? If so put your cash in the offset attached to this, or you will be paying higher interest which isn't deductible.