dontcross your securities as it gives no advantage to you but benefits the bank heaps.
hy are you wanting to put wife down anyway
. is your income not enough to service? you should avoid this where possible.
should be no tax issues with adding her on the loan though

yes the interest would be deductible but don't use redraw as every subsequent repayment would also be reducing the investment portion as well. you should set up a separate split. if u dont you wont be maximising deductions.

no time frame. just keep paying the interest each month. then when your ppor loan is gone then u can start paying off the investment debt

is this the contract to purchase land or to build?

probably difficult and costly to borrow that high and the extra will not bedeductible

rhi pg
t is good to have different views on things.
still recomend trusts over companies for investing . i would even advise against using a trust for reasons outlined above. but it is up to the client which way they go and a company could work out better for some limited circumstances.

Amsaimi I think you may be conflating two separate issues.

The first is borrowing to pay general expenses. This should be ok

The second is borrowing to pay interest. This is capitalising interest and is also generally ok. But the Ato has said it is not ok if you are doing it as a scheme to pay offf your non deductible loans sooner.

I am a solicitor based in Sydney CBD and have purchased a few properties of my own over the years, and sold.

None of my law clients have ever asked me if I am an investor or not. I don't know if it really matters too much, especially in regards to adding clauses to a contract.

I am overseas in japan at the moment so amd not available for any conveyancing work but will be back in a few weeks.

I assume that the granny flat is on the same title as the house? If so both tenants will need to buy the wholre property jointly. Or maybe you are approaching each separately about buying the whole place??

1. A contract for the sale of land.
2. They would have already entered into an agreement to buy and exchanged contracts. If they did not follow through and settle then they may lose what they have put in. But this could be challenged in a court as it may be inequitable.
3. Maybe
4. The biggest thing that can go wrong is that they stop paying you and you have to 'evict'.
5. Maybe work out some figures and then go to see them.
6. yes
7. Possibly means they are on a low income which may mean you need to assess whether they can afford to buy the property.

Also you must think about how much you are potentially losing. What if the property increases in value. You won't benefit but the tenants will so you are essentially giving up future capital gains to save some minor expenses now.

You also have to look at if you need a credit licence to be able to offer credit.

Might also want to consider a lease option.