Ok, true about the claiming of the rent.

Income the SMSF makes is not tax free. The rate is 15% for most income. eg. rent received by the SMSF is taxed.
The SMSF also pays CGT. if it sells a building it pays CGT at the rate of 15% or 10% if held more than 12 months.

Then there is the time when you are receiving a pension or a lump sum from the fund when you have met a condition of release.
If you are drawing a pension and the fund is fudning this by selling a property it can be sold CGT free. your pension should also be tax free to you too, generally.

I meant with a broker too.

Where are you located? I know an excellent accountant in Sydney. PM me for details.

After 6 months one will have CGT applied to it. From memory it is s118-140 ITAA 1997.

Cross securitisation is simply using 2 securities for the one loan. So if there is a default the lender can take possession of either property. It also ties you up and restricts your borrowing ability as outlined by Richard.

There is no reason to cross.

Best to use a broker  think,

Using different lenders will help a bit, but you will come to a time when you are maxed out. Increasing the rents and your wages will help but it can be a slow process.

You could elect to treat the flat as your main residence and claim the CGT exemption for 6 years and pay little to no tax. But this would mean your new house would be subject to CGT up until the flat was sold.

Or

You could treat it as your main residence until 2008. This is going from main residence to investment property so a valuation would be needed for the time you moved out, ie in 2008. S 118-192 ITAA 1997.

Catalyst is wrong because the proportion calculations only apply when going from an IP to a main residence, s118-185 ITAA.

Only a licenced valuer can give a valuation.

Say it was worth $200,000 in 2008. You sell for $250,000 = $50,000 gain.

Deduct buying and selling costs say $20,00

Gain is thereby reduced to $30,000

Apply 50% discount = $15,000

This $15,000 is added to your taxable income and you would likely pay a max of $7,000 in tax.

I am not an accountant so this is probably incorrect.

Well put Richard.

And then these friends will also talk about you behind your back saying how 'lucky' you were because you invested in xxx

Just make sure you focus and don't get sidetracked from your plan.

hi Johann

Usable equity would be [$410,000 x 80% (or 90% maybe) ]- existing loan.

You should be able to pay out that $100,000 in less than 2 years.

For the business have one person operating it only, to reduce risk, and further reduce risk by using a Pty Ltd company. The company can employ the other if need be, or have the shares owned by a DT so as to add tax flexibility.

Not sure how you are doing that with the business – paying for the home and hope you have sought advice. if the business is leasing part of the house then the CGT will be lost.

You have some misconceptions regarding trusts.

Trusts can claim depreciation and there are no tax issues – but this shouldn't be your major concern. They can be set up very quickly. There are no stamping issues with trusts in QLD (costs $500 stamp duty in NSW).

With Tenants in Common you also need to remember what happens at death. (I am not talking about heaven either!). Make sure you have  a proper will in place and one that takes into account any loans secured by the properties.