Yes, all loans should be IO. Never use PI unless you are a spendsthrift and cannot control yourself.

It won't matter at tax time whether you use IP or PI as the princple of a loan is not deductible. If you use a 100% offset the interest will be the same anyway, but it will save you tax down the track.

Terryw wrote:

Yes thats right. Because of the % of stamp duty increases as the amount of purchase increases aggregation will result in much more stamp duty being payable.

I hear it is particularly tough in VIC where you could be ht with aggregation by buying 2 houses in the one street, even where they are not next to each other and may be purchased months apart

I think you are assuming seminar promotors and book authors are the biggest investors. I don't beleive this to be the case. The big ones keep quiet. eg I have heard of one guy who owns more than 200 properties in the Milsons Point area of Sydney. There are many many more people like this who you will never hear of.

Since you are self employed the lenders will want to see your personal financials as well as the company's. Generally they will want to see 2 years, but it may be possible to get away with one years financials in some instances. Best to see a broker.

I don’t know the strategy in the video, but under certain circumstances, it may be possible to use a LOC to service the interest on your investment loan (ie borrow to pay interest) and have the rent and all spare monies placed into a 100% offset account on your home loan.

This strategy could help pay off your non-deductible debt in years. The more properties and equity you have the faster the process will become.

But beware. The ATO has deemed some of these schemes as ‘schemes withh the dominant purpose being a tax deduction and denied the extra deductions. So you do need careful planning and possibly a private ruling.

Would the real top 10 investors want the publiciity?

You would never know who they really are.

What pots? They never left any pots did they?

Agents shouldn’t be advising on legal matters. If he did and u suffered a loss you could sue.

Anyway, just because there is aggregation doesn’t mean it will apply in this situation. I didn’t read the section so don’t know if it applies

I don't know the laws for WA, but in NSW it would be. Even if you used separate entities or even different family memmbers or purchased up to 12 months apart the stamp duty could be aggregated. I suspect it is similar in WA so you should check with your solicitor and then factor this added expense in (if any).

It should be pretty much the same in the UK as in Australia. Trust law developed in the UK. There will probably be some differences in the taxation side of things though.