Credit unions are usually pretty good for personal loans. You may be able to use an existing vehicle as security and get a lower rate too.

Yep, I think that is about correct.

As for investment loans being paid off – I would never pay one off, but just leave them IO and pay off the PPOR first (or offset). Once that is done then you could start paying off the investment loans, but I would just set up an offset on one of these and accumlate funds there.

Remember once you have paid down a loan there are tax consequences of getting the money out again.

I think you have it slightly squewed.

Lets work thru some rough figures.

Your current loan is $293,000. I recommending changing this to IO for many reasons – the main one is taxaxtion. eg may explain it better:
Say you had $50,000 in savings. You could deposit this on the loan (plan A)  and the balance will be $243,000. Or you could put it in an offset account (plan and you loan balance will be $293,000 but you will only be charged interest on $243,000. So the net interest is the same either way.

A year down the track you want to buy a new place to live in. Plan A above would mean your money is tied up in the investment. To access it you would need to use redraw and this will be classed as new borrowings. The interest on this extra $50k will not be deductible as it was borrowed to purchase a new place to live in.

If you used plan B the loan balance has not changed. You will take the $50k from the offset, not the loan. This is not new borrowings. The interest on the loan will now be charged at the full loan balance of $293,000 and your tax deductions will increase. You have effectively gained a tax deduction on this extra $50k borrowed.

This is why you should never pay down a loan, especially one on an investment.

In addition you get all the rent and wages paid striaght into the offset so you are saving even more interest. When you buy the new place to live in you take all the money with you and set up a new offset on this house so you can save non-deductible interest and maximise tax deductions on the old investment.

Taking this one step further.
Your IP value is $500,000. 80% of this is $400,000, but current loan is $293,000 that is a potential $107,000 LOC. You could use this to purchase the new one, but I recommend doing it differently.
You want a new one around $250,000 so you will need 20% deposit (to avoid LMI) and 5% costs = $62,500. So have this as one split. maybe round it up to $65,000. The remaining 80% comes from a new loan, also recommend IO wth offset.

Then have another $42,000 as a LOC and use this for all expenses relating to the investment property. Borrow to pay rates, water, insuruance, etc. The money you would have used to pay can then go to your new PPOR loan.helping to pay it down faster. If you had more equity you could even apply for a private ruling and have all interest for the IP loan paid for out of the LOC making it even faster.

You may not receive a notice from the ATO. They only send these out to encourage people to do their returns on time.

Due date would be the same as company/individuals which is the end of Oct I think, but if you lodge thru a tax agent this is extended till next year.

hi Dean

Thats true about land tax in NSW. But once you have a few properties you will be paying land tax on them anyway. The exemption only applies to the first $370,000 or so.

If you have 2 children they can earn about $3,000 pa each without paying tax. An adult can earn approx $15,000 pa without paying tax.

So say you had a property portfolio returning $21,000 pa profit. If it was in your name you may pay $10,000 in tax, but if it a discretionary trust you could distribute it to wife and kids and may pay nil. As well as getting asset protection.

The downside is that if there is a loss it is trapped in the tax and cannot be used to offset your personal income. Usually with property there is a loss in the early years. If you are self employed this can be offset by diverting other business income into the trust, if you are an employee this is much harder.

by being a guarantor that means they are putting their property on the line. It would be much safer if they could just lend you 20% – but this would all depend on their situation as well and may not be possible.

read as many books as you can including 0 to 35.

by modest, i mean as cheap as you can get for your area – but within reason.

You can only claim a place as your main residence after you have moved in. So not living there wouldn't qualify. Moving in later would qualify from that time, but the period in which it was rented can't count for the CGT exemption.

Start by reading as much as you can.

Then try to get into a modest house as soon as you can. Don't aim too high, you just will want something to get a foot in the market. I suggest you go for the FHOG and stamp duty concessions etc, live in it for 6 months (and do it up a bit while there), and then move out back to mum and dads. You can claim all expenses etc and still have this one CGT exempt for up to 6 years. Use a IO loan wiht a 100% offset account attached and plough all rent and salary into the offset. Be a tight arse for a year and save for a new deposit and hopefully some capital gains will kick in. from there it is smooth sailing!

To get into the first one try to borrow the 20% deposit from parents if you can. And keep on saving as much of your income as you can – look into the high interest savings accounts such as ING etc.

Also note that even if the trust is established and does nothing and has no income etc you will need to lodge a return.

No, you can borrow against that property. You just have to apply for a variation of security when you change titles