yeah, that would have worked in the past. But these days asset lends are about 9 to 12% pa in interest and the loans are only usually for 1 to 2 years so it could be very risky

guarantees are not really worth much. If things go back and everyone starts calling in the guarantee the company can go under and then you will have nothing.

Talk to your lawyer. I think signing the notice will indicate you will be cancelling the contract, and keeping the deposit, if they do not settle – but you don't have to cancel it.

marx, your post doesn't make sense. neither do a few of your other ones.

Fitzer, ATO looks at the purpose the funds are used for not the security. You want to borrow to pay out private expenses so the interest won't be deductible.

What you pay be thinking of is using a LOC to pay the interest on other investment loans. This is totally different and may be possible to structure it so that you can rapidly pay off your home loan.

A private ruling is a request to the ATO for confirmation what you are doing is ok from a tax point of view. You apply, telling the exactly what you want to do and they reply saying if it is ok or not. Once you have one you can rely on it. ie the ATO cannot later say that what you did is not allowable.

I think you will have the right to rescind or cancel the contract if they do not settle within the 14 days after issuing a notice to complete.

You can't claim a house as your main residence until you have lived in it. So if you later move in and then out again it could be your main residence from the date you moved in, but not before.

YOu can rent out your main residence for up to 6 years and still treat it as your main residence. You will need to live in the place before it can be your main residence, and you can generally only treat one house as your main residence at any one time/

Hi

I think you may have some misconceptions about lending.  To get a loan you need to convince the lender you can afford the repayments. This is the case whether you are releasing equity or buying a property – in fact the lender will be more worried with releasing equity as you can just walk away with the money and spend it. At least with a new property purchase you will have rental income coming in.

One exception to this is the so called No Doc loans or asset lends where the lender doesn't care about your income at all. These loans were popular a while back, but have largely disappeared. There are a few still around, but the rates are 9%+.

Also, you must consider that having another loan will mean you have extra repayments and this will affect future borrowings as well. They base the calculations on the limit of the loan, not the outstanding balance. So this can hurt serviceability if you have a large line of credit sitting there with no income coming in.

Also, you will probably pay hardly any tax anyway – or maybe none at all. It is still worth minimising it as much as you can, but not a reason not to do it, or to give up.

For some good info, i suggest you go to bantacs.com.au and look at the PDF booklets on developing and tax.

Most IO loans are for around 5 years, then reverting to PI automatically. Some banks go up to 10 years, others 15 years. If you want to stay on IO after this intitial period some banks require you to requlify again – so have to supply updated payslips etc.