Don't forget you may be able to claim loan fees on an investment property over 5 years, or the term of the loan if it is shorter than 5 years.

Hi Dan

If you took out a loan and invested, then you are meant to repay that loan (from a tax POV) when that investment is sold. So you couldn't keep claiming the interest – an exception is if there was shortfall – eg. if the property was sold at a loss.

I agree. Do the figures and work out how much interest you will be saving and how long it will take to save that $18,000.

The longer you leave it the less you save and the higher the fee will be – rates are dropping still.

as a gudie,
As long as you are employed part time or full time you should be able to borrow roughly 5 to 6 times your annual salary.

The LVRs are generally up to around 70% with rates much higher than residential, around 9 to 10%. I have never done one and don't want to because of the complexity – you would need a superannuation expert to guide you through it all. http://www.trustdeed.com.au has some good strategies regarding SMSFs.

I think you are supposed to move into the property and actually live there as your main residence. So changing all addresses to that address, getting the connections in your name etc will help. One of my clients got audited by the OSR and he had to supply a few documents to prove he had electricity connected in his name, phone, etc.
But be careful as there have been cases where they have checked the electricity usage and made one guy give back the money because he was hardly in the property.

A client of mine constructed a house on land for a total cost of $130,000 with the bank valuation coming in at $390,000 just a few months after completion.

JMF

Look at the second point:
"You and your spouse/partner must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in any State or Territory of Australia"

You have jointly owned a property purchased in 1999. So I don't think you will qualify – but check with the OSR anyway, just in case.

Nae

I have had different advice regarding this. You will need to enter into a written agreement with the person you will nominate to act on their behalf before you sign a contract. If you don't you can still nominate them, but will be charged stamp duty as if you settle and then onsell to them.

Getting back to my eg.

Imagine if you had the foresight not to cross collateralise hte properties. Selling one would not effect the other and no valuation would be needed. If the value had fallen you could just hold the loan as is and wait for growth to kick in again.