Have a look at http://www.chrisbatten.com.au for some ideas on super.

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Caitlyn

This will generally show up as a capital gain on your tax return. Banks are generally reluctant to take capital gains into account as they are usually one off. If you can show you have done a few, however, they are more likely to accept it.

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Hi Ptn,
Westpac are not very good with trusts at all, but many other lenders are.

Accountant Coastymike has recently mentioned hybrid trusts cost around $1100 to setup. https://www.propertyinvesting.com/forum/topic/23356.html

DT can cost as little as $140 on the net, but if seeing an accountant, then this would be around $1100. You can also get hybrid trusts on the net for around $660.

Annual running costs shouldn’t be too much different.

Don’t think it would be complicated owing shares in a hybrid trust with property.

Hybrid trusts should enable you to save substantial amounts of tax if negative gearing, so it may be worth looking into.

There are other advantages too such as the refinancing principle – where after some growth, the trust may be able to borrow some money to buy back the units from you.

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Ptn

Why do you say hybrid trusts cost too much? It may be a few hundered extra, but surely the tax saved in the first few weeks would exceed this???

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Depends on many things, like is it cashflow positive? Who earns the most income? etc

I would say, probably a hybrid trust is best, with the unit holder being the higher income earner.

Best check this with a good accountant.

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What about buying to live in first (maybe rent out a spare bedroom), get the grant and establish this property as your PPOR. You will then be able to rent the place out and claim all deductions and still be exempt for up to 6 years from CGT. You can get your cake and eat it too!

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Idon’t think it would matter which loan you paid extra into, the overall interest would be the same either way. But if each loan has fees, then it would be good to pay one off quicker, and the smaller one would be easier to pay off in this case.

If you have 2 loans and no investment properties, i assume that both are for your home. If one loan has been used for business or other investments, then it would be better to leave this one IO, and pay off the home loan first – increasing your tax deductions.

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I have heard a few people increase their mortgage before moving out, and then claim the whole interest portion as a deduction, and use the funds to pay down the new home loan. Technically they have not increased the mortgage for non investment purposes after the property was an investment, so they feel safe in claiming all of the interest. Don’t think the ATO would see it this way, but the chances of an audit are slim.

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Don’t really think there is much you can do to minimise it unfortunately.

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Sure you could use the equity to pay off your home loan, but the interest would not be deductible – leaving you in the same situation.

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