Horwath’s Tax Telegraph January 30, 2006 newsletter contains a bit on owning your home via a company.

I could forward a copy to you if needed.

Terryw
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He would have to wait 1 day before qualifying for a 70% No Doc loan.

He could use his NZ house to get a LOC (over there) and then bring this across for deposits.

Terryw
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Mal,

I cannot see how it would change your assessable income.

You you get $500 rent, your income is $500 less the deductions of $100 = $400.

If you get $400, without the deductions, you assessable income is still $400.

Terryw
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If you are living and workign in Japan, Aussie banks offer Japanese rates on Australian proeprty. But once you leave the country or stop earning yen, then you must renegotiate the loan in AUD.

Terryw
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One is finance. It is generally harder to get.

Another is resale value. They are generally harder to sell.

They are harder to sell because they are hard to get finance for. And they are hard to get finance for because they are difficult to sell.

Terryw
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It wouldn’t make any difference – would it?

eg. The rent is $500 plus $100 rates. You have to pay tax on $400. You drop the rent to $400, no rates, so you pay tax on $400.

You would in essence be paying the rates and they would be reimbursing you. So it would work out the same.

Terryw
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100% loans only go to approx $500,000, however 95% LVR loans can go up to $750,000.

Pelzer, buying a property will cost much more in weekly repayments than will renting the same property – especially the expensive low yielding properties in Sydney. Wrapping at a higher interest rate will hurt even more.

So you may be better off considering continuing to rent and investing the money you save.

Terryw
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When you say living with, do you mean defacto? If so, then he has an equitable interest in the property and could make a claim.

If not, then he may still be able to purchase the property using a no doc loan at 70% LVR.

Or, you may be able to purchase a property for him now and transfer it later, without stamp duty using a bare trust

Terryw
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