Or option 3) You buy her out (or she buys you out). There may be stamp duty concessions here.

Terryw
Discover Home Loans
North Sydney
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ps. I am not a solicitor so don’t rely on my post as I may be wrong!!!!!

Terryw
Discover Home Loans
North Sydney
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I beleive that there is no set period in which you have to live in a house for it to be your main residence. 1 day would probably qualify – all you have to do is justify yourself if audited. Keeping evidence like changing address with the electoral roll, RTA etc will help.

I did hear of one case where someone purchased a house using the FHOG and did not atually live there. He just changed his address, got the electricity connected in his name etc and left it there unrented while living with parents. The SRO made him give the grant back, he appealed and lost because the amount of electricity used during this time clearly showed no-one was living there.

Anyway, if you want to buy and sell within short periods the ATO could deem you to be doing this as a business and therefore you could be liable to pay tax on the profits made. It would probably take a while for them to detect this – if at all, and you would probably have to do a few in a short period of time to be caught out. It is just something else you have to plan around.

Terryw
Discover Home Loans
North Sydney
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Hiflo makes some excellent points there. I too would only use a solicitor.

Terryw
Discover Home Loans
North Sydney
[email protected]

Try http://www.strategicwealthmanagement.com.au

Terryw
Discover Home Loans
North Sydney
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Another option. What about hanging on to it and keeping it for capital growth? It must not be negatively geared too much after tax deductions?? You could also probably get a much low interest rate than 7.5%.

If you want to help the tenant, you could also offer vendor finance – lend him the deposit and let him get the loan in his name.

Do you know why can’t he get a loan? on an income of $80,000 he could probably borrow up to about $500,000.

Terryw
Discover Home Loans
North Sydney
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This means that you are going to have to lend them the other 50%. Whether it is worth pursuing or not will depend on many other factors such as:
– how soon you need the other 50%
– The price they have offered (should be more for the trouble)
– The security for your 50% – eg second mortgage.
– The interest they will pay you for borrowing your money, and the terms – ie how long, PI or IO etc.

So it may be an option, but then again you may be able to find someone able to pay full price straight away.

Terryw
Discover Home Loans
North Sydney
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I think Rob misunderstands my position.

I am a fan of LOCs, but am also a fan of offsets. I think they both work well and I use both myself.

LOCs are good if you want to ‘borrow’ money to pay investment expenses.

Offsets are good if you have spare cash and want to store that for later use while saving interest.

I wouldn’t advocate using a LOC if you are going to have your wages, rents etc paid into the account. Better to use the offset. I like LOCs to be used on unused equity.

With ANZ, the LOC does have a yearly charge, but if you are on hte professional package, it would be the same rate at the term loan with only the package fee.

Terryw
Discover Home Loans
North Sydney
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rmittlal1.

I beleive you accountant could be incorrect – with 4). If you move back into your original house, then you could not claim this at the same time as you were claiming the other one – except for a short period (6 months) where you can claim two properties at the same time.

Terryw
Discover Home Loans
North Sydney
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of course, if your property has gone up in value, you may not need other security now.

Terryw
Discover Home Loans
North Sydney
[email protected]