Rob was posting while I was typing (yes it took me 20 min to finish). But I would like to add, if an offset is used, for the purposes of calculating trailing commission, most lenders calculate the trailer based on loan amount less what is in the offset account.

So brokers recomending this strategy are not doing it just to increase commissions.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Clients will also have to pay LMI. I guess you can’t have every thing.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Off the top of my head, Bankwest Lite (low doc) does not have exit fees.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Markus

I have heard an accountant suggest a new structure for short term project like renos. This is because the ATO could class you as a ‘trader’ ad the properties as trading stock. If this happened you could lose access to the 50% CGT discount. You would not want to lose the discount on the buy and holds, so a separate structure would help ensure that doesn’t happen.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Possibly nothing! if you move out of your main residence, for up to 6 years, then you can still treat it as your main residence, even if rented. If you sell wihtin 6 years of moving out, then you can pay no tax.

If you are claiming Brisbane as your main residence, then you have to chose which one you want as your main residence during the cross over perio. You can only have one main residence, except for a 6 month period when you can overlap.

If the above doens’t apply then:
(Value at date you moved out) – (Sale price) = profit.

From this profit you can deduct costs such as stamp duty, agents fees etc. And you must add back any depreciation claimed. = Net profit.

If you have held it more than 12 months, then this net profit is divided into 2 (ie 50% discount).

This is the taxable capital gain.

This taxable gain is then divided into portions as per ownership. Usually 50/50.

So 50% of the CG goes into the husband’s salary and 50% onto the wife salary.

You then pay income tax on your new yearly salary.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

A Binding contract could be established if it has an offer, consideration and acceptance. There is no requirement for a contract to be in writing-except for land.

So if you sign a piece of paper with a price, the adress and the vendor listed, it could be argued that this is a contact of sale. All the other party has to do is accept and it may be a binding contract.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

I am not sure also, but think you can only claim expenses at the same % of ownership. If she is not on title, she doesn’t own anything. The loan may be in two names, for whatever reason, but the deductions (and income) should go to you.

ps not an accountant!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Rob, You may need some new advice, and then make a back claim for up to the last 4 years.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

What about you Coastymike? You sound like you know what you are talking about, where are you located? On the coast somewhere?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Now that is thinking outside the square!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]