Yes you could increase your loan or refinance and include the car up to 90% LVR. but, LMI would be payable. – maybe around $2000.

I agree, car loans kill serviceability, so getting rid of it would be a wise move. can you pay it out in cash?

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I dunno about the moving out of your PPOR bit. If it is going to be cashflow positve, that means you will be paying extra tax where otherwise you wouldn’t. This doesn’t really make sense, unless, maybe, you will be downgrading and moving into a very cheap place.

Also factor in holding costs on your renovation. It might grow $40,000 in 6 months, but this might cost you $20,000 in interest. If paying cash, you need to think about the opportunity cost. You could be investing your money elsewhere.

Other than that I think it is a good idea. There may not be immediate increases in all markets, but in the long term adding value to quality property is a good strategy.

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I beleive customs will hold your goods until the duty is paid. The duty varies depending on the type of good imported (and maybe the country of origin). There is a number you can ring so ask – it is on the customs web site. AS far as I know, you can pay by all the usually methods. transfer, deposit, cc etc and you don’t need any permits if importing general items. Some items such as food, wood prodcuts etc may need some sort of permit.

I don’t know if an accountant would be able to help you with much. There are some Aussie books, and cheap courses available on importing. There are also various trade fairs happening in China all the time, one in Guangzhou recently.

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It wouldn’t really make your unit negative again. Any future borrowings would be for the new property and/or car, so any interest payments should be attributed to these. I suggest you leave the car out of it as it will get messy at tax time. (and cars are depreciating assets so should not be purchased on borrowed money). If you have cash like you say, use this to buy the car and borrow 100% + costs for the new house.

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Hi

If you wanted to do a lease option, that could help you out by letting you gain access to equity while waiting for your credit problems to diminish. You can get a loan as soon as you are discharge, but the interest rates will be high, the longer you wait the lower they will get. So after renting for a few years from your daughter, you will be able to cash her out and buy a house that should be worth much more than you are paying for (at that stage). You daughter would benefit as she would get positve cashflow and a small capital gain.

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I’d be getting a few more agents around, and probably steer clear of that firm.

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Beware of taking advice from friends. Why wait? did it now, add value and access the equity for more properties.

It should have no bearing on CGT – especially if not selling!!

Also you cannot write it off unless it is a repair. If that is the case, you can repair anything anytime – if broken. If not a repair, you can still claim depreciation on building and fittings etc.

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There would be heaps of capital gains tax to pay, so why sell? If a good area, just keep and access the equity to buy more.

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Landt

I am not an accountant, but think it would go like this:
$160,000 profit, less costs such as stamp duty, agents fees etc
maybe $10,000 = $150,000
Since you have held it for more than 12 months, this is discounted by 50% = $75,000.
This is just added to your income. If you have purchased jointly with a spouse/friend, then only your share is added.

So say you earned $50,000 for the year. Your taxable income will now be $125,000, and you pay tax based on this amount.
Worse case scenario, would be 50% tax on $75,000 = $37,500 extra tax payable.

These are very rough figures!

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Just bear in mind that you cannot simply increase your IP loans and move the money into your home loan, as the interest wouldn’t be deductible.

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