As a trust lawyer and a mortgage broker of 15 years all I can say is see Richard’s post!

No need to have more than 1 offset unless you have a shit load of cash.

Offset the non deductible loan first. If none are deductible then offset the highest interest loan. If you have different ownership of IPs then offset the loan in the lower income earners name.

Never join loans with different purposes.

MissWilko wrote:

I think the vendor has made his mind up though and we may just walk away…. Pain in the backside when we’ve paid for pest and building, strata reports and solicitor fees etc

Yes, but you would have known from the beginning that there was no vacant possession as this is part of the contract. Is there a lease in the contract?

Coogee126 wrote:

@lauriek

1. I don’t have a cashflow problem. Never have.

You must have a cashflow problem in the eyes of the banks, otherwise you would qualify for servicing.

MissWilko wrote:

We’re actually renting at the moment ourselves Terryw so we’ll also need to give notice (We’re currently outside of our lease). I understand that the Vendor is wanting to minimise any financial loss but surely it isn’t our problem that he has tenants in there?

yes as Jamie says how bad do you want the place – a few weeks paying double rent would only cost around $1k extra??

aussieguy2000 wrote:

I have not looking into it much and forgot that stamp duty exemptions for transfers for equal shares to a spouse are only valid on the PPOR.

This is not true for all states. If the property is in VIC you could be in luck.

As a lawyer and a mortgage broker I would say it isn’t true – or there is more to it.

You must have missed my comments about buyers agents above otherwise he wouldn’t be the only person you have heard from.

$485k x 80% = $388k

Less currnet loan of $285k = $103k in potential useable equity, subject to serviceability.

You should set this up as a new loan, preferrablly a LOC or an IO loan where you can redraw.

This can be used for costs, but don’t use this to pay for the interesst on the new investment loan as then you would be borrowinng to pay interest. The ATO may deny the deduction so seek tax advice.

how embarrassing!

There are a lot of SMSF strategies available, but little discussion of these anywhere so it would be good to stimulate ideas.