Weekdays busy – Had a quick chat with one of the respondents on this forum and they will get back to me latter this week.

Guys, With no loan requirements – I think this is straightforward.

A) Has anyone set-up an SMSF to buy property overseas – anywhere (say the USA).

Would you recommend any one who can help in this activity (professionally).

Regards

Terry, Can you help with setting up a SMSF to buy property overseas. If so, I am happy to give you a call and seek professional advice on the matter.

Is this approach (using SMSF to buy property overseas) used by people and approved by TAX office.

Thanks banker – really appreciate your comments and they will be very useful tommrow.
1 à I will lodge a complaint tomorrow morning with the bank and get a complaint number.

2 à I will lodge a complaint with the banking ombudsman

3à they definitely had a system error ( I have that in email) – also in phone conversations – they kept on repeating that it would be taken on next night for 3-4 days – for these conversations they kept on telling that these conversations are recorded but they cannot give me anything in writing.  The email from the teller (person who lodged my application) was separate.

4à I think the bank will argue that this is a system error.  

 I understand your point about trying to pay earlier but I was bound due to the past year -interest became due in june 29th each year.

I do not understand your comment about — “You might get two lots of interest in this fin year / one paid July 10 and one paid June 11.” Is this about me paying two lots of interest next financial year is it?

This is really bad.

Regards

Ankit

So what are my real options

1.       If I move bank (my lender), do I need to pay Lenders Mortgage insurance (LMI) again or does it move with the loan. This is one single thing that will prevent me moving.

2.       The house that i live in has No break fees – I have been with the bank for more that three years

3.       Investment property – I pay interest in advance each year – so am fixed till 30june. This can also be a problem.  I will again need to pay interest in advance this year as well. A little bit of a hit is fine.

Bottom line is that I need the funds (up to 80% and ideally upto 88% of the combined value) and will move if the bank does not let me borrow more. I am happy with their product (5.98% on a Line of credit – big 4 bank) but will move.

I am assuming if I move the other bank will value by houses again (off course). If anyone on this forum think they can refinance me in a cost effective manner please let me know your email address.

The other thing, as i am happy with the existing product, is to talk nicely to the currnet bank and see if they can do anything- all i want to do is borrow against my existing equity – what is the correct reason for borrowing which the banks will not be able to refuse – MBA , want to buy another property , want to take this money and go to another bank for the next property etc.

Elka, This requires proper investigation and may require rethinking the entire strategy. I will take a week to respond to this one fully (weekdays is busy). Initial thoughts….

1. It is likely that my going overseas may trigger a CG event.
2. On the IP I was always going to pay capital gains tax. The real concern is the residential property.
3. I would be extremely reluctant to sell the house – Only if it becomes cost neutral over a couple of years would I sell my house.
4. My calculation prior to this post was

A loss of 25000 per year which would progressively decrease. Appreciation in property value per year  @5%= ( 350000@5%(PPOR) +350000@5%@0.85(IP)) = 32375.  If it increased more than 5 % then it would be where i would win. However now if I have to pay CGT on my PPOR then the whole exercise may become cost neutral.

Question : I am an Australian citizen — Say I go overseas and come back for one month after 5 years. Do I become a resident again (and use my current residence with tenants moved out as PPOR) or is it only after I live again in Australia for 6 months in a taxation year do I become a Australian resident for tax purposes.
Who does house valuations to determine house value for CG purposes – Can it be a real estate agent or a bank? I would only pay CGT when I sell the house right?

I would be very reluctant to sell my house. I need to understand the system and in a lawful,correct (and right by the tax office) manner understand how to maximize my returns.

Thanks for your post Elka – appreciate them.

h

Property in India is doubling every 3 years currently. Being an Australian citizen of Indian origin I find it easy to relate to that market and I know people who can alteast go and visit the property if the need be. It is all a case of how much does it increase!!!. I went to India over Christmas. I got a loan pre-approval from ICICI bank (India’s largest private bank) on my recent trip.
I rang up Citibank Australia today and they said that I need to talk to the local branch i.e. Citibank branch in India.

So based on these two things —

1. Do negative gearing rules apply in India (or any overseas country e.g. USA etc)?
2. I would be more comfortable going via a global bank e.g. Citibank or HSBC – don’t know how much of a presence ANZ has in India.

I will find a bank – that is not a problem — By posting on this forum all I am trying to find out is – does this model work? Can I buy property in any overseas country (in my case it would be India) and claim negative gearing in Australia? How about paying taxes at two places – tax in India on rent received in India? E.g. If you had a USA property would you do a tax return in USA as well?

Please advice?
Regards