number 8 wrote:
I see that Steve has accomplished great things, the philosophy is great, the thought processes are impecable, nice guy and the negotiating skills are great. But what I cannot see is that this can ever be repeated. There is no strategy for Mum and Dad Australia. I hear that you can do 5 in 6 years or sub-divide several blocks or…[Read more]

Hi Free,Rules vary in each state, but the landlord is well within their rights to increase the rent every 6 months here in South Australia, even if a longer term tenancy is in place. I think this is different in other states. Month to month tenancies are also treated differently in other states. To answer your questions.1) I would guess the clause…[Read more]

If he takes it out now, at age 59, he MAY have to pay some tax on it (depending on the amounts and the tax structure of the superannuation fund). If he waits until 60, any withdrawals would be tax free (assuming it is not a Commonwealth govt super, which are taxed differently again)As Scott said, it is best to see a professional about his options.

Intrigue wrote:
Do we have to do things the way they have always been done just because that's what the seller wants or what the agent is familiar with?

The issue here is the seller holds all the cards. You can ask for all sorts of conditions, but if the seller says no, then that's the end of it. It is in your favour that the property has been…[Read more]

A unit trust doesn't offer the protection that a discretionary trust with a corporate trustee does. If your parents went bankrupt, the units would be an asset that would be available to the bankruptcy trustee.

omegapartners wrote:

Dan42 wrote:
You can claim back the GST IF:1) You are registered for GST2) You are running a property development business. This can be in your own name, it does not have to be under a company structure.The downside of claiming the GST when you are building is that you would be required to PAY GST when you sell, reducing…[Read more]

I wouldn't advise the use of a Hybrid Trust, as the ATO have released several rulings about the uncommercial use of Hybrid Trusts, and the deductibility of interest. If you are going to be cashflow positive, I would use a Discretionary Trust. Another reason to use a DT over a Hybrid Trust is that it is easier to borrow funds in a Discretionary Trust.

Like Scott said, I'm not sure why you need so long to do your inspections. Here in SA we only get 2 days cooling off!If I was the vendor, there is no way I would grant a 30 day due diligence period. The vendor would be essentially turning away other prospective buyers while you did your due diligence. If, at the end of your 30 days you decide n…[Read more]

taogofers wrote:
After setting up a Trust Company- what is the procedure from transfering real property to the trust?do you need to officially transfer through lands titles office.are you require to pay stamp duty on a realistic valie of the propertyTao

Yes and yes. The legal owner needs to change on the title, and you will pay stamp duty at…[Read more]

AussieHousePrices wrote:
Hi All, If you’re not yet tired of reading about the Aussie Housing Bubble, check out my new blog: http://aussiehouseprices.blogspot.com/ Cheers. Andy.

Great first post Andy, plugging your own website without adding anything to the conversation. (Please note the sarcasm).Please forgive me if I won't be clicking on y…[Read more]

mattnz wrote:
Here is an article in which the chief economist at BNZ, fully owned by NAB advise that they recognised the NZ market was 30% overvalued in 2008 when the ratio of house price to wages were at a multiple of 6 in NZ.In Australia they are much higher now, Sydney has a multiple of 9 and Melbourne 8.

House price to average (or med…[Read more]

bb8 wrote:
2. However by having a "business line of credit", which would pay my PSI trust expenses (deductible), the business LOC can pay the interest on the PPOR loan which then make this interest payment tax deductible.

It's not that simple. Interest deductibility is determined by the use of the funds. In the transaction of the trust LOC…[Read more]

No. The 'increase' on the rental loan would be used to pay down your PPOR, and would not be deductible.Interest deductibility is determined by the purpose of the loan. If the money is used to pay down another (non-deductible) loan, then the interest on this portion would not be deductible.

eilatan28 wrote:
so is it just the portion i use that wont be tax deductible or the whole loan ???i dont expect to claim the interest on the part i use for personal use, i just want to be able to access funds without having to have to sell my original PPOR .is that were the split loan thing comes in handy ? so it keeps the loans separate so i…[Read more]

You can access funds for the deposit on your new PPOR, it just won't be deductible. Even if you were able to convince the ATO that you redrawing offset money, rather than borrowing to buy a new PPOR, I can't see how you would avoid the anti-avoidance rules. The only reason that you would borrow in this fashion is to avoid tax. There have also been…[Read more]

Hi Natalie,No, the interest would not be deductible, as the purpose of the borrowing determines deductibility. The purpose in this case would be to buy a new PPOR.

You can claim back the GST IF:1) You are registered for GST2) You are running a property development business. This can be in your own name, it does not have to be under a company structure.The downside of claiming the GST when you are building is that you would be required to PAY GST when you sell, reducing your profits. If you are building for…[Read more]

The flip side Jac is that the sale of your current PPOR will be tax free. You can then use the cash from the sale to reduce your non-deductible debt. The offset account is a beautiful thing, though.

It really depends on your personal circumstances, and how much you want to move. I'm assuming you don't have to sell to buy the new PPOR. The question I'd be asking is, could the capital tied up in the current PPOR be better used elsewhere? If you decide to move, I would probably sell the current PPOR, take my capital gains tax free and put the…[Read more]

coolcup69 wrote:

Dan42 wrote:
3) The easiest way is to not include the sale in your tax return.

Thanks Dan42. In relation to your response on point 3, could you elaborate a little further on "easiest way". Does this mean there are a variety of methods? I just want to make sure I take the least tax risk on this front.Thanks again…[Read more]