So Terry, starting with the end in mind, a good portfolio strategy would be:

Put the property with expected highest $ value (not rate) of capital growth in personal name and make it the PPOR for maximum benefit (even if only nominally via 6 year rule).
Put IPs in personal names so long as there is taxable income to offset and you are within the…[Read more]

To terryw, I can see that the CG exemption can be a huge benefit but many of the books I’ve read pitch the “never sell” idea as the answer to avoiding capital gains tax on IPs. If we’re not planning to sell anytime soon is there any benefit to be had in putting the property in a trust and claiming the deductions of a normal IP, building a…[Read more]

Just realised that the above figures don’t account for the cash associated with our own equity contribution to the purchase.

So, for example, if we have contributed $100K in addition to taking on the 300K loan then the actual cost to purchase the ~$54K yield is $100K + $10K pa.

Thanks everyone, I really appreciate your input.

So what I’m getting is that with an investment hat on I should be thinking about it something like this:

* Non-deductible interest charges are bad, but no worse than paying rent
* Any outgoings in excess of current rent payments in this situation are essentially for the purpose of purchasing…[Read more]

Hi Kinnon,

I know what you mean re the inter-personal dimensions, and that’s not something I’m dismissing at all – the two of us would need to ensure that we’re comfortable with that before we decide to proceed.

But I guess what I’m really asking you guys about is more the financial aspects of such a proposal. A couple of hypotheticals in the…[Read more]