Both properties have risen something like $100k since we bought them.

Hi Richard, thanks for joining in

So if I sell to a Unit Trust or a Discretionary Trust (cause I was thinking that might be step 2 as I have 2 kids and a stay at home wife) then I get slugged for capital gains? Ouch… surely that’s gonna be more hassle than it is worth. And I thought if I bought hers, and she mine… again capital gains.

The…[Read more]

Terryw wrote:
What is the purpose the funds were used for? If the husband lend the wife money to pay down the investment loan, then this is just refinancing debt – so should be deductible, but his net result is the same. If any of the excess funds are used on the PPOR loan then the purpose is private and the interest on this portion won't be…[Read more]

Refinancing both your mortgages should yeild:80% of Land(0.8*165k) = $132k which should give you an additional $39k 80% of PPOR(0.8*350k) = $280k which should give you an additional $30kProviding you can finance the additional $69k of debt. Can't see much more than that floating about from those assets though… You could mortgage further than 80%…[Read more]

Dan42 wrote:
I think you would have a hard time explaining to the ATO why your interest bill was $12,000 one year and $20,000 the next.

maybe not: "Because I re-financed the property to pay down my wife's investment property that she is not able to sustain due to her not working presently"or something along those lines.

Thanks for your response Dan & Trent@DanHow come I can't use LOC for re-financing? I thought a refinance was basically pay out old loan and get a new one. In which case I could use a LOC for 20% and an IO mortgage for the remaining 80% – thus giving me maximum negative gearing on the property.Also I thought that if I used the gained funds to pop…[Read more]