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This didnt really help me out, but for anyone else that wants to read about the planning guidelines
http://www.planning.wa.gov.au/Publications/1585.aspxMate, google "corpred depreciation" – they give you an estimate via sms on what your depreciation is – if you are happy with it you can either fill in forms full of details and they will do a schedule, or you can choose to get them to come check out your place.
I was told the same thing, dont bother with a depreciation schedule – even by Deppro – because my place was only an investment for 12 months before I moved in to it myself. Im glad I went elsewhere and got a schedule done. As my place was a display home I got a hefty tax return just on that.
ps. Where is your IP? thats a reasonable rental return!
Hey Danny
I am actually doing exactly what you are asking. Selling my IP to get my PPoR loan down. My reason for doing this is further reducing my exposure to interest rate rises when they eventually come. I will suffer a bit of Capital Gains, but Im still making money. Interest repayments on my PPoR are not tax deductible, so I see it as worthwhile reducing them.
The increased equity in my house will then be used for deposits on further investments.It completely depends on what your long term goal is. Mine is to get my mortgage down. If it means buying and selling places and paying capital gains then so be it.
Figure out what you want to do and talk to an accountant and/or financial planner.
Hey doublek. Im pretty sure you cant run an offset against an IO loan though – only an I+P.
Sorry to high-jack – but what did Scottnomates mean when he said offset is better than redraw? Im currently using my redraw (no fees for in or out) as a dumping ground for all my spare cash, including my wedding funds. Ill of course have to pull the wedding funds out in a few months, but it is helping towards reducing my loan. I went this way rather than an offset as the interest rate is lower. What exactly is the benefit from drawing from an offset rather than a redraw?
thanks
Thanks Richard.
Perhaps I should further explore the trust option. I am looking at increasing my portfolio over the next few years (as is everyone else!)
Kurt
Hi Mat
It sounds to me like the opportunity they are trying to present you with is something they have come across themselves as investors, and they are trying to grab a $2k finders fee. I would do some more research and try to find out who the developer/builder is and see exactly what the go is. The mention of them making you a VIP member sounds dodgy. You should be able to choose what unit you want if it is available without any crazy status.
Having said all that. If you do want someone to point you in the right direction you are probably better off paying a buyers agent to find and negotiate on property, rather than someone trying to take advantage of you. It will cost you though, but a good one will save you more off the purchase price than what their fee is.
Good Luck!
Kurt (also in Perth)
Sorry, what I meant to say was
"The question I have is would the LMI be payable on all the loans contributing to the deposit portion and the new IP. Or would I only be up for LMI on the loan from the external bank to my current loans?"
Thanks everyone for your advice. I spoke to the bank and they will let me do the term deposit option. Upon maturity I can dump the money into my PPoR – and it leaves my IP loan as is…
Qlds007 wrote:I dont believe this is true – can anyone verify.Yes you are correct you cannot.What about if the loan allows redraw. Im on a minesite and one of the accountants here said it is legal, although he's been out of income tax for a few years now.
With regards to the term deposit option – I did think about that. Would that help keep my LVR below 80%? If so, that is probably the best option!
Or is there another way I can keep my left over cash from the sale of my house somewhere other than these two loans, keeping me out of mortgage insurance territory until the end of July so I can just dump it in the new PPoR?
It would be a shame to put all my money into the IP and then have to sell it off later.
thanks
