Houses Only, if you are using the refinance to pay for your new PPOR, then nope, can’t be claimed. It’s the purpose for the money, not the security.

Cheers
Mel

I think the bank still sees it as owner occupier. You might be in trouble though if you need their rental to actually qualify for the loan, but I have heard of people providing a signed agreement to the bank, and they have taken that into consideration for servicability.

I think (note ‘think’ please check yourself) that if you don’t claim the interest portion, you may not be up for CGT on that part. Definitely discuss the options with your accountant, and work out whether or not you will declare and claim, or just pocket the cash. Also best check the legality or otherwise of ‘pocketing the cash'[]

Cheers
Mel

The problem with keeping all your loans with one bank is that eventually you will hit their ‘lending limit’, and they will knock you back, no matter what the deal is like.

At this point, it’s necessary to go to another bank. If you have three loans with three banks, you now have three choices for your next loan that all know you already.

One other problem with all loans with one bank is that (I think most – a Mortgage Broker can clarify) when calculating servicability, they will add 2% or so to the interest rate for all their loans, whereas with other banks loans, they may take them at face value.

Cheers
Mel

Why would you be paying a large amount of tax? At most it would be 48.5c in the $. To leave you with a profit of only $200, you would be making a profit of only $400 for the year anyway, which is hardly worth it.

You would be paying CGT on the place you sell unless it was your PPOR.

I think you need to realistically assess your $$ profit, not %, and then work out your marginal tax rate on that.

Cheers
Mel

Also remember that you get a 6 year exemption from CGT if you do not make another place your PPOR in that time.

So you can have the best of both worlds.[^]

Cheers
Mel

tjal, there was a post made by Grizzly Bear (Steve’s business partner Dave) stating that as of 1 Jan 2004, the requirement is that you must live in your property for 6 months to retain eligibility for the FHOG – commencing within the first 12 months.

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=7793&SearchTerms=fhog

Cheers
Mel

James, start date is the day you sign the contract. End date is the day you sign the contract to sell. Need to be careful if you give a long settlement, but exchange in one year and settle the next. CGT hits you in that first year’s tax return, which may need to be paid before you settle.

Cheers
Mel

The best thing is if you don’t like your job, and you don’t need it anymore. Then you can tell your boss to take his/her job and

give it to someone who deserves it more than me.[]

Cheers
Mel

SIS, I’m thinking….. ‘good as gold’?

Cheers
Mel