Originally posted by jayco:

Alll other expenses including interest will be tax deductible while it’s an IP. Depending on the age of the property and specially if you renovate you will be able to claim depreciation as well.

Hope this helps[smiling]
Elka

Hi guys,

Just want to confirm that once the property is converted to an IP and you are…[Read more]

Originally posted by The investor:
Simon,

Do you know if this is the case in NSW aswel?

Thanks

Is true for all states.

When it first came out then an IP meant you lost it forever but it was amended a long time ago but a lot of well meaning friends and family perpetuate the original rule [confused2]

My website has a link to each state’s FHOG…[Read more]

Common misconception that you forego the FHOG if you buy an IP.

As long as you don’t occupy the IP then the FHOG is there for when you do buy your home.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any…[Read more]

Originally posted by L.A Aussie:
Absolutely. I know of 2 guys who both bought identical apartments in the same building, then moved into each other’s apartments and rented from each other and were able to claim all the expenses etc. Good one!

By the way; there is absolutely no where in Aus that is like L.A (thank…[Read more]

Sometimes an IP is easier as you can factor the rent into the deal.

Building an asset should help him buy his own home in the medium term but there is no hard and fast answer I can give.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual…[Read more]

Our mortgage system is just not structured to do that. Is a case of a new loan after purchase as per any other property. Unless you had an existing LOC that could cover it then it is a cash deal.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual…[Read more]

Originally posted by ctaing:
Kjs, we’re here to learn and are warned enough times in the forum to back up opinions with qualified professionals with expertise in properties.

I cannot underestimate MB opinions. Loan features are constantly changing as well as the rigid tax compliance issue to boot. Where do you turn Kjs? Reading this thread…[Read more]

Originally posted by catherina38:
Yes, I am clear that i’ll have 12 month to move in to the new home. But, the tenants that were already there will then be paying rent to me. Many say I can’t do that. The thing is I don’t care about the rental money because I want to live there.
Please anyone opinion or experience in this to let me know how to go…[Read more]

The answer is simple. You have 12 months to move into the home and still keep the FHOG. This is longer than most normal existing leases.

You will need to occupy it for 6 months from when you do move in.

Hope this helps.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant…[Read more]

I normally delete these to save people from getting ripped off. But I thought I would leave this one up as an example of the sort of spam that is going around.

Nigeria is the first red flag on this one!

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual…[Read more]

IO with offset is what I would do in my situation. Especially if the plan is to rent it out.

If any broker suggests P&I in this situation you shoulkd move onto a new one.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you…[Read more]

Originally posted by cyclist:
Simon,

Thanks for the points you raised I am glad I posted this question on this forum now.

I had no idea that the advisor would get $4000 upfront. I ll certainly be pushing for a discount broker if I decide to go that way (I’ll certainly weigh it up very carefully now and do some research)

Also I did not know…[Read more]

well I cannot give you any financial advice.

Some points:

What are your longer term plans for the current home? If you think you will ever upgrade AND keep the current home as an IP then I would advise against banging your lump sum into the loan. I prefer an offset as it will be the same in the short term and more tax effective if you do rent…[Read more]

Originally posted by jorgon:
I’ll pay the site a visit.

You should go one step further and speak to Michael about what his staff can achieve for you.

I wouldn’t hesitate for a second in recommending his team to anyone. Michael is one of the good guys in an industry that attracts fools and shonks.

Cheers,

Simon Macks
Residential and…[Read more]

Sounds about right.

We can probably cope with more difficult than that [biggrin]

Cheers,

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

If you know which stck you wish to buy then the cheapest way to buy is by opening an account with an online broker. Comsec and etrade are both popular.

Your bank may offer this service and this is a good option as you can link it to your account. I use NAB online broking service for this reason.

If you are internet savvy enough to post here…[Read more]

It shouldn’t matter.

You can ask Powerloan to hold off on your application if you wish.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Originally posted by wayne10539:
Thanks Mortgage Hunter & Depreciator

Simon i have not completed my tax return for FYE 06, am i able to claim the depreciation over the last 4 years even if the properties had been sold in the FYE 06?

Yep.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments…[Read more]

The ATO will allow you to amend your tax returns back four years – so the answer is yes, you can back claim depreciation for the years you mentioned.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment,…[Read more]

Originally posted by meatgroup:
Interesting point youn have there LA Aussie…. please forgive my ignorance in respect of depreciation if I am off the mark but while depreciation is a handy deduction to have, isn’t capital gains tax still charged on the entire profit when selling an IP – effectively voiding any real benefits of claiming the…[Read more]