Forum Replies Created
Id say if you purchased another IP the contract document outlining the price would be evidence enough as would be the paperwork from your solicitior with the breakdown of settlement costs ie. stamp duty, legals etc!!
Not as plain as that Pepper.
Taking funds from a loan or from a LOC is deemed as a new loan – the purpose of this loan then determines the deuctibility.
So if you put $10 000 into your LOC then take it out again a month later for personal reasons it is non-deductible.
The only safe place to store this money with an IP is in an offset account.
There are also issues with storing money in a PPOR loan if that PPOR will become an IP at a later date.
This is a minefield folks and you need to be well informed or advised.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
An ad with a headline like free holiday or free car may not persuade people to buy but it certainly makes the ad stand out. I think you can be sure that more people will read that ad than otherwise – the last time I saw that up here the local property writer jumped on the idea and gave it a whole column as well – purely because of the QLD holiday they were throwing in.
So in this regard it may well be worth considering…
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I don’t think there is a difference.
Splitting hairs here – what people are suggesting is that Investors use property as one of their investing vehicles whilst a property investor ONLY uses property.
[biggrin]Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am not a big fan of the LOC. I would rather see a client use an offset accout to park funds in. If a deposit is needed for an IP then a split on the PPOR loan should suffice.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Julia,
Is it worth writing to the Commissioner with the statements and a suggested arbitrary division and asking for a private ruling?
This is not my area and I am just trying to have a think about it.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes – this is the beauty of the split. If you hadn’t split you would have to apportion it.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Edenlea is not a lender – they are a broker like myself and many others.
As I broker I would recommend you use a broker whom you can trust as they will be able to find you a great loan amongst many banks – they also add a lot of experience to your side as well.
To find a broker I would suggest you ask for a referral from family or friends or use one of the folks who contribute a lot to the forum.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
http://www.strategicwealth.com.au
Nick M is the man to use!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sounds good Boyler Room – I have an Adelaide client that wants to come along and meet some fellow investors. Does he need to RSVP or just turn up?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Many depreciation firms offer a money back offer if the tax claim isn’t bigger than their fee – nothing to lose I guess.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Vadim,
Tax deductions of all costs are available if the property generates income. So the interest is one such cost.
LMI = Lenders Mortgage Insurance – paid when you borrow over 80% of the value of the property.
You need to make sure that all parties understand what they need to do if you decide to invest together – we all have heard stories where families can be damaged by this sort of thing after a disagreement.
I suggest you need to do some reading – Steve’s book is a great place to start.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Absolutely yes.
I would recommend you draw a 20% deposit from the mortgage on your home and also enough for fees.
Hopefully that mortgage is still in place. If not Iwould suggest a Pro Pack with a major lender and ensure the loans are no xcoll.
After you have the 20% dep then you apply fora new loan on the new property.
The advantages here are that the two loans aren’t linked and also that no funds are needed and no LMI is charged.
The total loan would be tax deductible.
Please ask any questions if this isn’t clear,
All the best!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Rod,
Did you get my email?
I am interested and am in Newcastle.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hello Folks,
After getting back from Melb I finally have some time to add a little of my ideas on this.
Remember Steve discussed improving yields and solving a problem to increase value? This is what I did.
Last Oct I bought a 40 yr old solid brick home 400m from the uni for $315k. It was an absolute shambles cosmetically – I mean absolute – but solid and structurally sound. I discovered a one metre brick wall on the front boundary after cutting the lawn! I think I got it under value for this reason and also because the agent was distant and advertised sporadically etc. The owners were OS and didn’t realise the agent was not close I think.
Anyway we tidied it up, cleaned the carpet, painted the ceilings + walls, removed rubbish from the yard, changed a doorway, added a $3000 kitchen and painted the bathroom. We spent $7K and ended with a five bedroom home. We took a home which would rent for $200 in that conditon or $270 cleaned up, leased rooms individually to students and now receive $515 pw rent – poss more next year as the rooms were immediately snapped up and looking back I think they were cheap.
There is a lower quality 5 bedroom student house nearby in the same situation on the market now for $429K and I hope they get it.
I don’t think I would choose a purpose built student place. That is buying the solution. I also think you limit your potential to do other things in this case. Our home can always be easily rented or sold to a family should the student market dry up for some reason.
Hope this helps generate some ideas.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
whilst houses have theextra mainteneance aspects many apartments have high oners corporate fees etc.
I prefer houses because of the higher land content but many people do well in apartments too.
I wonder if there might be soe cheap apartments soon with all the OTP stuff due for settlement soon? What do folks think?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As Acey said – a LODOC or even a NODOC may well be the answer for you.
Try different brokers as they often have access to different products.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I do it. Please email me or post any specific questions.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Perhaps a commercial broker can find a higher LVR solution for you?
I will ask him on Monday.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Show off
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments 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 have a home loan or any other non deductible debt then I would make all IP loans IO and direct all principal payments into the non deductible debt.
Same affect on your net position – just keeping it a little more tax effective.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
