Well the choices are either cash (ING) or the market (shares or managed funds).

Additionally an idea is to keep it in a family members offset account BUT be very careful doing this as you will get unstuck if you need to demonstrate 5% genuine savings and it isn’t in your name…..

If you don’t like the volatility of the market or the restrictions of the term deposits then I think ING is as good as anything – I keep my cash in an ING direct account myself.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
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 occupy it from purchase as a PPOR then you have CGT exemption for that time and any periods of up to 6 consecutive years of renting. As long as another PPOR has not been established in this time.

Check for yourself with the ATO.

cheers,

Simon Macks
Mortgage Broker
[email protected]
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.

Mel,

I was working on the premise that she had enough in the offset to reduce the interest by $130pm?

Correct me if I am wrong please tancas.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
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.

SIS – there is little talk of the FHOG being withdrawn. Unfortunately my crystal ball is not working atm []

If I ever hear anything I will post it.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
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.

The states are all the same as this is federal legislation.

Good info on that change to 6 months residency – we had heard it was coming but great to have a date for it.

SIS – you can depending on the date the IP was purchased as you have just discovered yourself[]

Cheers,

Simon Macks
Mortgage Broker
[email protected]
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.

I don’t believe there is a timeframe to establish it as a PPOR.

I you rent it then move in the CGT is proportional ie if you own it for 5 years and rented it for the first two then you will pay 40% of the CGT (halved again to 20% – 12 mth rule).

if this is your plan then consider moving in to establish it as your PPOR before you rent it. Then you get up to 6 consecutive years rental without losing the CGT exemption.

Best to get professional advice!

Cheers,

Simon Macks
Mortgage Broker
[email protected]
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.

I agree with Terry – there may well be no real reason to change it except perhaps an emotional one. If it is never sold then the CGT will never be triggered.

If your parents pay “rent” to the brother then perhaps he can gear it. He certainly has an asset in his name which may help or hinder his future plans.

Simon Macks
Mortgage Broker
[email protected]
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.

Fudge,

Simply it is an account linked to your home loan.

Every dollar in it offsets the loan – saves interest. ie a $200 000 loan with an offset account holding $50 000 will see you paying interest on a loan of $150 000.

Why not just pay into the loan and redraw as required you ask? If you convert the home into an IP and wish to buy a new PPOR using the funds then you preserve the original loan against the new IP.

Had you redrawn for a new PPOR then that is considered a new loan for personal use and as such wouldn’t be deductible.

Hope this helps,

Simon Macks
Mortgage Broker
[email protected]
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.

Well if he introduces the buyer then some people would suggest he gets paid? Perhaps he will negotiate the comission pretty heavily seeing as he has a hot buyer waiting?

If you haven’t signed the agreement then perhaps you can approach the vendor direct?

If you haven’t signed anything then you should have no obligation but I suggest you approach your solicitor with this query.

Good luck,

Simon Macks
Mortgage Broker
[email protected]
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.

Well there is no reason why you shouldn’t make these changes for your own financial organisation, perhaps you are adding an additional layer of complication into it but not the end of the world!

7.07% is a high variable rate. I would suggest you could get 0.5% cheaper if you looked around – even at CBA with their pro package.

Good luck,

Simon Macks
Mortgage Broker
[email protected]
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.