Forum Replies Created
Who was promoting this idea Rebecca?
It might be OK in a strongly rising market – I would be loathe to suggest it otherwise.
Cheers folks,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Quote:Originally posted by redwing:Even if the tree is not on your property?
Think he meant near his building instead of property – is this correct?
Otherwise if it is not on your property you may well be breaking a law by removing it yourself.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Seems that much of the above advice is opinion. You are the one that takes responsibility for your tax return – not well meaning strangers [biggrin]
I suggest you contact the ATO or an accountant and check that it is not of a capital nature.
Would be great if you could let us know.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 I refinance the T/H and take the money out and put it in a offest against the new PPOR does that makes the new interest on T/H tax deducitble or not ?
This wont be deductible. because in this case, the purpose of the loan will be to put funds into your PPOR.
This is why a change of ownership with a whole new loan needs to be considered.
Your wife cannot borrow for the IP so consider a trust as the new ownership entity. If you want to consider this path I would strongly suggest that you seek an experienced accountants advice.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 mum:Transfer the townhouse into another name – a spouse or a trust. Take a 110% loan out against it and place the funds (after costs) into an offset account on your current PPOR.
There are stamp duty issues with this. Full stamp duty (at SA Govt exhorbitant rates) may be payable.Increasing loan on current place to buy another has issues re what is tax deductible and what is not. There are other streams covering this. Basically, the tax deductibility of interest depends on the purpose of the loan (or part of).
Mum,
I mentioned the SD.
What are the tax implications you are worried about?
The new loan is to buy the old townhouse (remember a “sale” has occurred as the title is being transferred). So the purpose is to buy an IP therefore fully deductible.
Placing the funds into a offset means that should this situation occur again then the money can be transferred from the offset to a new PPORand the existing debt then becomes tax deductible.
Please feel free to correct me if I am wrong here – but make your point instead of just raisig doubts as to the veracity of my suggested strategy.
Kind regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 must admit that looking back I have regretted the sale of every property I sold…
Tax wise you are in the wrong position with your debt against your PPOR.
Here is one idea.
Transfer the townhouse into another name – a spouse or a trust. Take a 110% loan out against it and place the funds (after costs) into an offset account on your current PPOR.
This will improve your tax position markedly.
Downside is the costs including SD.
However, you will also have no CGT on the “sale” of this ex PPOR if you do this within 6 months og moving into the new PPOR.
Hope this makes sense,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mt Isa is good for cashflow but it’s future is linked to one industry – I wouldn’t be too keen on it for a CG prospect. Is also not so popular with the banks.
Blue Knob is a place I have never heard of.
But Nimbin is certainly in a nice part of Australia – long time since I was there tho.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 think the only way you would be able to get a loan is by using a NODOC loan. You need a 35% deposit for one of these. Can you pull a large enough deposit from your farm loan?
Perhaps you need to reconsider whether this is the right track – $4000 plus a disability pension is a very small household income and must make it hard to even meet the farm repayment. A bad season might see you regret the IP purchase.
All the best for the future,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
For this to be of any value could you list the reasons why you like those places?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 think you will find that depreciation starts overagain when the property is sold. Not at original value but rather at curent market value.
A Quantity Surveyor will help here.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Contact me if I can help.
Good idea to start looking early – Is impossible to find anything good at the start of the uni year – come a few weeks early.
What course are you doing?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 have never felt poor – even when I had no money.
Poor is a decision to choose a state of mind.
[biggrin]
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 think it may be deductible if the landlord is refurbishing it back to it’s original condition between tenants – as long as it is AVAILABLE to rent it wont be an issue how long it stays empty.
Cheers
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thats because Wizard products can be quite inflexible.
You need to speak to a good broker as you suggested.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***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 would need a lot more info to help.
Have you a deposit? How long has this been saved over?
What rent would the properties get pw?
Do you have dependents?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Use the location wizard on http://www.pmigroup.com.au
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Is easy. You need to apply for a home loan and have a solicitor change the title.
No need to use a real estate agent.
You can go direct to a bank or use a mortgage broker to find you the best deal.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Check out the deferred establishment fees or penalties for early payment.
Most mainstream lenders pay for the valuation or it is part of the application fee. I doubt you would save by sourcing the valuation yourself.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Will you live in the new place or rent it out?
What rent would it achieve?
You are only really sitting at the minimum amount of equity required here.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Please get in touch with a good broker. They have access to way more products than any single lender.
Cheers and good luck,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
