Forum Replies Created
Hi Sayan,
I think in that case you can only claim 20% of the deduction over each of the first two years, and then it is no longer deductible. Like Jamie, not an accountant so you would need to get this clarified.
Cheers
Tom
Hi propertyboy,
I suppose it all depends on the type of service you get from the property managers, but in my opinion 8-9% is high, and 4 weeks letting fee is definitely way too much. My one charges me 5.5% and letting fee equal to 1.1 weeks rent.
Make sure you ask them what they provide for you for engaging their services (i.e regular inspections, tenant checks, VCAT applications, etc) and find out what these extra expenses may cost.
Maybe because its Brighton PM's might think it automatically assumes a premium charge?
Cheers
Tom
Just reiterating what the above posters have advised, you will generally find that boutique apartments in smaller complexes will have better long term capital gain than larger complexes.
Footscray itself isn't that bad of a suburb to invest in, much improved area from what it once was. Just need to do your research and see if it's appropriate for you.
Cheers
Tom
I must have missed the memo. Since when and who are you allowed to refinance with up to 95% LVR?
Only 95% refinances I know are dollar for dollar moves. Anything involving debt consolidation and/or equity release is max. 90% from what I know.
Cheers
Tom
Richard, its one of those weird ones. I would agree with you that technically the OP isn't self employed as their only income is a set salary and they wont be receiving any variable income via company profits due to not being a shareholder, but as soon as lenders see an applicant is a director of a company, they automatically assume self employed.
Just using an example, if the Managing Director of Rio Tinto on a salary applied for a home loan, would they seriously ask him to provide the company's last 2 tax returns?
I suppose its a matter of convincing the lender of the situation.
Cheers
Tom
With the above structure or the initial split loans against the PPOR, they should both have the same affect deductibility wise.
As you mentioned you have a package account, you would most likely have an offset account. Just link that to the PPOR loan portion to use as a tool to pay off the non-deductible debt sooner.
Cheers
Tom
Unfortunately it becomes a mixed purpose loan now and is not the most efficient way of doing things. I dare say you can claim interest proportionally but as Jamie mentioned, see your accountant to confirm.
Cheers
Tom
OP is looking to change to interest only repayments, ANZ obviously looking for new application, new val, etc, so LMI might apply.
However as Jamie mentioned, would be an difference in premium and not new if LMI has increased.
Cheers,
Tom
Terry, would it be accurate in assuming that the OP wouldn't be eligible under the 6 year CGT rule even if they met all the other conditions if it arose in the future due to it being a IP for the first two weeks?
Cheers
Tom
What I find puzzling is why Julia comes out and offers a $50 million dollar assistance package to retrain 500 Ford workers ($100K to train each person??????), when every week small businesses are closing down with 5 or 10 workers and she and her Labor party couldn't give 2 hoots about forking out money trying to find them new employment and leave them to their own devices.
Sure 500 jobs being lost is a sad event, but why are Ford workers so much more special and getting preferential treatment than the average Joe in the same boat? Smells of hypocrisy and vote buying (though it won't help her).
Cheers
Tom
Also depends on how desperate the vendor is to sell. If they aren't, then I doubt you could take advantage of the situation.
Do your research, figure out what the fair market value is of the property and take it from there. If the vendor isn't willing then move on.
Cheers
Tom
Banks take into account a number of things before they will approve the loan. Obviously the stronger the application the more chance you have of being approved as it helps de-risk and make it more attractive to the lender.
Stable employment history, low consumer debt, clean credit file, decent assets position, high servicing capability, it all helps.
Each lender has different policies and serviceability requirements so what might not work for one lender may work with another due to different niches they have. Then depending on the LVR and lender you might have to obtain separate approval from the Lenders Mortgage Insurer as well.
Cheers
Tom
The front one would still be CGT exempt. The 2nd house would become your PPOR however if you sold it down the track you would only be partially exempt as there was a period before building when it wasn't your PPOR and subject to CGT.
You would need to confirm this with a decent accountant.
Cheers
Tom
Obviously you would need to seek out some professional opinion on this but from what I can remember:
Option 1 if you sell the subdivided land – Yes, you are liable for CGT as it is no longer classified as a PPOR.
Option 2 if you built at the back and moved from the front house to that – The front house wouldn't be liable for CGT as it was your PPOR for the entire time before you sold it.
Cheers
Tom
As Terry mentioned in Vic spouses can buy property from each other and at no stamp duty. So to expand on his suggestion a strategy could be to borrow 20% plus cost against your current PPOR and the 80% against the investment (no cross-collaterisation). IO with offset. All deductible.
Then in a few years when you move into the investment, one of you sells their half of the current PPOR (now turned investment) to the other and takes out a loan for 50% of the value. These funds released can be used to pay down the loan of the investment property that is now your PPOR, and the 50% you have borrowed becomes deductible.
Cheers
Tom
Hi polsis,
Others on this forum might be more helpful, but is this owned as a tenants in common type where you have 50% each? If so, I cannot understand why the accountant has advised for your dad to list all the losses, as they should be divided equally between the both of you. Likewise when you sell it, any CGT profits are proportioned equally.
Cheers
Tom
