The best thing to do is buy an IP under your SMSF
Unfortunately there are many laws that need to be followed. If you are in breach of these laws then you may be dissallowed the tax deductions and be taxed at 47%.

You can’t gear with SMFS ergo you need cash to fund your property. If you have more than 5 memembers in your SMFS then you have alot…[Read more]

Hybrid Trust with corporate trustee
Primary beneficiary being 2 different discretionary trusts and unit holders being superannuation fund, individuals, corporate beneficiary and the 2 different discretionary trusts.

Personal
Corporation
Trusts – discretionary
– hybrid
– unit
Superannuation Fund
Offshore Trust and Offshore corporations (Canary Isl, Bahamas, Liecheistant, Nevada, Monaco, Austria)

The people with the highest income would purchase units in the trust and claim an income loss pursuant to ITAA 97. Because the cashflow is negative, there would not be any distributions from the trust.
U need an appointor, because there are four parties involved. The trustee is important because 2 different couples are involved.
U may also want…[Read more]

what’s your situation first?
do u earn > $80,000
do u have a family
are you a professional
are you at risk of litigation

is the cashflow of this property positive or negative
who will be the trustee? who will b the discretionary beneficiaries and who will be the unit holders
how is the gearing going to be passed?

Don’t forget the GST, depending the extent of the reno, when you sell, you may be liable for GST on the Sale
so if u sold it for $200k, you may be required to pay $18,180 GST on the sale, so it may not be worth it.
you should get a private GST ruling b4 u renovate

When u sold the reno, did you pay GST on the reno? Depending on your circumstances, you may be liable for a $25,000 GST bill on the sale of the reno, according to the GST act

Is the property predominately for residental premises, if it is, then its input taxed, ergo you cannot claim the GST you will be charged by the agent.

It it is commercial and you are registered for GST, you will be able to claim the GST paid back in your BAS either quartlery or monthly depending on your situation

Land tax is an annual tax, but…[Read more]

thanks

U need to work out your cost base.
Does the amounts mentioned include GST?
The land in question may include GST depending on the purpose u use it for.
Is the property subject to GST or is it input taxed?

IO loans are good for increasing cashflow, but another important point that everyone seems to forget is the taxation of inflation.

If u borrow $100k now and pay IO for 10 years, u still only owe $100k in 10 years time which is significant less if u take inflation into account.
Warren Buffet talks about this all the time

ru guys worried about the government removing negative gearing allowances?

yep, there are no CGT

not a problem

you don’t

PIA is a very basic software package which helps you assess the cashflow of the property

If you know what you are doing, you can work out the cashflow for yourself.

I do not recommend it unless you know how to work out the cashflow yourself first. When you know that, then the software is good, cause it works out the cashflow of the property…[Read more]

there are heaps, u just need to know where to look

who made up this 11 sec rule?

woop woop