If you are unsure about the begativs of cross collateralising your loans i think you should read some of the past post both Terry and i have written.

If you use your own cash as a deposit remember you wont be able to have it back again and claim the interest as a Tax deduction. Most people want to keep their cash flexible as you never know when you might need it.

Yes you can GOM not an IP where a Capital Gain has been made though.

Hi F

In essence you can use upto 90% of the available equity so in the scenario above with equity of $110,000 then you would be able to borrow against $99,000 (ignoring the LMI costs of doing so).

The 9K is however a separate loan and therefore incurs interest however one advantage of structuring the loan this way is that the loans are separate and therefore not cross collateralised.

Hi MAQ

Firstly welcome to the forum.

Cant recommend an Accountant unfortunately but it is not as easy as that.

It is not a matter of just changing the name on the finance into a Trust name unless the property is also held in that entity.
Selling the property to a DFT will incur Stamp Duty as well as possible CGT so might want to think twice before rushing in.

Walter

In answer to your first question you cant. Any Transfer will incur Stamp Duty and in a gain has been made CGT.

With regards to the Tax rate payable by a Company.

If the Company was deemed to be involved in the business of buying, renovating and then selling property the profit would be consider as Trading stock and Tax would be payable at the normal Corporation rate of 30%.

D Wolfe no you are more likely to get the loan accepted at 65% lvr with a decent asset base (not talking a $1-2M but a decent asset base $5M + minimum).

Steve is referring to his dealings directly with the Business Banking section of the Bank. I for one can confirm that when we were active in the Vendor Finance market the Banks which openly stated they would not lend where the property was being onsold by way of an instalment contract used to welcome our applications with open arms in the Business Banking side totally contry with their own residential policy.

Whilst i totally agree with Terry that all lenders i have spoken to will take the guarantee as a debt and this will have an negative effect serviceability lending rules with certain Business lenders are different. i mean no recourse lending is still alive and well with the right Bank and dependant on your own Asset position.

Sean depending on where in the US you are looking at purchasing finance is possible within the US from a US lender.

No Australian lender will take a US property as security so if it is in a State where a Foreign National cannot borrow funds and you still wish to go ahead then you will need to use Australian security.

Again not many lenders will accept financing a line of credit to allow you to purchase overseas but we have ongoing 3 / 4 clients who we are working with who are doing this. Seems to a constrant flow of Australians buying abroad who needs asssistance with the finance structure. 

Yes either looking at a share portfolio or increasing income through options is one way.

Other way is of course buying a property and have the interest capitalised to a separate Line of Credit.
You would need to get specific Tax advice over this.

Alternatively, look at using a LOC to pre-pay the interest annual in advance each year and then having the rent and income going into the same account to reimburse to credit limit.

Also consider something fairly new so to maximise the non cash deductions such as Capital Allowance and Depreciation.
Remember whilst a property might start off as negatively geared it doesnt take long to become neutral and then positvely geared.

Individual information on your circumstances would be need to provide you with lending options.

Hi kactus

Firstly welcome to the forum and I hope you enjoy your time with us.

One point worth bearing in mind and that is if you rent out your place and buy another property the interest will not be Tax deductible even though you are using the investment property as security.

The "purpose" of the new funds will be to buy a new PPOR and therefore will disqaulify the interest from being able to be claimed.

Ideally you would use some of the equity in your current property and look to purchase an investment property or two.

You will need to structure the loan correctly to avoid having the loans cross collateralised so your Mortgage Broker should be able to assist you with this. 

If you really want to move out and rent out your place then selling the property into a Trust structure is still a possibility if the numbers work out.

Jac

Rule of thumb max loan 70% and no dont difficult to get a loan approved but just be prepared for paperwork coming out of your ears and a fair bit of lenders costs.

Do them fairly regularly and they dont get any easier.