Matt

I will then claim the interest as an expence and the "repayment" as income, so that way it is all tax neutral  (personal tax) ?

All depends on what type of Trust you have set up. If it is a DFT then the answer is NO.

No real benefit in having 2 offset accounts so put everything in the one.

Probably an idea to start speading your sik and looking at new lender for your IP's

Hi Robin

Quick answer

Is this possible? Yes it is under a SMSF

Approx what are the set up fees for the SMSF? All depends on your Accountant but a Deed can be set up for around $1500 max.

Approx what annual accounting fees? All depend on how complicated the transactions within the fund are and how much time your Accoutnant spends on the return. A SMSF needs to be Audited each year and there are few other ASIC requirements and levies. Allow $2500 / annum max.

How would I get started? Get your Accountant to form a Trust Deed, open the Bank Account and Transfer your existing funds proceeds to the SMSF.

Would i need to pay stamp duty? Buying in a SMSF is like any commercial transaction so YES you will need to pay stamp duty on the land. Remember you are unable to gear on a vacant block of land in Super and cannot borrow to build so need to think carefully about what you do.

Yes exactly would suggest that is the way forward.

Simply boils down to the purpose of the original funds.

Unless the original loan was an investment loan interest on a redrawn amount on an owner occupied property is not deductible.

If the loan had been an interest only loan with 100% offset then you would have been fine.

Need to separate the 2 account hence our suggestion of a line of credit.

Probably need more hard data to advise further.

Hi there

Yes it would be a separate loan but on the basis that 20% plus costs came to 200K then Yes the total loan balance on the first property would be $500K.

Interest is only charged on the drawn down balance so assume that you had fully draw the loan of $200K then interest would be charged on a daily basis on the full amount.

I am with Terry sounds like an absolute mess to me and a red flag to the ATO.

I would be avoiding the Banks as they would have no idea on loan structuring but keep things simple and separate.

Use an offset account for non deductible debt and maintain good records.

As long as you can support the loan by way of income there is no reason why you should be paying a higher interest rate.

Tommy

Hate to say from what i read she will not qualify for the FHOG and if you claim it run the risk of being audited simply because you refered to her as your fiance and this in its own right disqualifies her.

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

Trish no you dont need to go through an agent to purchase a property or indeed rent the property but in saying this of course you would need to locate a vendor who is selling privately if you wish to bypass an agent on the sale. His commission is of course paid for by the seller and not you so as long as this isnt factored into the price then they are not all that bad to deal with.

In regards to getting your children rent the property from you certainly no need to use a letting agent. If you wish to formulate a Tenancy agreement with them (and it is probably a wise move to cover yourself from the ATO) you should be able to download a sample from the local Tenancy Authority in your State. 

Now BJR there are plenty sources of free information available on areas, type of property etc so do as much of your own research as possible. Most mortgage brokers do not charge for their services so this is another area of free information in regards to lending institutions and their varying range of products. 

Read and educate yourself as much as possible and talk to others you will be suprised on how quickly you start to learn.