Vic,

You can lodge a Nil return for as many quarters / periods as you like.

If the ATO believe the ABN is inactive  they may look to cancel it however you would merely state that the business is pending and you need to retain it.

process of forming multipule trusts and going garantor against each new trust. Essentially this is a way legally tricking the bank into lending you much more than it wants to. Apparently business banking lenders are much more flexable ?

Just to re-iterate it does not work !!!!!!

Pro pack discounts vary depending on whether the deal is full doc or lodoc.

Normally for borrowings over 250K  it is 0.7% discount so around 6.15 – 6.25%.

DWG

Yes perfectly legal and a strategy we put place for client all of the time.

Especially works well if the property had been your PPOR at one stage in the last 6 years as their is no GST liability.

Sure there is some Stamp Duty to pay and this needs to be weighed up but depending on the difference in marginal tax rates and the actual size of the loan it can be well well worth  it.

Hi Harls

Yes not easy to fully understand i agree.

Structuring the loan to avoid cross collaterlising the 2 securities is probably a good idea however you dont want to use your own cash on a deductible loan when you still have a mortgage on your ppor (the interest on this is non deductible).

Your mortgage broker should be able to assist you with this.

On the question of Capital Gains Tax remember this is only applicable if an when you actually sell the property. 

The Tax is based on the difference between the net sale price and the net purchase price (plus any Building Write Off already claimed).  There is a 50% concession where the asset is held for more than 365 days.

Settled on 14 blocks of land in Western Qld at $9000 a block Dec 2007.

Sold them all and settled Nov 2008 at $38500 each.

10% CGT you have to love it.

Hi Bozena

I am based in Brisbane but am not here merely to tout for your business.

From what you have mentioned it sounds like your existing loans have been done on a lodoc basis.

Your Broker is correct that 80% LVR is probably the maximum you can get on lodoc these days (although the choices there are disppearing by the day) . Unfortunately not all mortgage brokers are property investors and therefore do not fully understand a clients needs or requirements.

You can always bounce some figures off me if you wish. I do have one or two happy forum clients on board as a reference.

Hard to believe that 0.5% discount is standard and the extra 0.2% requires credit approval.