Forum Replies Created
Try someone like Herron Todd White.
Richard Taylor | Australia's leading private lender
Rodeo
Upto 8 should be fairly straight forward.
Might not get more than 75% LVR though.
Richard Taylor | Australia's leading private lender
Depends on the numbers and the location.
Richard Taylor | Australia's leading private lender
Eric
Firstly welcome to the forum and i hope you enjoy your time aboard
In answer to your questions:
1) I am in NSW (Sydney), is the stamp duty tax deductible? If so, does this include the stamp duty for the actual purchase price
and the stamp duty on the loan?A) Ther Transfer duty is added to the Cost Base of the property and is therefore offset against any CGT down the track. The Mortgage Duty is a borrowing expense and therefore can be claimed over a 5 year term or the length of the loan whichever is the shorter. it is proportionalised in Year 1.
2) I heard mortgage insurance (if any) is deductible?
A) Yes mortgage insurance is another borrowing cost and again a in 1) above is deductible over 5 years or the term of the loan.
3) My loan is Principal + Interest (a bit different to the norm on this forum). Can I still get an accountant to calculate the interest portion each year for tax deduction purposes or is this only for investors with IO loans?
A) Each month your lender will set out the amount of interest charged for the period and at the end of the financial year end you will receive a statement advising you how much interest was charged for that year.
Richard Taylor | Australia's leading private lender
Hi Matt
Just rang the CBA Qld State credit manager who tells me that both wraps and RTB are definately not allowed.
Richard Taylor | Australia's leading private lender
Norm I have answered your email on this.
Richard Taylor | Australia's leading private lender
Matt
When did CBA or Maxis allow wraps or RTB's?
I can think of a couple of lenders that will allow it but certainly not these 2.
Richard Taylor | Australia's leading private lender
Sean
Yes you will need to pay stamp duty on the transfer but that can be added into the loan amount.
Your Accountant may not be too familar with the strategy as not all Accountant specialise in property and trusts.
Would need some exact figures to work out the entire viability but not hard to do.
Other issue is finding a Bank that will accept or understand why you want to do a transfer into a UT.
Shoot us an email if you need anything.
Richard Taylor | Australia's leading private lender
Alistair dont start me on the standard of the industry – lol.
I cant believe that todays garage mechanic completing his Cert IV can be out there tomorrow advising on Finance structures and precuring Commercial deals for multi million $$$.
You are right forums such as this keep records of what you say for all to read and you can be held accountable to at least the forum members. It is just a great shame the rest of the industry cannot be so accountable.
I hear from new clients so often that Joe Bloggs who did our home loan is no longer in the industry can you pick up the pieces.
Anyway mate my personal crusade over here is to improving standards all round.Good luck for 2008.
Richard Taylor | Australia's leading private lender
Where is the block of units located?
Richard Taylor | Australia's leading private lender
SB
Yes all is ok with the ATO as long as the structure is correct.
Would need to crunch the figures for you to ensure that it is viable but more personal details would be needed.Downfalls would include stamp duty payable on the Transfer.
To be honest most Solicitors / Accoutants wouldnt have a clue but certainly recommend someone if the numbers worked out ok for you.
Richard Taylor | Australia's leading private lender
Wow Mr now it all.
Too late is it to short. Perhaps i might just throw those Elliot Wave charts right out of the window.
The first 9 years of my working life At Chase UK as a SWAPS Trader counts for nothing.
Trading full time are we now. Oh really and what about the Recliffe refurbishments is that spare time work.
Low is when the smart money have decided that enough is enough and start to accumulate stock in volume.
God your type make me laugh.Richard Taylor | Australia's leading private lender
Look at selling the Melbourne property into Trust and borrow 100% of the current valuation using the net funds as deposit for your new Sydney property.
This makes the interest 100% Tax deductible and although Stamp Duty will be payable on the Transfer the savings will be vast over the years.
If you buy for 700-800K and have say $480K deposit the amount of non tax deductible interest will be affordable.
Richard Taylor | Australia's leading private lender
Have you considered selling the property into a Unit Trust / HDT borrowing 100% of the valuation and then using the surplus funds to pay down your mortgage on your PPOR.
This way you will be able to legally claim the interest on the entire loan balance and shift the burder of debt to a deductible expense from non deductible as it currently stands on your PPOR.
Certainly even at your current marginal rate if you intend to retain the property long term it will have a considerable difference on your net income.
Richard Taylor | Australia's leading private lender
Bill not a great loveer of having the business assets and your property assets within the same structure but that is a bit too late now.
I think the decision on what you do will depend on whether you decide to make the new IP your PPOR if so then probably you need to move pretty fast to recitify the situation.
Are you current loans all cross collateralised with the same lender ?
Richard Taylor | Australia's leading private lender
If you wish to email me some details I would be happy to have a look at the deal for you and advise you accordingly.
Richard Taylor | Australia's leading private lender
Hi Bill
Firstly welcome to forum and i hope you enjoy your time here.
To answer your question one would need more specific knowledge of your individual situation cirumstances.
A couple of points worth noting:
1) Your husband is self employed running his own business yet the current PPOR appears to be in his sole name which is not wise for an asset protection structure unless mortgaged to the hilt.
2) Moving from your current PPOR into the new IP will have consequences which will include non tax deductability of interest due to your occupation and secondly land tax issues as the PPOR will then be held in Trust and no your own personl names.
You probably need to consider untangling your current loan and entity structure before completion of the IP so as not to cause you problems down the track.
3) Is the IP held in a HDT or DFT and if the later is this the same as the current business entity.
An Accountant is all well and good for doing your figures but remember a QS will need to do the Depreciation report on the new IP which for the cost of it is money well spent.
Richard Taylor | Australia's leading private lender
Tracey
Remember the Bank valuation and the open market valuation maybe 2 totally different figures.
It is wise to hold 2 independant valuation assessments to be on the safe side these could be either an independant valuation from a favourable valuer or a market assessment from a local real estate agent.
The higher figure now will mean more stamp duty but less CGT down the track.
Same as everything provide and retain documentation and you will have no dramas.
Richard Taylor | Australia's leading private lender
Hi Ben
Your understanding is correct.
However bear in mind the ATO are currently looking very closely at HDT to ensure they were set up correctly.
A Unit Trust maybe an option if the negative gearing claim is important to you.Richard Taylor | Australia's leading private lender
You dont at this stage you look to short and then appraise the yields as time goes by.
Richard Taylor | Australia's leading private lender
