Terry: mmm if only I can employ her to take care of our daughter it’s more than a full time job

On serious side, I might look at setting up a company and employ her

Terry: interesting suggestion regarding the trust, can you tell me more about it? will I be able to set it up and channel my income there?
Richard: I’m in queensland and apparently I would be exempted if it’s from single ownership to joint ownership but not the other way around. I’m happy if I’m wrong though

Wow… That really put things into perspective. The only way really is to come up with the cash deposit if I want to purchased new ppor because by using current ppor equity I wouldn’t be able to claim deduction even if it’s turned into an ip.

I’m even on the worse shape that I thought I was, coz now I would have to save that deposit somewhere…[Read more]

Thank you Richard for your input
it does sound abit messy doesn’t it.

One more question though

“Unfortunately even though your current property is used as security for the new PPOR the interest is not deductible once you move into the property.”

why can’t I claim the interest since current property is going to rented out?

Bump

Thank you sonya,i have got around 290k loan on current ppor, i would keep it as an ip. I am looking to refinance therefore there would be associated cost involved, therefore i am not sure which costs are actually tax deductible and which ones aren't.If i receive the rental from now till august does it mean my house is an IP on the settlement day?…[Read more]

7 years as maximum? So let’s say I live in a property for 10 years, rent it out for 5 years, the cgt exemption only applies to 7 years? Making 8 years are taxable instead of 5 years?

I don’t really get it guys sorry yeah I’m dumb

so if you bought a property, rent it out for less than 6 years and you don’t have to pay cgt?

As long as u don’t claim any cgt exemption during that period of course

am I right here?

You are right, I didn’t understand it before

guess I just have to swallow it this time or start fresh by selling this property to avoid all sort of issues in the future

cheers

Yes I will refinance to a total of 750k and split it to 500k and 250k structure. What I am trying to get is to utilise my redraws without changing the loan amount or redrawing the money

sorry if I sound confusing, I am confused myself

it’s just abit unfair we can’t redraw our extra repayment for private use without tax issue down the road

Thanks Terry that’s perfect answer
cheers

I see what you mean Terry, but how would they know considering when I turn this ppor to an ip I would refinance the loan anyway. Therefore the only thing that’s apparent was my starting new loan, which will be the total loan value minus the money I have withdrawn.

The redraw is for new ppor deposit by the way.

Regards

But at this point my current mortgage is not tax deductible because it’s a ppor, so if I redraw now as opposed to when it’s turned into investment property, isn’t it fair to assume that should be ok?

what if i redraw now, months before i purchase another property to become my ppor, that would be good idea as well yeah?