Cata, I don’t beleive you are correct on the ATO passing regulation against capitalised interest deduction claims. If you are referring to the Harts versus ATO case, the judges did not rule specifically on capitalised interest as an invalid deduction. Indeed they commented under other circumstances that the interest claim would be valid, but in…[Read more]

I have two investment loans with Homepath, and are very pleased with the low interest rates. The loans were refinances from other lender for the lower rates of Homepath, and the drawing of increased equity in properties for investment purposes. Organising the loans was straight forwards. After the initial internet application, express post of…[Read more]

Originally posted by Terryw:

You have your poprerty loan PI, and IO on the investment loan. You also have a LOC set up against your home loan. When interest is due on the home loan, you can pay this from your LOC. When rates etc are due for the IP, pay these also from your LOC.

Terry, why would you pay home (PPOR) loan interest from another loan…[Read more]

Stuart,
Referring to Wizard loans, restricting repayment periods to monthly does not mean the loan is more expensive than another variable loan paid fortnightly. You can simply increase your monthly repayments to whatever level your budget and planning allows to achieve your goals.

Cheers

Tasman

Originally posted by Stuart Wemyss:
5.87% is a very low rate. It’s 1.45% below the standard variable rate. There are some restrictions with these cheap loans so they’re not for everyone.

1. Only for purchase of owner occupier property (no refinance or investment).

2. Can only make monthly P&I repayments. This is a big downside because m…[Read more]

Originally posted by kwilko:
Hi Nat

Some IO Loans. These are base variable rates not discounted or honeymoon.

NAB LOC under package 6.47%
IO Base Variable Rate 6.47%
NAB Variable under package 6.37%

Suncorp: Elite Ready Access: 6.37%

IMB- Budget Investment Loan : 6.45%

Bankwest- Lite investment loan : 6.45%

ANZ: Breakfree package: Variable…[Read more]

Hi Obiwan,
I tend to agree with Ausprop. The Australian property market although in a post boom period, is in a fairly sound positon.

The Australian economy is strong, with China GDP growth and demand for Australian mining output set to continue for a number of years.

Property yields are low, but they will improve whilst capital gains remain…[Read more]

Hi all,
The auto linking of defined words for site advertising within subscribers/contributors posts is unauthorised by contributors, and could be confused with subscriber links, and also construed as the subscribers advertising or advertising specifically endorsed by subscriber.

Originally posted by brahms:

Hi Ket
your post..

Currently the IP in WA is negatively geared but would be interested in converting, if possible, to neutral or positive!

me too..please continue

cheers

brahms

If you don’t ask, the answer is no!!

brahms

Your favorite saying should more correctly read, “if you ask the answer is no!”

Tasman

PS Obviously in a land and house package, depreciation expense is not applicable until the house is complete, other expenses such as interest, and council rates are applicable.

Tasman

Opps I will get it right this time. Normally you can only claim expenses from the date a property is available for rental, and arguably this occurs on settlement date. Land and house package is a special case, but I am not so sure about renovations, repairs etc.

Tasman

Misty1
Clarification needed. When you obtain a property,if your intent is to rent that property, then you can claim costs from the date of settlement even if it is not ready for rental, eg; with house and land package you can claim expenses from land settlement date while the house is being built. You must follow through with renting when the…[Read more]

Misty1
I believe the settlement date is when depreciation can commence for the new owner. The exchange of contracts/sale date represents the start of a handover of property process, and it is settlement date when the process is complete. The new owner is then in possession and able to rent the property.

cheers

Tasman

Misty
The withholding tax variation form can be accessed online by the following link:
“www.ato.gov.au/individuals/keywordlist.asp?k=Variation”.

The ATO provide an online form that you can fill in, save and edit at your leisure and submit when ready online to the tax office. The ATO then process the form and notify you employer pay staff in about…[Read more]

Rob,
If the ATO deem that you renting on a non-commercial basis (renting to relatives at a low rental would be a prime example) then yes you can only claim expenses up to rental income. Makes sense really, you can hardly expect to give free rental accommodation, and then expect to claim an IP business rental loss, as you are not operating on a…[Read more]

Originally posted by The Mortgage Adviser:

I would be talking to my accountant to see how much you are owed for the time since you have not lived in your wife’s property. It doesn’t matter how much rent you get or don’t get in an investment property as long as you can show, if audited, that you tried to rent it out. You would at least be able to…[Read more]