Added to your other income and taxed accordingly. But there may be a double taxation agreement so you might get a credit for tax paid overseas – sort of

Seems like you have 2 loans related to that property – $150k and $500k.

Are you selling at a lost?

If you don’t pay off the $150k you cannot keep claiming the interest. You could keep the loan open as it is secured by another property you are keeping. But if you direct that $150k to the home loan you would still have another loan of $150k owing…[Read more]

I would say the builder is probably correct with this one.
Why did you agree to that clause saying they would not get the OC?

If I was you…

Probably borrow up to 80% of the home loan on owner occupied rates and use this to purchase the investment property without mortgaging it. But it sounds like you want more properties than 1 IP so go for 80% LVR on the investment property as well.

Once settled use the main residence loan to pay down the IP loan (to save interest…[Read more]

How did the vendor take money from your account?

Sounds like no body has paid the council yet to me. You probably received a credit for the vendor’s share up to settlement and you have to pay this plus your share to the council.

Best to check with your lawyer because if you don’t pay the council you will end up with a default judgment on your…[Read more]

No, they have paid you their paid of the council fees.
If you don’t pay the council will take action against you. you are liable.

Usually at settlment, in NSW at least, the purchaser will take into account the unpaid rates etc and receive a credit for this at settlement from the vendor but the new purchaser will actually pay the rates. Sometimes a cheque is requested from the vendor made out to the council and this is forwarded to council for payment after settlement.

Yes a surveyor would be the one to confirm boundaries. This should have been recommeneded by the conveyancer but most buyers wouldn’t do one because of the costs involved. I have never done one myself.

Perhaps the next door has done a survery which they might give you a copy of so as to save you some money – but you might want to check the other…[Read more]

Because this is legal advice a bit out of the grasp of a conveyancer – whose job is to transfer title.

If you have settled then there is not much point in talking to a previous owner.

Sounds like you didn’t check the boundaries of the property at purchase. I would forget using a conveyancer and get a lawyer to look at this – but perhaps worth waiting to see what they come back with first.

Seek legal advice before the trust does anything.

You will probably get a cheaper rate by drawing from your home loan and on lend to the trustee but many legal, tax and lending issues to consider.

Yes worth considering.

I have a client going through this at the moment in Sydney and he is looking at getting double what the property is otherwise worth.

You could potentially lend your personal money to the SMSF to do this, but watch out as this could result in NALI income non arms length income which would be taxed at 45%.

read some papers by lawyers
A good one is…[Read more]

Hi Rod

It is hardly complex. Split the loan, pay it down and reborrow. Once you have sold the investment the loan can be paid down and kept open for next time. Little effort is needed.

Saving $2000 would be equivalent to 4 weeks work for some people.

It is the most beneficial. But what happens if you take the cash out of the offset and use it for investment properties?

Hi Warren

You really need legal advice on this as it relates to trust law and the interpretation of legislation.

“We are very close to purchasing 2 properties through our SMSF”
The trustee of the SMSF may be close to purchasing 2 properties.

The trustee cannot use borrowed money to develop.
You cannot develop the properties that you don’t own,…[Read more]

Yes the valuer can access and do the valuation. But to get formal approval the titles really need to registered as otherwise what do they put on the mortgage documents.

I got a valuation for a client the other day for a subdivision that hasn’t been registered yet.

Trouble with this, Rod, is that when the cash is used the interest on the home loan would increase. This interest would not be deductible.
If on the other hand you had borrowed up to 80% and stored any excess cash in the offset account, when the time comes to use it you could split the loan, pay off one split and reborrow and use those borrowed…[Read more]

Similar to Corey, I would borrow as much as possible and buy a main residence and then debt recycle the debt down.

This will have tax and other benefits
– nice large CGT free asset going forward
– no rent being paid
– owner occupied rates on investment.

e.g your borrowing capacity is $600,000. You could buy a property for $750,000. Use an 80%…[Read more]

Yes you can, but both duty and CGT would be assessed at market value. This would not save you the hassle of doing the CGT return, even if there was no legitimate profit because the sale is a CGT event and you would need to declare it on the tax return. There are also asset protection issues to consider.