You are buying an option on someone else’s property. They, the owners, are then finding a buyer to sell the property to. The buy would pay the owners a fee and because you have an option on the property the owners would have to pay you a fee to prevent you excerising your option.

It could work in NSW. No licence would be needed by you or by the o…[Read more]

You mean your costbase?

No, those calcs are not correct. What about the value of the property when you received the gift?

Nope that is fine.

You will need some legal advice on the trust issues – sounds like it will be messy with multiple people being invovled. How will you pass on trust owned property on death on one or more of the people.

You will also need some tax advice on the loan structure. Borrowing and parking in the offset wil create another mess and the loan interest won’t…[Read more]

Very unlikely you would be the sole beneficiary of a trust – unless it is a bear trust.

I used to be a financial planner with the Dover group http://www.dover.com.au/. I suggest you contact them for a referral as they are one of the best groups out there – no banking ownership and all of their advice is checked by head office and a law firm for sign off.

Ideally you would want to borrow to repair or improve an investment property – unless you have no non-deductible debt perhaps.

Richard’s idea is good. Perhaps you could use a related party loan to pay the tradesman and then refinance this with the bank once complete.

Ideally you would want to borrow to repair or improve an investment property – unless you have no non-deductible debt perhaps.

Richard’s idea is good. Perhaps you could use a related party loan to pay the tradesman and then refinance this will the bank once complete.

Its a Porky Pie!
Or perhaps a half truth. Rent would only be deductible if it relates to the production of assessable income – such as operating a business from home (not a home office) and then it would need to be apportioned.

He should seek specific tax advice.

There is no minimum period legiislated to make a property the main residence. It is not 6 months. Receiving a deposit will not generally be a separate tax issue. It is generally the date of entering the contracts (but not always).

What do you mean by two lots?

You would have to pay stamp duty on your purchase and the person you sell it to would have to pay stamp duty as well, so that would be 2 lots.

It will depend on the circumstances. Just using the property is not enough. It must become the residence.

No minimum stay, but you need to establish the place as your main residence. So you must reside their exclusively for that period.

Its simple really

Lets say you have a $100,000 investment loan at 4% pa and $20,000. Depositing the $20,000 in the offset account will save you $1,600 in interest per year. This means you have $1,600 in extra income and will pay tax on this.

Now if you put $20,000 in a term deposit at 4% you would have $1,600 per year in extra income and would…[Read more]

How do you think this will increase your affordability?
(see the last section of my post).

When the courts make orders to rearrange ownership of property they do take into account who owns the property and who has paid for it. But they also take into account non-financial contributions.

So some investment structuring strategies could work against you in a family law dispute. One strategy is for spouses to keep finances separate and to…[Read more]

If it was less than 60 months since you took the loan and incurred the LMI then part of it may be deductible in the 2015/16 financial year – as long as it was rented at this time.

This statement could be true, but it is not always correct.

A main residence could be exempt from CGT provided certain requirements are met such as:
– not income producing and not able to claim the interest
– moved in as soon as practical after completion
– not claiming another main residence
etc

there is no 12 months rule. You are probably…[Read more]

A PPOR can be subject to CGT – it will depend on the circumstances.
You may have a job, but can you get finance is the important question. Serviceability has tightened up conisderably and this will get worse in the near future I believe.

Sounds like a risky investment to me.

But will you be able to get finance to settle in 2019?