Well there may be various things he can claim to lessen the pain – stamp duty, rates etc

Yes it would be a CGT event. No exemption if it wasn’t his main residence. And if he is a non resident then no 50% CGT discount any any gains made after a certain date (last year I think). He should seek tax advice as you should too.

He may also have to pay tax in his home country.

You should consider land tax from the get go, not once the threshold has been reached. It is difficult and costly to change land ownership later so plan ahead and minimise the pain.

Why wouldn’t they be invalid. First one is grammatically incorrect and ambiguous – what does it mean – do you need an engineer just to confirm that the trees are removed?

Manley wrote:

Whereas if I have my current home in a Trust then that debt would only count against my lending for that one bank I have the mortgage through and not through other banks. So for example now i have a $300,000 dollar mortgage, and they will only let me borrow up to 560k then i only have 260k to play with no m

This is not correct.

Yes, I will buy them all! I was just waiting for you to drop the price!

Could you please send me an email with your details and i will transfer the money.

Why do you want to pay off the loan? Why not use IO with an offset account and save the same interest but keep funds available for private nnon deductible debt/

Under s8-1 ITAAA97 any expense related to producing assessible income cna be deductible.

But you may have problem. If you have redrawn from a non deductible loan you will be charged one large sum of interest each month. Only part of this will be deducctible. That is easy enough to work out. However if you are repaying this loan by paying PI and/or extra repayments then each of these repayments will be coming off the whole loan. So what this means is you are reducing the investment portion of the loan too and thereby diverting funds away from paying off the home loan sooner. This is costing you money by making more tax payable. This in turn means less money to go off the non deductible debt and compounding over 20 to 30 years this would be a heap of money.

Solution – see a tax advisor about splitting your loan now. Split into the relevant portions and from this point have the investment portion IO and then you can pay down the non deductible portion quicker and save more money.

superAndrew wrote:

I also have a question about the “thumbs up/down” and “star” rating system. Why do some posts have one or the other?

Sorry, misread – Good question!

• This reply was modified 10 years, 7 months ago by  Terryw.

Yes they would jump considerably – if you haven’t renegoitated. It is rare for a loan to go 10 years

But if it does just think what would your rents be like then? Possibly double