Certainly not all. But lots of illegal money lots and lots!

I would suggest you seriously look at offloading it as you could possibly put the money to better use and could buy another if you change your mind and come back.

Think of the opportunity cost of holding it -what else could you do and the effect on borrowing capacity.

But, it will probably double in price the year after you sell it!!!. That's how these things pan out.

I am a broker and do a fair few loans with ANZ. The broker has a toolkit which will tell us who the valuer is for a particular area. There may be 2 or more sometimes.

But when the valuation is ordered it is automaticly assigned. ie the broker cannot choose. The broker also will not contact the broker directly. If contact has to be made it is generally done online – updating details etc.

SO if you want to get your own valuation done first you could use a ANZ panel valuer and then hope it will be the same one who the valuation is assigned to – and hope they keep the valuation at the same amount.

Line of credit.

It was probably already crossed.

Wouldn't like to comment as this is not my area.

Yes it would.

Ignoring the fact that you live in it

If you sell for a $40k gain CGT would be at most $10.

First you take off all associated costs. say $6k

Reduces the gain to $34k

apply 50% discount = $17,000

This is added to your other income.

If you didn't have any or earned about $3k, tax could be nil

If you were on $180k pa the tax would be $7650 or so.

—

If you live in a property that has been rented then you could apportion the CGT on a time basic.

So if held 5 years and you lived in it for 1 year then maybe 20% of the gain is tax free.

CHeck with your accountant

From your question I don't think you do understand the concept.

Same principals apply no matter what the security is. So if you drew down $80k (ie borrowed) and parked this in a savings or offset account and then later used it for investment you will run into the same problems as outlined above.

The same laws apply no matter who the borrower is.

Interest is only deductible if the funds used are borrowed to invest.

You are borrowing and parking in a savings account before the investing. The direct nexus is thereby broken. Once the funds are in the savings account they are no longer borrowed.

However all is not lost, you may still be able to trace the money and there is a PBR which allowed interest to be deductible on something similar.

But, if there is any other money in the savings account then the full interest cannot be deductible and must be apportioned. The authority for this is the case of Domjan from 2004. Mrs Domjan borrowed money and put it in a cheque account for about 1 day just to write a cheque. She had other cash in the cheque account and this caused her to lose the full deductibility of the interest on that borrowed money.

eg.

Joe borrows $40,000 and gets an IO loan because the LOC rate was slighly higher. His accountant tells him there will be no tax problems and to just stick it in his offset account. 

The offset account has $20,000 in it already. Now it will have $60,000

The percentage balances are  33% private and 66% investment.

So Joe will, at best, only be able to claim interest on 66% of the interest incurred on the $40,000.

At worse it will be much less if Joe has put money in and taken it out several times – and it will be much harder to calculate.

I stand by my comments!

Doesn't matter if it was one hour.

You should seek tax advice.