Forum Replies Created
- JacM wrote:Oh you are right! Says so on his info sheet http://www.terryw.com.au/ . How have I gone this long and been unaware. Angry with myself.
Yes Jac, I have been a broker about 13 years now. Also qualified in tax, law (and financial planning – almost.)
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes. Depending on what it is. New stove for example will be depreciated over 5 years or so. If you move in within only 2 weeks of fitting this then you could only claim 2 weeks worth.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Gee that is a high rate – you will be pleasantly surprised at the drop in interest each month!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
In a SMSF it couldn't work if the vendor wanted to take a charge over the property.
Other entities should be ok. But the problem will be finding a lender willing do lend on this basis. Last time I looked I could not find any main stream lender. But that was a few years ago.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
minds-eye wrote:Hi, newbie question here. I've just learnt about the benefits of Interest only + Offset account just yesterday.Is it fair to say that If i had a P+I loan repayment of 850 per week (500interest,350principal) would it be effectively exactly the same as paying 500 on IO and putting 350 into the offset account?
To me, it seems like a no brainer to use IO because you have a great deal more flexibility + cash liquidity.
What is the catch here? It is harder to secure an IO loan? Do banks prefer you to have P+I ?
That is correct. The only risk with hte offset and IO is that some people are more tempted to spend the cash.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
What is the idiot going to report to the police? The shed has been used to grow drugs or something? Where is the proof.
I would report to the police that he come around and hassled you. It would be recorded on their system and can therefore be used as evidence if something did happen in the future.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Its a bit of a concern that they were driving around and looking for you and that they found you too! These blamer type people can be a little crazy when they don't get their own way. I would report it to the police.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
HarryMarcus wrote:Hi all,I recently purchased (what was intended) to be an IP property (apartment) that I'm renovating, which will hopefully be complete in two or so weeks. Upon completion, I believe I've conservatively manufactured $40-50k.
My PPOR is located within the same suburb and currently has approximately $100k in equity.
This is where it gets interesting. I intended on renting the new property out however I did some research on CGT and realise that if I move into the property it would be considered a PPOR so will be CGT exempt.
What I'm unsure of is:
- If I move into the new property, will my old PPoR remain CGT exempt for up to 6 years?
- How long must I remain in the new property before I can sell it without triggering CGT?
If however, my current PPOR loses its CGT exemption status, would selling it at this point in time to realise the equity in cash and moving on to the new PPOR be a wise idea? It would be a downgrade but if it's a short period of time the exemption of CGT would make it feasible.
For what it's worth, weekly holding costs of either property are virtually identical.
Some advice to a newbie would be greatly appreciated.
Thanks,
Harry
Moving into the second one immediately could assist you down the track. You won’t know which one will have the most capital growth until much later (maybe they will be similar growth because same suburb). But the good thing is that you don’t have to chose which one you will nominate for the CGT exemption until the year you sell. So if you make sure both could qualify as the main residence then you may be able to wait 6 years and then reassess.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
JacM wrote:re: If I move into the new property, will my old PPoR remain CGT exempt for up to 6 years?No. Once you move into another property that you own, your original property is immediately no longer eligible for the exemption. The only circumstance under which you can sort of have two PPORs on the go at once is if you are in the process of selling one.
Jac, not neccesarily so. The old PPOR could still be nominated as the main residence and the exemption applied for up to 6 years. Cannot also nominate the new one though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why not move in first so the whole period can be considered as your main residence? If you rent it first any capital gain will be apportioned over time.
Will you pay stamp duty? if not you cannot claim it.
LMI would need to be apportioned
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You don't necessarily have to lose your 0.25%.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Certainly not a scam. This has been around for hundreds of years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Joe, generally a LOC slighly higher.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Consider structure set up too.
Future deductibility, savings, CGT etc. It may be posisble to set it up so that the first proeprty could be CGT free by simply living in it briefly.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Property is subject to CGT. One exemption is for main residences. If you can establish it as a main residence first and then move it and don't rent it it could be exempt indefinitely.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I would prefer a LOC initally so as to maintain deductibility. A standard loan will cause problems unless you can directly access money available in redraw.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It is very rare for a val to come in over purchase price. I had one once with a unit. Similar unit next door sold for about 20% more. The bank was able to give a 95% LVR loan based on pp, but not LMI because they are able to base this on valuation.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like your broker is not capable – make the switch sooner rather than suffer the consequences of more hits on the CRAA etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It would be the lower of the market value or contract price. If you buy if for $95k that is likely the value that it will come in at
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Freckle wrote:Terry can confirm but the owner and agent are required by law to disclose anything and everything that is material to the sale. Any component of the property be it the house, out buildings, pools, verandas etc etc that have been constructed without council approval IE a permit effectively renders any contract null and void.Not necessarily in NSW. If the thing that is not disclosed is known by the other party then they can rescind the contract in x days, but if they chose not to, or until they do it would be binding.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au