It may be worth considering borowing more on the IP and keeping the cash for the car. IP loan would be deductible and lower interest rate than a car loan – which may not be deductible or fully deductible.

And, try to get a cheapy and make your money work for you.

Another terrorism incident in bangkok last week too!

You would be related parties – so can a smsf sell to a related party? I am not sure off hte top of my head. A SMSF cannot acquire but don't know about sell.

It would be a very good idea to get some advice first.
 

Sounds like you don't understand the concept of deductiblity of interest. This is determined on what hte borrowed funds are used for. So if you borrow against your old IP (eg LOC) and use this to pay down the new PPOR loan the purpose of the borrowings would be private and therefore the interest could't be deducted.

If A and B jointly own a property and A buys B's share the interest on a loan for this partial purchase would be deductible, generally, if that property is an investment.

This may entail stamp duty and CGT though. So you have to run the figures and see if the tax savings make it worth paying the stamp duty and CGT.

If your properties are in VIC it could be possible to do with only nominal stamp duty.

You cannot change a purpose after it has happened.

Ideally you would have used a 100% offset account and IO loan when purchasing the old PPOR and this would have saved you thousands in tax when you purchased the new one.

To fix/improve things now you could sell the old PPOR or if jointly owned sell/buy the other half and borrow to do so. CGT may be minimal but stamp duty could apply. If the property is in VIC you could be in luck.

Also, you have to consider the minimum loan sizes. I have seen some SMSF lenders have a min of $200,000

Powers of attorney cease operation at death!

If it was the vendor then how is she going to sign the contract and the transfer?

If someone is taking over the estate, have they been appointed by a court? ie Probate/letters of administration been granted?

If not then they have no legal authority until their appointment. It doesn't matter what the will says because you won't know if it is the last will and is valid until probate/letters of administration.

These things can drag out for many months and even if you do have a valid contract there could be many reasons why the property cannot settle on time – or at all in some instances.

So seek legal advice if this is the case

Death maybe another!!!

A vendor is more likely to die within 90 days then 30 days!

What effect will this have on the sale? any special conditions.

Insanity is another and so is bankruptcy and even divorce – what if the ex mistress lodges a caveat after your exchange?