You can do various things to reduce your CGT by reducing your income for that year. eg. prepaying some interest on investment properties, those 100% capital guarranteed share funds etc.

Terryw
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I have heard various reports on how much you need in your superfund to make it worthwhile. Some say as little as $50,000 would make it worthwhile. Do a web search, as there are hundereds of companies out there offering to setup and run your SMSF. Many have free seminars which you can go to to learn more.

Terryw
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Giddy Up!

Terryw
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Hi

I can’t concentrate hard enough through your examples!!

But my understanding is this:

If you move out of your PPOR and rent it out the interest on the loan balance as is, would be claimable. If you increase the loan to use as deposit for a new PPOR then this portion wouldn’t be.

If you intially started with a IO loan and a 100% offset account, you could pay any extra into the offset, so when you move out the deposit for your new PPOR could come from your offset. This in effect will make your interest payments on your new IP (former PPOR) all claimable. It is like increasing your loan and having the whole thing claimable. But actually you are not increasing your loan as the money is coming form a separate savings account, ie your offset. Therefore the ATO can not argue you are increasing a loan for non investment purposes.

And I beleive you could claim depreciation on a rental property that was formerly your PPOR.

Terryw
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BTW, I think it is very risky too!

Terryw
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And try not to get too many eggs in the one basket.

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Really there is not much to it. Do PI on your home loan or maybe IO with 100% offset, and IO loans on all investments. Pay as much as you can off your home loan and as little as you can for your investments. Any investment expenses such as rates etc could then be borrowed (LOC or redraw) and the cash you would have used to pay these could then be put into your home loan.

Paying all bills etc with a credit card can help by getting you points and can save you interest by leaving your cash in your offset longer.

Terryw
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It doesn’t cost much and will give you some insight into the real estate agents. You can also use it to enable you to sell property, and possibly become a buyers agent.

Terryw
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neither would I.

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Banks want to see how you are going to repay the loan. They are conservative so not having jobs doesn’t look good!! If you are self employed, with 2 years trading history, that is ok, but if your husband is just starting out in self employment, then they won’t take this income into account at all.

Terryw
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