Depends on how risk adverse you are. Some people are really conservative and buy one at a time, others just buy as many as quickly as they can. Remember the earlier you own a property, the quicker you can acceess the growth.

Terryw
Discover Home Loans
North Sydney
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I beleive this has happened a lot more than the article indicates, but banks wanting to avoid bad publicity has decided not to alert police or prosecute offenders.

Terryw
Discover Home Loans
North Sydney
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The offset account doesn’t change you loan balance, so you will still ahve to make the minimum repayments. You will not be charged any interest if you have more in the offset than in the loan, so all of the repayment would be going to reduce the principle. If you change your loan to IO, then you may be able to just let the balance hover if you have an equivalent balance in your offset account.

You avialable redraw limit should be constantly increasing as you loan is being paid at a faster rate than normal.

Terryw
Discover Home Loans
North Sydney
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You should probably be looking at trusts rather than ‘business’. I think this is just a generic term, you have either indivifual name(s), company or trusts to use to purchase property.

Whether you can buy more properties would depend on your income as well as equity.

Terryw
Discover Home Loans
North Sydney
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Hi Start and Wayne

Yes, it varies between banks and can go as high as 3.1% of loan amount!! It also varies depending on whether the loan is PI/IO, amounts over $300,000 or over $500,000 and whether investment or owner occupied.

as a rough guide:
80.01 to 81% 0.41
81.01 to 82% 0.41
82.01 to 83% 0.56
83.01 to 84% 0.62
84.01 to 85% 0.72
85.01 to 86% 0.84
86.01 to 87% 0.95
87.01 to 88% 1.01
88.01 to 89% 1.12
89.01 to 90% 1.16
90.01 to 91% 1.54
91.01 to 92% 1.59
92.01 to 93% 1.78
93.01 to 94% 1.85
94.01 to 95% 2.04

Terryw
Discover Home Loans
North Sydney
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I would say no. CGT only applies to assets held more than 12 months. But the profit will be classed as income and will be taxed the same.

Terryw
Discover Home Loans
North Sydney
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I htink I recall reading somewhere that tax debts are the only debts that are never forgiven. So I hope you friend has done some good research.

Terryw
Discover Home Loans
North Sydney
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ANZ issued a bulletin last year to all brokers saying that they would be barred if they did a loan for someone intending to wrap! In their bulletin they seemed to confuse wrapping and lease options, suggesting they didn’t really understand the two.

But as Pelican said, it seems if you approach banks directly, sometimes the local branch manager will be able to do loans for wraps. It is a strange situation.

Terryw
Discover Home Loans
North Sydney
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maybe. Yes, you can rent from your familiy trust, and it can claim deduction.

A trust can only negatively gear if it has other income. If there is no other income then the loss cannot be distributed and must just sit there waiting to be offset against future income.

If the person is using a hybrid trust, then they can borrow to buy units in the trust and then offset the interest against their own personal income. But the ATO has put out a ruling which frowns on using a unit trust to hold a home that the trustee is living in. see TR 2002-18 – Income tax home loan unit trust arrangement. I don’t know how they would treat this arangement if it was done thru a hybrid trust.

Terryw
Discover Home Loans
North Sydney
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I think if these new items were an improvement on the old ones they cannot be a repair/replacement and must be classed as improvements. Therefore they must be depreciated – I am not sure if they would be classed as building or fittings tho.

ps not an accountant.

Terryw
Discover Home Loans
North Sydney
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