I am no accountant, but would think if you have not lodged a tax return during this period and the wrap has fallen thru, then you could/should probably just treat it as a rental property – claiming interest, legal fees for eviction etc against the ‘rent’.

Can you let us know how the eviction goes? – Good luck,

Terryw
Discover Home Loans
North Sydney
[email protected]

Have a look at the API magazine, there are a few advertising in there. I think ‘spotters’ are different to buyers agents. Spotters just find a property, buyers agents are usually licenced real estate agents and can find, and negoitate on a property for you – hopefully saving you the time and hassle and saving you more than their fee.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t see how that could have happened.

With a wrap, the title stays in the wrappers name. So it owuld have been in the retiree’s name. So the client – the wrappe- would not have been able to secure a loan against this property. Unless they tricked the owner into offering a guarrantee etc. – In such a case, this oculd happen to anyone, and the wrap would have nothing to do with the process.

Terryw
Discover Home Loans
North Sydney
[email protected]

A few years ago I refinanced a wrap client out and had no problems. A month later I went to the same bank and it was a different story. The LMI people would not consider a ‘wrap’ to be a genuine purchase as of the date of the cotnract – 2 years earlier. So despite the property having grown considerably, they would only take the contract price and not the current value. Because they paid a 20% premium when they purchased they would hoping for a 90% LVR loan on value. Then bank was willing to do it without LMI at 80%, but couldn’t get it higher than this.

So in the end I could not do the deal, and later heard that they went to another broker who did it, by issuing a new contract with new ‘price’ on it. ie they tricked the lender.

Terryw
Discover Home Loans
North Sydney
[email protected]

Some will charge a percentage of the price – around 2%. And some will be paid a commission from the real estate agent selling the property which they rebate against what you pay.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hey are you trying to talk up the market to increase your capital gains!!

Terryw
Discover Home Loans
North Sydney
[email protected]

Yeah, it restarts again if you move back in, and as Monopoly said, you can only have one PPOR at a time.

Here is an example from TD 95/9 :

Gary works for the Department of Foreign Affairs and Trade and is posted overseas for a period of 4 years. While he is overseas, his post-CGT SPR is rented. On return to Australia, Gary resumes residence in the dwelling for a further period of 4 years. He is posted overseas for another period of 4 years. The dwelling is rented again during this absence. On return, Gary sells the dwelling and elects for the purposes of subsection 160ZZQ(11) for two periods of income-producing use totalling 8 years.

Subsection 160ZZQ(11) treats the dwelling as Gary’s SPR during the two periods of absence. This is because the dwelling ceases to be Gary’s SPR on two separate occasions and the periods of income-producing use have not exceeded six years in relation to each period of absence.

Terryw
Discover Home Loans
North Sydney
[email protected]

Peter Spann’s new one is good:
“How to buy $10 mil worth of property in 10 years”

Terryw
Discover Home Loans
North Sydney
[email protected]

Freedomfinder

You could try low docs that are not mortgage insured such as:
Suncorp – 80% LVR soon to change i beleive
ING – 76% LVR
Adelaide Bank – 76% LVR
ANZ 60% LVR etc

Terryw
Discover Home Loans
North Sydney
[email protected]

I think this should be fine. If you are borrowing for things related to investments/business then the interest on these borrowings should be deductible. I agree with this stategy, for example, if you had to pay $300 in insurance you should borrow the money from your LOC and then put the $300 you would have used off your home loan.

BTW, I have seen an accountant and a solictor suggest that capitalising interest is still possible if done correctly. The ATO has not necessarily banned this as the Hart’s case related to a specific arrangement only.

Terryw
Discover Home Loans
North Sydney
[email protected]