Just go for Dale GG
http://www.gatherumgoss.com.au

Terryw
Discover Home Loans
North Sydney
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Westan

The mortgage contract will specify what you have to do. eg with one of my ANZ mortgages it states:
“If anyone succeeds me as trustee of the trust, I will make sure that my successor executes whatever documents ANZ requires to ensure that this mortgage is binding on my successor”

If the loan is in the trust’s name and you are guarranteeing it, and you then set up a company with yourself as Director, you would still be guarranteeing the loan anyway. So there would not be much difference, but a few forms will need to be filled out.

Terryw
Discover Home Loans
North Sydney
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not all low doc loans are mortgage insured, but banks are already hedging their risks by having lower LVRs and higher rates for these loans. I don’t think they have a higher default rate than the normal loans either. And it is not just people who do not have the income that use them. Many people just use them for conveniance too. If you are self employed with a few companies and trusts it is a real hassel providing all the tax returns etc

Terryw
Discover Home Loans
North Sydney
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if it relates to your earning an income, then it should probably be allowable. You just have to be able to justify it if you are audited.

Terryw
Discover Home Loans
North Sydney
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I don’t give anything to tenants. but sometimes buy investment books as presents to ‘loved ones’ and then claim the costs as a deduction.

Terryw
Discover Home Loans
North Sydney
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I think a corporate trustee is ‘safer’ because if the trustee is ever sued, then the company has nothing, while the individual trustees personal assets could be exposed.

You can change trustees, but have to be careful you do not trigger a CGT event. If the beneficiaries are changed substantially, then the ATO can deem one trust to be closed and the other opened, so they treat this like a sale and therefore you could be up for CGT and stamp duty. So make sure you get expert advice.

Terryw
Discover Home Loans
North Sydney
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Rubbachook (nice name), I think you don’t really lose the tax deductibility, but rather don’t get any extra, you should still be able to claim the interest on the original loan amount for the IP, but not, as C2 suggested, the increased amount as the purpose on increasing htis loan was to pay not business related debt. (gee that was a long sentance!)

Terryw
Discover Home Loans
North Sydney
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If you are going to be living in it, I would think it wise to consider using available funds to buy your house first and then borrowing on this for deposits for your IPs. this way you could decrease non deductible debt.

Terryw
Discover Home Loans
North Sydney
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Hi

Before the ATO can tax you, they have to know about the income. I’ve lived and worked in Japan before []

Terryw
Discover Home Loans
North Sydney
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Hi Fatboy

I agree with Phil and Annaw2 in that it would be better to pay down your PPOR mortgage first and then borrow the money back before you invest. You will be saving interest and increasing your tax dedcutions if you do.

Terryw
Discover Home Loans
North Sydney
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