hw007

I beleive the 6 years starts again if you move back into teh property.

Speak to an accountant-not just any, find a good one.

Terryw
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Just a note on 2. You probably wouldn’t have to pay the CGT until you lodge your tax return. It might be an idea to delay it as long as possible (until Feb?) and keep the money in your account earning interest.

And is it possible to claim one of these properties as your PPOR? Did you live in either at any stage?

For an accountant in Sydney try Bruce Whitting. http://www.mintgroup.com.au (I think)

Terryw
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If you want to sell, another option is to sell your property to the trust (trustee). that way you can sell and keep it at the same time. It will save paying agent’s fees and the hassle. Your only going to replace it with another IP anyway. I suppose it depends your expections on growth and rental income.

Terryw
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Vul

I had the same problem with an overpriced course I did in SYdney a few years ago. I ended up reporting the company to the Dept of Fair Trading and then they quickly gave me the refund.

Terryw
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Borrowings for a trust or company has the same effect as borrowing as an individual. This is because the bank will require the Trustee to guarrantee the loan. If teh Trustee is a company, then all directors must guarrantee the loan. It appears on your CRAA.

Terryw
Discover Home Loans
North Sydney
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Fullout

Don’t do it. It is not worth the very high risk of losing all you money for a mere 25%.

A lot of HK disciples recently lost all their money when the developer went bust-some fraud involved as well. Some lost $300,000!

try
http://www.chrisbatten.com.au
http://www.taxlegal.com.au

Terryw
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There was a whole development that went bust recently. Many people have lost $100,000 and more in this mezzanine finance investment. And the company involved was allegedly intorduced to investors through a ‘investment’ company famous for Mezz finance.

Terryw
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I also rent while at the same time owing many investment properties.

One good idea is to live in one of your rental properties as your PPOR for a short time. It is then CGT free if you sell (within 6 years)-even if you rent it out. At the same time run some sort of business from home so that you can claim part of the rent as a tax deduction. And you will be able to rent for a fraction of what it would cost you to own the same property.

Terryw
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hwd007

You can make some good money doing this. One of my clients is doing it now and I managed to get him 100% finance for the whole thing. He has purchased some blocks of land off the plan (ie before subdivision) and is going to build duplexes on the blocks. We could get him finance based on the end value of the townhouses and there was enough profit in it for him to capitalise the interest until completion.

What you need to do is get the DA application in as soon as possible as this is what slows you down (maybe before settlement?). It could take a month to get through and cost up to $10,000. You will also need a fixed price contract for construction so the price doesn’t blow out, and arrange finance. You could even sell off the plan to minimise your risk, or go for it. if their is enough profit in it, you could keep the lot as the LVR at the end should be around 70% or less (otherwise there is no enough profit in it!).

Terryw
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