Don’t think the bank is trying to mislead you. It is how you phrase your question. I don’t think you can buy an investment property & then apply for the FHOG. However, if you had bought a FHOG property, changed your mind & decided to rent it out, that’s probably ok. However, suggest you check it out very carefully as there may be legal…[Read more]

Pardon my question, but what exactly is a D A Approved site?

Spock is right. Be very careful. Those rental guarantees are worth very little. Personally, I would not buy any property that I have no control over. Also remember that property appreciate because of the land content.

Depends on whether you have previous experience with rentals. If this will be your first one, suggest your wife buy out her sibling. While this property is rented out, take the opportunity to look for others.

It is importantthat you have a bank account opened in the name of the trust. Make sure you pay all your rents into that account. Similarly, all expenses are to be paid from that account.

As far as I am aware, you are entitled to claim all the normal expenses relating to a rental property ir interests, rates & taxes, insurance, repairs.

I once boght a block & build on it for rental. My accountant claimed for all the interest costs including when the block was vacant.

I think the logic behind that was the original intent was to have an income producing property on it.

I do not think it is a good idea to try claim for tax deductions if you are renting out your rooms. While you may appear to have a short term gain, you’ll lose out on 100% CGT exemption on your house.

It is not common to have duplex with joint garages anymore. Suggest you drive around Yokine, Doubleview & Innaloo to see what can be done on small blocks. Also speak to builders like Scott Park or Dale Alcock. They can be most helpful.

Should you go down the company line, please remember a company do not get CGT relieve. A savings of 50% can be substantial.

Tim is right. A shelf company costs abour $1,000 and the trust deed will cost about $200. Also, it is the company that acts as trustee for the trust. If you had purchased a commercial property, you’ll also need to be registered for GST & get an ABN.

My property developer mate tells me it’s closer to 30%. This apply to Perth properties. Not sure what is the rate on the east coast.

Interesting question, Vinh. I spoke to my banker who advise borrowings are based on your salary plus rental income. Apparently they take about 70% of your rental income into consideration. That includes the new property that you may be buying as well.

If the property was bought as an investment property & your intention was to get a tenant in, I would say all non capital expenses incurred are tax deductible. If you are concerned, just keep your advs as proof to the tax man if you ever get an audit.

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Depends if the property is +vely geared or -vely geared. Suggest it be in your name if it is +vely geared. If it is the latter, then preferably that it be in hubby’s name or even jt names.

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Depends on the IP you have. If its in a fairly expensive suburb & you can include the costs of outside maintenance into your rent, it may be an attraction. My experience is that its too much of a hassle. Most tenants cannot be bothered with it and it gets so messy when it is not attended to. It is a much better idea to get air conditioning…[Read more]

I tend to agree with Terry that it is of a capital nature and should be added to the costs of the house. To me, it appears to be the reverse of a selling agents fees, which is capital expense. Hope this makes sense.

I suppose you can sell your property to a family trust and then rent it back. However, you’ll have to pay CGT when you eventually sell the property. Also don’t forget all the associated costs like stamp duty.

Interests on vacant land are generally not tax deductible. However, suggest you talk to your accountant. In particular, reference is made to Steele v FCT97 ATC 4239.

I’ll sell the vacant land and pay off my principal residence. It is precisely because interests are not tax deductible that you pay off your house first. Hope this helps.

It’s ok to make directors salaries to reduce the profits. However, do take into consideration your PAYG obligations esp if you need to submit a quarterly statement. However, can’t see how buying a new car can reduce the profits as a car is considered a capital item. Then there’s FBT to consider as well. Much too complicated.