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Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of unlimitedunlimited
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    @unlimited
    Join Date: 2005
    Post Count: 21
    October 24, 2013 - 7:46 am

    Anyone can advise how long the depreciation schedule will last?

    I mean if I ask QS to check my property in Feb-14 (for FY 2013-2014), and my accountant is doing my 13/14 tax return in Apr-15.

    Is this depreciation schedule report can still be used for my 13/14 tax return?

    Thanks.

    Profile photo of unlimitedunlimited
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    @unlimited
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    Post Count: 21
    June 17, 2013 - 6:15 am
    Jamie M wrote:

    If they don't – there's plenty of other options out there.

    Just do yourself a favour and work with someone that sets up these types of structures daily. An everyday branch banker is probably not going to understand what you're aiming to achieve.

    Hi Jamie M,

    Can you please advise about other types/structures for this, that you know/aware?

    Thanks.

    Profile photo of unlimitedunlimited
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    June 16, 2013 - 12:23 pm
    Terryw wrote:
    Don't mix personal and investment borrowings in the same loan. You will be able to apportion it easily enough to determine deductibility initially, but as you put more money in it will become a nightmare. Also any further deposits will be coming off the investment portion as well and this will result in more tax.

    It seems to split/separate the loan is the only best solution.

    Hopefully my lender allows me to do this easily.

    Thanks.

    Profile photo of unlimitedunlimited
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    June 16, 2013 - 12:22 pm
    Qlds007 wrote:

    Building a property portfolio is more about the structure and set up rather than the bottom line interest rate.

    This is the mistake many new investors make and they end up paying for it later.

    I couldn't agree more with what you said.

    That's way I always try to plan ahead before I even start.

    Thanks.

    Profile photo of unlimitedunlimited
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    June 16, 2013 - 11:31 am

    Thanks Sure Harvest.

    Your explain is very detail. I always like the detail. :)

    Sure Harvest wrote:

    b) your tax deduction is not the RATE (variable or fixed) but it is regarding the costs to hold the investment, eg the interest, depreciation etc. My understanding is the interest paid for the investment property is tax deductible, which is fine if it is variable.

    About this quote, what I mean by variable is if the LOC is not separated (mixed) with personal loans, then the interest is very hard to calculate.

    Eg. In July, rate 5.99.. In August to Sept 5.74… In Oct to Feb 5.49, etc…

    My point is very hard to calculate the 115k when the rate is variable, and complicated for ATO to check this as well.

    If it's fixed, then it's easy to calculate.

    About 90% LMI, it's a great idea… But I think my serviceable will be taken into account too, isn't it?

    Again, thanks for your information. :)

    Profile photo of unlimitedunlimited
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    June 16, 2013 - 9:28 am
    Qlds007 wrote:
    Unlimited, just to clarify that the 150K LOC is a totally separate facility and not part of a redraw or mixed with your personal borrowings ?

    Assuming this is the case then sure draw 20% + acqusition costs from the investment line of credit (personally i prefer equity loans as they are charged at cheaper interest rates) and then take out a standalone interest only loan with a separate institution. There are some excellent investment products doing the rounds at the moment without annual fees etc depending on the loan amount and lvr.

    In regards to how you claim the interest on the 150K LOC if you operate interest banking thru your lender you should be able to print off a statement covering the interest charged for the year and you merely add it to the interest charged on the interest only standalone facility on the new IP.

    Of course before you proceed make sure you don't intend to buy another IP and end up using all of your LOC up as it is certainly easier to go to a higher lvr with a purchase rather than try and draw out equity at a later date.

    Also as mentioned make sure your new LOC is totally separate to your current PPOR borrowings or you will end up contaminating the entire intere

    Finally make sure you do not listen to your Bank / Banker if they tell you anything to the contrary.

    Thanks for this.

    The 150k is mixed together with the personal borrowing as well. This is Line of Credit.

    In my opinion, what Derek said is correct, in terms of separating this 20% into a second facility.

    But, I'm not sure whether my current loan provider will allow me to split the loans for this.

    Is it common for the bank to split the loan easily (because the loan amount will be still the same(no change))?

    Note that inside the 150k is my car loan, personal loan, etc.. The actual LOC is $200k. For my car & personal loan = 50k.

    It leaves the balance of 150k unallocated funds that is free at the moment.

    Thanks.

    Profile photo of unlimitedunlimited
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    May 31, 2013 - 10:21 am
    Terryw wrote:
    If it is in victoria you can transfer to a spouse without stamp duty. This will be a cgt event though. If you are looking to deduct interest then the transferee will need to buy if from you at full market value and borrow to do so. This can be done without or just nominal stamp duty in vic. Seek legal advice from a solicitor before attempting this.

    Thanks Terryw.

    My idea is to split the cgt to me & my partner.

    Because in my opinion, if the property under my own name, it means they will the capital gain from my income only

    Having the property under 2 names means the capital gain tax are shared (me 50% and my partner 50%). We lodged tax return individually.

    Is this correct?

    Thanks.

    Profile photo of unlimitedunlimited
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    May 31, 2013 - 9:27 am

    The property is in Victoria.

    JacM wrote:
    What are you trying to achieve by putting it in both names?

    My honest answer will be to reduce the tax from capital gain when we sell it.

    Profile photo of unlimitedunlimited
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    December 26, 2005 - 11:43 am

    Thank you so much for all the response..

    Now, what is gong to happen after 14 days after I (or my PM) sent the Notice to the tenant ? Do I need to send any-more notice, to ask the tenant to leave, and how long is the second notice ?? OR I don’t need to send more notice ?? Please advise me, since I am new in this kind of thing….

    Once again, thank you…

    Profile photo of unlimitedunlimited
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    September 6, 2005 - 1:28 am

    We haven’t search the property, because I just wanna get a picture whether or not it is possible for me to help him. I am pretty sure he can put 20% deposit.

    He has income (guaranteed). Is that possible to have both name (me&him) (or maybe a trust) on the title and use a Low-Doc Loan, and use my PPOR as security, so we don’t need paperwork ?? Any other idea ?

    Profile photo of unlimitedunlimited
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    May 27, 2005 - 1:08 am

    Thank’s for the response.

    I’ve still have several question regarding to the answer.

    To Terryw:

    Rates can be fixed on most low doc loans. The fixed rates can also be rather high on these.
    Are you sure you cannot obtain a ‘normal’ loan? When factoring in rent from the new purchase, you may qualify.

    Do you mean I can get the normal loan from the bank, not using Low Doc, but using standard normal loan from my work ?? If so, will they need to refinance my loan for my PPOR again ??

    To foundation:

    Use that cash to reduce the non-deductible interest payments on your PPOR. Principle payment or offset account is equally effective. You’d be hard pressed to find a better return from residential property investing at this point in time (IMHO).

    I think it’s a good idea to reduce the interest for my PPOR, and use the equity from my PPOR, in order to get the loan for the investment property. Is that what you mean ?? If not, is there any other option for me ??

    To Qlds007:

    Could always consider a 2nd mortgage cash back and receive circa 14% PA on your investment clients are starting investing with around $14000 cash only.

    I don’t really understand about this idea, to be honest. What do you mean by 2nd mortgage cash back ?? How do I receive 14% pa and only use $14,000 for the deposit ?? I really want to know and learn about this, because it is very interesting.

    Profile photo of unlimitedunlimited
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    May 19, 2005 - 2:24 pm

    Why do we need a large deposit ?
    Is that the same amount of money (deposit), that we’re going to spend, either in CBD or suburb ?

    Anyway, thank;s for the comment.
    [biggrin]

    Profile photo of unlimitedunlimited
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    May 17, 2005 - 3:00 pm

    Does it mean good to invest in Melbourne CBD apartement ?

    I realise the growth would be slow or even may be negative, but the rental return is very tempting.. [cigar]

Viewing 13 posts - 1 through 13 (of 13 total)