Hi All,
First time I've used this forum for help, so really hope someone here will be able to assist as I'm becoming indecisive!
I'm self employed and my business has grown over the past 18 months. We are in need of more office space. I currently lease a commercial property. At the same time I'm increasing my salary, so need to think about tax offsets and benefits.
We are thinking about purchasing a commercial strata suite in my name and renting to my company. The office is new, so can depreciate and claim the capital building costs over the first 5 years.
Then we are confused about what to do next. We thought about purchasing a property for $500K (or less) and claiming the FHOG. Structuring this on a IO loan, and then moving out after 12 months to our family home. We were going to buy this first home in my name, again for tax deductions. But, then we got confused by reading that you can purchase an investment property and providing you have never lived in the property you can still claim the FHOG.
So, guess my question are: –
1. Does the commercial purchase sound reasonable? Also does anyone know if a 85-90% LVR is possible for commercial? (doesn't matter if not, just the bigger the loan the better the tax deduction)
2. Can you buy an investment property and later claim the FHOG if you have never lived in the IP?
3. If I purchase a IP in my name, and then purchase the family property in my wifes name, can she claim the FHOG for the family home? I understand that I cannot do this for the IP. (this is really for asset protection, especially as I'm self employed)
Any help would be greatly appreciated.
Regards
L
Hi dougie, to give you my response on your questions:
1) 85% on your commercial property is very doable (obviously depending on other factors such as servicing), to get to 90% you would be looking at utilising private mezz funders which will be getting overly expensive and being owner occupied would be quite difficult. Feel free to email if you would like more details.
2) My understanding is if you initially purchase a IP, you can no longer use the FHOG for a subsequent PPOR purchase (correct me if I'm wrong)
3) Again, I believe if you purchase the IP, your wife will be unable to utilise the FHOG
Have a look at http://www.firsthome.gov.au for brief details.
Hope this helps
Cheers
RhysTo answer your questions:
1).Does the commercial purchase sound reasonable? Also does anyone know if a 85-90% LVR is possible for commercial? (doesn't matter if not, just the bigger the loan the better the tax deduction).
A) LVR that high is unlikely without secondary expensive financing. 85% LVR is possible as long as the property has a good tenant and it is located in a prime location.
2. Can you buy an investment property and later claim the FHOG if you have never lived in the IP?
A) Yes you can as long as you have never previously owned a PPOR.
3. If I purchase a IP in my name, and then purchase the family property in my wifes name, can she claim the FHOG for the family home? I understand that I cannot do this for the IP. (this is really for asset protection, especially as I'm self employed)
A) Yes but remember her serviceability maybe limited. See answer to 2) above.Why would you not purchase your IP's in Trust for Asset protection !
Richard Taylor | Australia's leading private lender
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