All Topics / Legal & Accounting / Help with setting up Loan structure

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of troy6225troy6225
    Participant
    @troy6225
    Join Date: 2010
    Post Count: 26
    September 10, 2010 - 11:50 pm

    Hi,
    Situation:- paying off residential home loan, purchasing investment property and need to set up best structure for tax benefits.
    If the rent does not cover the monthly Investment Loan interest repayment is it beneficial to have the additional funds come from the investment pool(LOC) or is there no tax benefit and therefore the additional funds should directly be paid from own funds.
    Any information is greatly appreciated.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 11, 2010 - 2:34 pm

    Yes, definitely, you should look into setting up a LOC and borrowing to pay any short fall on the investment property, or even the whole cost of the investment property. There is no sense in you using you own cash as that will mean it will take you longer to pay off your own home.

    You will need careful advice to set this up and should see a tax expert and get a private ruling or face the risk of the interest claim being disallowed.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of troy6225troy6225
    Participant
    @troy6225
    Join Date: 2010
    Post Count: 26
    September 12, 2010 - 9:06 am

    Hi Terry,

    Thanks for advise, do you or anyone know a good accountant for property in Geelong or Melbourne

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 12, 2010 - 9:21 am

    I would suggest you use bantacs.com.au for this. They have branches all over the place.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of troy6225troy6225
    Participant
    @troy6225
    Join Date: 2010
    Post Count: 26
    September 12, 2010 - 9:38 am

    Thanks Terry , much appreciated

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 12, 2010 - 9:43 am

    let me know how it goes and good luck

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

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