investment loan

[kingy]

hi guys,

i have a scenario here.

im about to purchase a place and dont want to pay capital gain tax later down the track when i plan to sell it... so i have to claim the place as home occupied. but to do this the bank wont be able to lend me the money i need to buy this property unless i put it as an investment..

ive been told by the bank that i should apply for investment loan and then moving in for 6 months and claiming it as home owner and move out again to claim rent... this way i wont need to pay for capital gain...

what are your thoughts?

 

[Aaron_C]

Also known as the 6 year CGT rule. http://www.ato.gov.au/corporate/content.aspx?doc=/content/86191.htm

You will still pay some CGT because the property was a rental from day 1. Although, the longer you live in it, the less CGT you pay.

 

[Terry_w]

Don't take tax advice from a bank staff member!!!

You can get the loan as an investment and live in it for 6 months and then move out later. You get the best of both worlds as your purpose of the loan will be investment overall and you can satisfy the tax act requirements for the exemption.

 

[Rolf Latham]

Don't take tax advice from a bank staff member!!!.

Why not

The corkers that come out are amusing arent they.

Is still love the one about that redraw and offset are no diff for tax purposes, they both save interest .


ta
rolf

 

[Terry_w]

Why not

The corkers that come out are amusing arent they.

Is still love the one about that redraw and offset are no diff for tax purposes, they both save interest .


ta
rolf

Or the one about "Why take IO on an investment property loan? How would you pay it off?!"

 

[Rolf Latham]

Or the one about "Why take IO on an investment property loan? How would you pay it off?!"

quote a few funders are no putting the magnifying glass on IO ppor loans...........even for a 25 year old FHB.

NCCP rigidity

Once someone explains the logic re IO 100 % offset etc , they are ok.............but its getting harder

Try doing an IO loan on a PPOR with NAB direct, they dont like it !

Heritage was the same

ta

rolf

 

[Aaron_C]

quote a few funders are no putting the magnifying glass on IO ppor loans...........even for a 25 year old FHB.

NCCP rigidity

But Bill Shorten said we should be flexible!!!

 

[Rolf Latham]

But Bill Shorten said we should be flexible!!!

Yes... and I'm sure Bill will pay for my increased pi cover as a result......

Ta

Rolf

 

[kingy]

thanks for the info guys...