You are disagreeing with yourself on a public forum? Too much red wine on a fri night?
fright night
ta
rolf
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You are disagreeing with yourself on a public forum? Too much red wine on a fri night?
Hi, it's not a mistake to pay cash for PPOR. I did that too, before I bought other properties.
A paid off PPOR is a great base for investing.
I used it to borrow for 3 PIs and 2 small commercial properties, all inside 4 years.
KY
Yes, well I was wrong so had to criticism myself.
Well, I must now criticise my grammar!
Tomorrows headline in SMH: Sydney Lawyer Sues Self for Accounting Advice
Hiya
A spousal sale may work for you, since I believe in Vic there is no stamp duty payable.
A 105 % of value of property to a unit trust may also be worthwhile, BUT there is no easy or cheap fix.
The spousal sale option may work well for you
Any good broker can run through that option with
Thanks for all the replies. I really appreciate the effort of all you guys.
The spousal sale option sounds good but me and my wife both own the current property so it seems I should structure the loans as below:
Loan 1 - 50% of 330K (as my wife owns 50% of the property) - IO with offset account = $165K
Loan 2 - 80% of 550K - IO with offset account = $440K
This way I am the sole borrower of loan 1 and my wife gets the cash to pay the deposit and stamp duty for the new property.
As a result, the interests from Loan 1 will be tax deductible. Please correct me if I am wrong.
In addition, can you recommend an accountant, a broker and a solicitor in Melbourne who have experiences to handle spousal sales like ours? It seems I need a team now.
Again, thanks for any help you can give.
Cheers,
Kai
Hi Kai, you need to look at the numbers to see if they are worth all the hassle.
You can get your 50% = $165K + costs tax deductible by buying from your spouse. So then the property becomes an investment. The rent will go towards your income.
At 50% LVR, there'll be very negligible -ve gearing so tax deductible or not is moot.
Rent = $350 pw = $18200 p.a. less $4500 costs = $13700
Interest = $10320
Where is the tax advantage?
I really don't understand why you find it so hard to get the point.
KY
Hi folks,
am a nerbie here and still doing lots of reading. anyone mind to explain why paying cash for the first owner occupied property is a costly mistake?
thanks