Line of Credit and Tax Consequences

I'm starting to look into this loan option known as the Line of Credit (LoC).

So far I found these websites
http://www.pwafinancial.com.au/index.php/resources/latest-news/122-deductible-interest.html

 

It gives a clear warning about using a LoC, originally for a property investment, then later use part of it for other investments. The tricky part is that any repayment may actually reduce the tax deductibility of the interest payments. Examples are given in the article.

http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20002/NAT/ATO/00001

This is the official Australian tax ruling of how LoC are to be treated and implications for deductibility of interest on the loan.

More to come.....

Online Tools - Property

This article lists various websites and tools relating to property investments.


General Resources
Your Investment Property Magazine
      http://www.yourinvestmentpropertymag.com.au/

First Home Owners
Find out what kind of assistance or free money you can get if you are a first home buyer.
www.firsthomesaver.com.au
www.homesaver.treasury.gov.au

Mortgage
statecustodians.com.au
This site provides
i) online instant approval
ii) suburb growth rate information
iii) various calculators
iv) ebooks, videos, etc

Valuation
To find an estimate for the values of property, see:
Onthehouse com au
ozhomevalue com au
homeguru com au
commbank property guide iphone app

Building own home
www.housinglocal.com.au
- information from Housing Industry Association about design and building your own home. Things to consider include: Light, Space, Function, Traffic Patterns, Open Plan spaces, Storage

Sell Your Own Home
Buymyplace.com.au
Hello.com.au
Propertynow.com.Au

Finding agents 
Agentscompare.com.au