Hello from Sydney - looking for some ideas

Hi from Sydney.

I've been having a bit of a read of some of the forum over the last few months and have really enjoyed the general level of knowledge. Feels like I've got a way to go to improve my plans and understanding of property investing.

As I'm in the ADF, I would be interested in hearing from anybody who has much experience dealing with the rules around DHOAS, DHA rent allowance and maybe bypassing the own home situation in location via use of a trust (if possible/legal). Not exactly sure how this would be set up but keen to explore. Currently looking at selling two IPs and buying a PPOR but the sugar hit from the RA will be hard to give up.

 

Once you start looking at it long term the sugar rush from RA pales into insignificance. Member contributions will always increase, PPOR loan will decrease over time if structured correctly. PPOR CGT exemption over 20 years makes the approx $264000 member contribution over the same period seem crazy. DHOAS is great if you want to debt recycle to ownership, very effective.

A more complicated way but effective if you can set it up:

I have worked with a member whose partner worked for the ATO. They were in a location for an extended period (almost no chance of posting elsewhere). While he was serving he had a parent purchase the property and he rented from them receiving full RA. All repairs were tax deductible along with depreciation. All money was funneled back to pay off the loan. When he discharged he sold up and bought his own house. Same strategy the Poli's use for there Canberra properties.

In regards to owning an IP in a location your posting to, it might work in a trust. Gets complicated and may not be worth your time.