The thread you refer to is working out how much profit you've made on a property after allowing for the negative cash flow over the years.  This is not part of the CGT calculation.  This example has been done to show you that when you sell a property your "profit" is not just sale price less purchase costs,  but that you should also be taking into consideration the loss made on negatively gearing it over the years.  This negative gearing loss is of course tax deductible in your tax return each year,  but you can't double dip!!

Two things I learn't from doing a subdivision:
1. It takes twice as long than expected
2. It also costs heaps more than first thought.

But if you can struggle through, the profit is pretty damn nice,  and you'll also be surprised that you  probably won't see much of a reduction in the value of the front house.

Best wishes,

Yes thank you TerryW for sharing.

Hi CJ,

We live and have been investing in the Ipswich region for a few years now and have seen our property values and returns increase considerably,  but the market is very "hot" at present with houses selling fast.  You should be able to source a property for around the $200K with a 5% Gross Return but it will probably need a freshen up to be rentable.

South East Qld is experiencing the fastest growth rate of any urban region in Australia.  By 2026 the population is expected to reach 3.7million people, an increase of over 1 million people.  The SE Qld regional plan (http://www.oum.qld.gov.au) published in 2005 sets out to guide the direction of future development.  More than 80% of the region from Noosa to the NSW border and west to Toowoomba will be protected from development.  The SEQ regional plan also identifies a new urban growth corridor for housing and industry.  Ipswich is expected to grow from 140000 to 318000 people by 2026. 

To read about my visit to the opening of the new Orion Springfield :http://www.propertydivas.com.au/6Share/ReadStory.aspx?story=138d9e24-e46e-4cb0-b9ba-3aa5ac4d9d31

Hi Jaffasoft good to see you up and about!

Hi Joel,

Yes you certainly can vary the amount of tax witheld from your salary by your employer, and its called a Income Tax Withholding Variation (ITWV)  The only issue is you're a bit late for this year but 2008 forms should be available off the ATO website by mid May 2007.
As Marc has stated you won't be paying any less tax, rather its just spread over the year instead of getting a big lump sum tax refund.  Be careful and don't overvary as penalties will apply if you receive a debit assessment of $500 or more.

I really think this issue should be discussed with your Accountant.  The following is an extract of a document off our website that explains the difference further:

Trust ownership is probably the most flexible way to own an investment property. The most common Trusts are: Discretionary Trust

A discretionary trust is often referred to as a "Family Trust". It provides flexibility in sharing income within a family and can operate for up to 80 years.

Income is distributed according to the trustees’ discretion, by allowing the income to be distributed to lower tax earners and relatives, including children (conditions apply).

Some advantages are low establishment costs and asset protection, as only the trustees can be sued. Disadvantages include the fact that if there are losses, these will be quarantined within the trust and cannot be distributed to beneficiaries. Therefore a discretionary trust may not be suitable for investors who practice negative gearing – unless the trust receives income from other sources. Also, land tax thresholds are lower than for individuals.

In a unit trust, the trustee holds assets on trust for the unit holders. A unit in a unit trust is like a share in a company, as it reflects your wealth in the unit trust. A trustee can be either a company or an individual. Advantages of unit trusts are that they are cheaper and more flexible than a company setup, non family members can own units, and also the fact that they can borrow money and carry on business. The main disadvantage is that the trustee has no discretion in the distribution of income, as the distribution is determined by the unit entitlement which was agreed when the trust was established.

• This reply was modified 10 years, 8 months ago by  AmandaBS.
• This reply was modified 7 years, 3 months ago by  Forum Moderator.

The joys of slab on ground!!  Give me a lovely Queenslander on stumps any day.

Hi Cherry Pro,

We also have a number of free downloadable spreadsheets and templates on our website that may be of interest to you.

Yes Raddles is correct you will need to declare the rent as income but can also claim any expenses.  No CGT as long as the asset isn't changed in any way. 
Lucky devil!! Not many people still holding a pre CGT asset.