OK, thanks for the advice – any recommendations for an accountant we can discuss our situation with – if we need to rent the property etc? Thanks.

yes, thats one of our options I guess…though it would be havily -vely geared…and I dont know enough about this area, hence the accountant recommendation. I was thinking if we did rent it out, would this then classify the unit as an investment property, and if we sold it then the loss would be a capital loss to carry forward? I know this is…[Read more]

Hi, I emailed you some high level details of our situation, for all the others out there…here is is:

Hi,

Thanks for the response. Our situation is this:

Bought unit in N. Randwick off the plan in late 2002, 515k.

Wish to sell this year, probably worth around 480k? A recent valuation put it between 480-515K, so I’m leaning towards the low…[Read more]

Hi, thanks for the advice.

We do have enough to buy another proprty i.e. investment, but as you mentioned, the rent would have to cover the mortgage on this one, as we dont have enough flexibility financially (well, I dont believe so, I havent spoken to an accountant yet).

I would be interested in buying a cheap investment somewhere (not…[Read more]

Hi,

I understand you have to live in the property as your ppor for a minimum 6 months, starting within the first year of purchase, so you could effectively move in after 10 months, stay for 6, then move out again..and be entitled to the stamp duty exemption, and the FHOG.

I know there are many posts on this, so do a search to get more “solid”…[Read more]

Hi, thanks for the advice.

Yes, that person is certainly an unlucky sod (it’s me if you havent guessed).

Ah well, you live and learn! Gor to remain postive.

Would your advice be to try to hold on to the unit, until the market picks up again? I’m thinking of renting the unit out in 6 months (as rents are looking to be quite solid going forward),…[Read more]

Well, must have scared them, registration went through today, on original schedule..stuck with it now! Thanks for the help anyway.

Hi, why dont I put my situation here, I’d appreciate any comments:

To cut the long story short, the vendor originally extended the settlement date on the unit my wife and I are purchasing (off the plan) from June 05 to Sep 05 (86 “rain days”), then 1 week before the settlement date, moved it another month to late October.

The claims were “rain…[Read more]

Thanks for the reply…actually, its our first home, and will be our PPOR, for a while anyway, we may rent or sell after 12 months.

Wondering what the benefit of putting additional money into an IO loan with no offset?

Hi there,

You may be right with the onsell idea, although we will have to pay stamp duty on the purchase if we sell before settlement, we will not receive the stamp duty exemption, and we will have to pay stamp duty on the next purchase, so its a bit of a hit aswell, probably about the same according to our recent valuation (this is my…[Read more]

Hi Terry,

Thanks for the reply, I’ll check on the application fee thing.

Regards,

Anthony

Hi Munjy,

You mention depreciation…I understand capital loss, but where would depreciation come into it for a PPOR – I thought that was only for investment properties (or is that the angle you are looking from)?

Cheers,

Munjy.

We bought the unit off the plan at the height of the boom, its now dropping in value – to be honest I want a clean break from it, I can see it being a burden in the future if it drops in value any more. We are hoping to start a family, and as such need a bigger place. We may consider renting it out I suppose, and do all the -ve gearing…[Read more]

Hi…thanks for the reply…”love” and “live” – I use them interchangeably!

We are actually in sydney..so I guess the outlook is even worse than Newcastle..? It wont be our last purchase, I am hoping to sell the unit after e.g. 12 months, take the hit of a loss and lay off the market for a while and see where it is going – I’m not concerned…[Read more]

Thanks Woodsman, good advice.

Are the valuations provided by good valuers a true reflection of the market? I mean, I will probably make a big decision based on their assessment, so I have to know I am obtaining accurate info. I know the market can fluctuate up and down..but I need figure I can rely on.

I’ll contact depreciator…see if he/she…[Read more]

Thanks for the advice everyone…I also have considered the fact that the banks may value the property at less than we have paid for it..and that would force us into walking away…maybe that would be a good thing. One Q, would that count as a capital loss, that we could offset against future gains? I will be looking for a good property valuer…[Read more]

So I’m basically trying to best manage my ball and chain, by finding out everything I can about legal/financial issues. Not that I’m blowing off, but my wife and I have spent the last 2 years saving up for a deposit, and now there is a real possibility we may lose it all.

Derek,

Thanks for the comment, but that is something I have been aware of for the past 18 months, unfortunately I cannot do anything now but buy the unit, or forfeit the 10% deposit. I am stuck between a rock and a hard place and do not really have a choice.

Yes please…could you send me an email with the details? mustbedoc2005@yahoo.co.uk

Thanks for the help.

Property is in N. Randwick, Sydney, near centennial park…we are planning to live in the unit for a while, then rent…to enable us to get the FHB stamp duty exemption/grant.