Forum Replies Created
Hi Samson,
Hopefully, Terryw’s links will provide what you need to know.Re Andrew’s comment :-
Property A will be only partially exempt from CGT since it was rented out for 4 years. A property is only fully CGT exempt if it is your PPOR for the whole duration of your ownership.
…. I think Andrew might be presuming it was a renter from day one. Your words aren’t specific, but if it WAS your PPOR (i.e. you lived in it FIRST), and you kept it as your PPOR when you moved interstate , i.e. you didn’t nominate prop B as your new PPOR when you moved into it, then I believe Prop A could remain CGT exempt – even though it was rented. The rule might be that you must move back into it prior to selling to retain exemption – I don’t know – Andrew could be right after all.
As Terry said, get some tax advice.
Benny
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This reply was modified 10 years, 6 months ago by
Benny.
Hi Callie,
Sounds to me like a chat with your Solicitor (or one on here) would pay dividends. As I understand it, Company title means that the whole apartment block is owned as a single entity. Thus, to someone wanting to buy a single apartment, it is a bit like selling/buying one bedroom of someone’s house !!! ?????There are $$ to be made by buying a whole apartment block which is on Company title, then creating strata titles for each and every apartment. Once strata’ed, they can be sold off individually. Hoops to jump through, and costs, but the value of each apartment then leaps accordingly.
Hopefully, one of our resident gurus will drop by and can add more (or correct me if I have anything wrong… *eek* :p) For now though, the word I’d use would be “Caution” !!
Benny
PS I just spotted your other thread – there are some replies in there from others:-
https://www.propertyinvesting.com/topic/4991717-company-title-help-needed/-
This reply was modified 10 years, 6 months ago by Benny.
Hi Ollie,
As Terryw said:-If you want to prepay interest then you have to be charged the interest before 30June of it will fall over next year.
If you were planning on paying a year in advance, this would save you about $800 (based on a $400k loan with a 0.2% Interest saving – I think that is around the norm, yeah?) But, if you were to NOT pay the Interest amount in advance, these funds could instead be sitting in an Offset Account saving you Interest on a monthly basis anyway. How much would be saved?
It would be worth running the numbers (one way vs the other) to see the true outcome of each way. e.g. by having ~$20k offset against a $400k loan, your monthly interest paid would be 5% less than if you had no Offset. And, you are paying in (slightly) inflated $$, while retaining flexibility of your funds too.
Do the sums using YOUR figures though – and do let us know what transpires – I’d be keen to know, especially if one way is “streets ahead” of the other,
Benny
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This reply was modified 10 years, 6 months ago by Benny.
Hi Chris,
… and welcome !! There are a wealth of useful threads that would (collectively) steer you down the right path. One thread I recall that asked particularly re IO loans and “how they work” that could give you some fresh thoughts. And, with the kind of $$ you and your fiance are bringing in, this can be good news. Here’s the thread:-
https://www.propertyinvesting.com/topic/4410595-im-a-bit-confused/Keep in mind too that there can be ways to generate Equity. Things like renovating, changing the “function” of a property, developing, subdividing, etc. Also, keep an eye out for Investor Meetings (regularly advertised on here) and go meet some others who are already into property. You will learn heaps from the presenters, and also from networking with like-minded people.
Enjoy your time here, and do come back with any more questions. Hint – the only silly question is the one you don’t ask !!
Benny
PS Also have a read of this one :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/-
This reply was modified 10 years, 7 months ago by Benny.
Hi all,
Whatever they end up doing, I trust they will take the time to “think things through” before introducing some radical change.The NCCP change introduced a couple of years back was an ill-thought-out change (IMHO). The major thing Govts need to consider is that changes may well be worthwhile to “stop people getting into trouble”, but any restrictive changes suddenly introduced can play havoc with those with skin in the game already. BOTH sides of an issue need to be considered before making wholesale changes. For those “in the game”, perhaps any change should be made non-retrospective, and even to take effect some years into the future – to allow time for those already committed to change direction.
I trust the Libs will be a wee bit more circumspect than Labor have tended to be over time. Tony Abbott’s catch-phrase “First, do no harm” holds a measure of hope here. If he stands by those words, I would think any changes will be of value, even if unwelcome for some.
Benny
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This reply was modified 10 years, 7 months ago by Benny.
Hi Bullion,
Nice opportunities there. :) Re the CGT, I am certainly NOT an expert, and, the more I look at it, the more I think I should “Pass” and have you tell us after speaking to a good adviser (Accountant). But below were a few of my thoughts – see what you think….At first, I thought great – by selling half, your Cap Gain was ~$53k max. (then a 50% discount, then taxed on $26k = stuff all tax to pay). But then, that would then mean ALL of the $185k would be a gain on the second sale, so the CGT ramifications would be huge (and would depend on what you would earn in next FY too).
Or, maybe on the first sale you would apportion HALF the initial cost as the Cost Base, thus giving you a Gain of over $90k on the first sale (then 50% discount, then taxed on $45k = a few $k tax to pay – not too bad).
Are you allowed to CHOOSE which method to use? I don’t know…. But I would certainly like to hear the answer.
For sure, do check all options before making the decision. The numbers will tell you which is the right way to go. Maybe it will make A LOT of sense to build on it as your PPOR… Interested in the outcome,
Benny
Later – I see Terryw was answering you as I was compiling mine. Cool !! Terry is one who really does know – unlike me ….. He picked up on the possibility that the land is owned in joint names (I’d missed that). Thanks Terry :)
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This reply was modified 10 years, 6 months ago by
