The fees incurred in the payout of old loans will be tax deductible.The fees for new loans will be deductible over a full five year period, rather than all deductible in the one year.

The morgage broker gurus will be able to explain this better, but the equity you have in your PPOR would not be enough to use as a deposit. Most banks will now only lend to 90%, some lend to 95%, so that only leaves a maximum of 4% from your PPOR to use as a deposit, including stamp duty and mortgage insurance. This is assuming you have no other savings?

crj wrote:
The simplest way (for them) to minimise CGT is for them to be living in the 1988 house as their PPOR when they die, then the children have 2 years to sell it without incurring any CGT.Your solution needs expert advice

How does that help if they want to subdivide and sell townhouses for profit?

An accountant or solicitor can set up a trust for you, costs range from $350 to $1000 depending on how much advice is required and how complicated the setup is. Ongoing costs for a trust with individual trustees can be $200 – $500, dependent on how much work is involved.If your current borrowing is 91%, where are you going to get the deposit from?…[Read more]

You could pay to get a depreciation report, but as it was built in 1984, depreciatiopn on the building would almost be finished. If any major appliances were replaced (air conditioner, oven, dishwasher etc) you could look at claiming depreciation for these, depending on when they were replaced. The ATO release guidlines as to what can and can't be…[Read more]

I'll answer the last one first – no. There would be some CGT on the rental, even if they moved in.If the contract for the pre-85 house was for $700,000, then that should be ok as it will be free of CGT.The issue i see is that they will still have the title for the rental, and will have to pay some CGT or income tax (depending on intent) on the…[Read more]

One other thing to consider is a clause in the contract to allow you to inspect the property prior to settlement, and void the contract if it has been damaged etc. A lot can happen in 6 months.

I would say this presents you, as a first time buyer, with a nice opportunity. Firstly, prices may rise in the 6 months from contract date to settlement date, so you have some capital gains made before you have settled.

Interest rate movements would be an issue whether you have settled or not. What you could do, is put some money away in the 6…[Read more]

I would say this presents you, as a first time buyer, with a nice opportunity. Firstly, prices may rise in the 6 months from contract date to settlement date, so you have some capital gains made before you have settled. Interest rate movements would be an issue whether you have settled or not. What you could do, is put some money away in the 6…[Read more]

realestateedu.com.au wrote:
Don't forget their money is our tax money.Labor spends and Liberals save, hence the name be liberal.Every promise Gillard makes will send us further into debt, when they took over we were in surplus now we are in debt.

That's rubbish. The two parties are pretty much similar in their spending promises. Both have…[Read more]

Just to clarify, Duckster is correct. CGT is calculated from contract date.

Terry's right, shop around for a new accountant. From your infoprmation provided, you should be able ot use the six year rule for CGT exemption.Incidentally, you would be amazed as to how many accountants don't know this rule. We had a discussion in a previous workplace, and three quarters of qualified accountants didn't know the rule.

Thats right. You can only claim one PPOR as your main residence at any one time.

sassy75 wrote:
thanks.  Yes i meet the criteria.  I lived in it for 6 months whilst I renovated it when I first bought it in Nov 2005.  It is in Melbourne.

Hi Sassy, Just thought I'd check re: 6 year rule, as a lot of people get this wrong. But it looks as though you can sell CGT free. What you may wish to look at is if selling and buying so…[Read more]

There is a fair bit of this type af analysis around at the moment. But a couple of things I take issue with. Firstly, I couldn't care less what the multiple of gross income to house price is, or what some pointy head from the US has to say about how expensive our prices are compared to theirs. It is irrelevant. Secondly, none of the economists or…[Read more]

Transferring an investment property will most liklely trigger stamp duty, depending on which state the oroperty is in. For the 6 year rule, you have to have lived in the property before renting it out, and not be claiming another main residence. Do you meet those criteria?

I've read 'Rich Dad Poor Dad' and took a bit out of it. I liked his earlier work, but his latest stuff, in my opinion, borders on hysteria and scare mongering. As a general rule, anything with 'conspiracy' in the title should be avoided.

number 8 wrote:
Hi Matt,My best guess is that they won't lift it above the reserve (all things being equal), they have clearly enough margin from the last above reserve rate rises (to think we were all feeling sorry for them facing higher costs). I dropped off my lunch on several occasions to the executive as I thought they were having trouble…[Read more]

eloi wrote:
LOOOOL i can tell u work for a major bank. We all know that the only reason most of those non bank lenders stuffed up was because of the GFC. If ur talking about exit fees then just look at the major 4, if u want to see higher rates just look at the major 4. All u have to do is have a look at resi, Mortgage house and a few more to…[Read more]

Karl, If it's depreciation relating to the investment property, then it is an expense to be recorded against the income of the rental property. It sounds like your accountant has put it in the right area. I assume your accountant has a three year university degree, then if he / she is a CA or CPA, they have done further training, as well as…[Read more]