It'll be interesting to see what the banks do. It wouldn't look good to rise rates by more than 25bps after some of the big 4 have posted increased profits. Then again, it hasn't stopped them before…

House prices extend rally in to 2010.http://www.theage.com.au/business/property/home-prices-extend-their-runup-20100226-p6ye.html?autostart=1

Hi Mark,I don't know how reliable that website is, as it seems to be promoting Roy McDonald, and linking to Roy McDonald's websites. Read this thread, especially down the bottom.

cashwalton wrote:
I have been told that if I knock down our old cottage and build two new strata free standing homes I can live in 1st one (have mail directed etc) rent out the 2nd one for 3 months. Then decide to move to the 2nd one  – send letter saying have moved due to noise, privacy etc etc to tax office, move to 2nd one then sell 1st an…[Read more]

Talismans wrote:
Hi, I have a similiar situation as well. I'm currently living in my PPOR but planning to move back with my parents in a couple of months. I was just thinking of renting my current PPOR out and at the same time, declaring it as my main residence for up to another 6 years, as long as I don't declare a PPOR else where. Is this…[Read more]

SHales wrote:
Ahh, thank you Dan, so there is the distinction.  So long as you don't BUY a PPOR.So, for us.  In 2002, we rented out our PPOR after living in it for 2 years.  We moved into employer provided accom for about 4 years, then we bought another house as a new PPOR.  Our CGT starting point for the first house is 2006 – is that right…[Read more]

SHales wrote:
you only pay CGT when you sell.  Never sell, never pay.  Only pay income tax on rental income (unless you run a loss)Someone more knowledgeable might be able to confirm this.

Thats right, Capital Gains Tax is a cost of selling. You don't pay any CGT until you sell. So if you hold the properties forever, then you never pay CGT. (Y…[Read more]

That is an interesting one. The general principle is that the funds are in a separate account, which doesn't change the loan amount and the purpose of the borrowing. When funds are withdrawn from the offset, the only change is that interest is now calculated on a higher amount, due to less funds in the offset. The ATO would probably argue that the…[Read more]

My prediction? I'm not predicting huge growth, and I don't know what will happen. I'm not someone who thinks property doubles every 7-10 years automatically, and realise that prices go both up and down.But I do think that a 20% across the board fall is very unlikely to happen, because ot the very reasons you mention. Govt intervention foiled your…[Read more]

Thanks Richard.

Just to clarify:If fWord has a house worth $470,000, and a loan of $360,000, can he borrow 90% of the equity or 90% of the total LVR?If he borrowed $99,000, he would have loans of $459,000 and val of $470,000; LVR of 97.7%. Is this correct?

PeppersGhost wrote:
I buy a property on Jul 1st 2010 I move in July 2nd, 2010 I live in it for 6 months, then move out on Jan 3rd, 2011. I sell the property on June 30th, 2016. I haven't lived in it as a PPOR since Jan 2011. The property has increased in value. Is it true to say there is no CGT to pay? Cheers

You don't have to live in it for 6…[Read more]

Question 1 – No, the interest will no longer be deductible. (Assuming the boat is used for private use). Basically, you will have paid out the IP LOC, and borrowed for a new private asset. Why not just put the funds into an offset account against the 80% IO loan, until you decide what to do?

WJ Hooker wrote:
August 12 2009Yes,        I admit I am a follower of Steve Keen, eventually Australia will catch up with the rest of the world. Mind you I think that the sharemarket will crash again, so maybe I am too pesimistic a person. I am eager for house prices to crash so I can buy a big pile of them, I predicted a large drop this year,…[Read more]

WJ Hooker wrote:
Dan42 – OK so 10million dollar houses have gone up in value – big deal.Still on track..

WJ, I'm not sure what your agenda is. The article I linked to focuses on the higher end, but also says that the entire market rose by 12% for the 2009 year. Perhaps you could read the link again, a little more slowly this time.

WJ Hooker…[Read more]

Your accountant is correct. Interest deductibility is determined by what the borrowed funds were used for, not the security offered. To but another IP, you could get a line of credit secured against the Melbourne house, to cover  the deposit and fees, then get a new loan for 80% of the second IP. I'm sure the mortgage brokers on this site will…[Read more]

granthomson wrote:
Hi guys,I was wondering if anyone had done this 6 week course on property renovations? I am about to embark on a new life journey doing renovations for profit and in the interest of educating myself intend doing this course.I was just hoping someone had been on it and had and views on how well it worked for them.Thanks

I…[Read more]

My point about leveraging:If you purchase a property for $400,000, after putting in $100,000 to cover deposits, in either super or out of super. Assuming property grows at a steady rate of 6% (I'm not saying it does, it just makes it easier for my rudimentary excel skills).As you can access the equity when purchasing outside of super, you can buy…[Read more]

To clarify my point 2, I got off topic a bit and was comparing property in super against property outside of super. I realise that was not the point of your post, so it wasn't really relevant. I'm not sure where you are getting your costs, but I'd like to know where you can get accounts done AND have the fund audited for $1000. Generally, it…[Read more]

The only problem I have is the line:A properly arranged loan will allow the investment property to be purchased in a property investor trust, while still allowing the individual to claim any negative gearingTo do this, the trust would need to be a Hybrid Trust or a Unit Trust. It is getting harder and harder for Hybrid Trusts to borow, and the ATO…[Read more]