g0biin wrote:
Worst idea ever unless you can pay the money back in 55 days before the interest kicks in.Never spend a cent on a liability if you can help it.I borrowed put $6gs on my credit card to buy a car only because I knew I could pay it off in the 55days. I needed the vehical to generate income. And $6G was was $4G more than I wanted to…[Read more]

Thanks for posting Winston, The 'Housing Commitments v IR' is really interesting. Goes to show that it prices could be severely affected without huge rate rises. Next year should be very interesting, especially if rates rise as predicted.Also, the relistings graph backs up what we've been seeing locally. The Adelaide market has about 40% more…[Read more]

casanovawa wrote:
Dan42, paying it off inside 12 months would be pretty tough, not impossible, but tough….  if for any reason i couldn't balance transfer to another low rate cc for another 12 months when the deal came towards its end i would probably try and take a personal loan out for the rest of the time…  even then, the interest saved pa…[Read more]

Most of the 'low rate for balance transfer' type credit cards only offer a discounted interest rate for 12 months at most. After 12 months the rate reverts to the standard rate, which could be 12, 14, even 16% or higher. Can you pay the balance off inside 12 months? I think it sounds ok IF (and it's a big if) you can pay it off befor the interest…[Read more]

Jamie M wrote:

orks wrote:
What the hell kind of financial institution lets you use a line of credit as a deposit? It concerns me that someone who structures their own finances like that is out there arranging loans for people.

Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit…[Read more]

mattnz wrote:
As you can see TKline you are preaching to the unconverted. I am a strategy manager working in a major bank and the more I read, the more concerned I am about house prices in Australia's capital cities. I am a property investor, (currently have 3 IPs) but have been very selective in my purchases. I live in Sydney but would never be…[Read more]

That sounds like a long time. Is the property manager showing people through the property, and they are deciding not to rent it? If so, does the PM have an idea as to why it isn't renting? I'd talk to the property manager first, and see what he / she has to say, as a first step.

When articles start using 'average income' instead of average household income', as this article does, it shows they are willing to bend the truth just to try and prove their point. They lose all credibility. Sure houses are more expensive now when compared to average income. Maybe because more households are now dual income? Didn't think of that,…[Read more]

Distributing to the shareholders of a company is done by way of dividend. If the company has paid tax in previous years, then the shareholders get a franking credit on their dividend. ie – shareholder gets a dividend of $70,000 fully franked. The franking credit os 3/7ths of the dividend, or $30,000 in this case. In your (shareholders) tax return,…[Read more]

Hi D,A company pays tax at a flat rate of 30%, so you would pay the same amount of tax on each sale. BUT, you don't want to get into a position where you sell all the properties in Year 1, pay the tax and then have a loss in Year 2 (because of expenses relating to the sales) because the loss will just sit in the company until you have more income…[Read more]

You'll need to live in the property for 6 months to satisfy the criteria of the FHOG. This will also satisfy your CGT criteria as well, because there is no minimum time to live in the property to qualify as your PPOR in the legislation. (Courts have suggested 3 months)Borrowing to buy a $445,000 house will be dependent on your income, which you…[Read more]

Susannah Bowden wrote:
Sideways to the original question: I have set up a family trust with a company as corporate trustee and now wish to put a positive gear property into the trust. The conveyancer says that a trust cannot be registered as an owner on a title. A trustee is registered on the title. But if the company is the title and Steve…[Read more]

How much is the investment worth? I'm guessing it's worth more than $7000. So if she can't get the FHOG, she has an investment property for the cost of $7000. I'd do that deal every day of the week.  

When you say 'unprofessional', what exactly do you mean?You're pretty much bound by the contract, unless they have breached it in some way.

Is it just me, or do Philip's posts make no sense? And the attack on Harb is out of line. He's just pointing out we have heard all the doom and gloom talk before. Yes, Nixon took the gold standard away from the USD, so what? And no, I don't want to read a book by a guy who has failed at every business he has ever undertaken, other than writing…[Read more]

Basically Deppro and other quantity surveyors assign a cost to various assets in the property, so you can claim a deduction for the depreciation of these items against the rental income.

It usually is more beneficial for newer buildings, as you can claim a 2.5% capital allowance (depreciation) against the building cost over 40 years frome date…[Read more]

Basically Deppro and other quantity surveyors assign a cost to various assets in the property, so you can claim a deduction for the depreciation of these items against the rental income. It usually is more beneficial for newer buildings, as you can claim a 2.5% capital allowance (depreciation) against the building cost over 40 years frome date of…[Read more]

I stand by what I have said previously, that you can not claim a deduction for money invested in a discretionary trust.A managed fund is a unit trust. You borrow to buy units in the managed fund, so the deduction in your own name is for the purchase of the units. If you had a closely held unit trust, then you could claim the deduction.But you are…[Read more]

theplatypus wrote:
Yes but how is the capital gain amount reached? I mean, if I don't get it valued now, then when I sell it in 10 years, won't they calculate it based on its value then rather than the value BEFORE I moved in? Whereas if I get it valued now, then I will know exactly what the capital gain was before I moved in and whatever…[Read more]

I'm sorry to say your accountant is incorrect, there is no need to get it valued. You only need to get a property valued if the property is changind from a PPOR to an investment property. If changing from an investment to a PPOR, the capital gains calculation is based on the % of time the property was producing income.