Forum Replies Created
Mel
I’m in the ACT, so if I buy an IP which then becomes PPOR after 6 months, you are saying the entire SD is tax-deductible even though we only rent the place out briefly (then live in as PPOR for many years?
dreamergirl
“seems strange though that with the economy running better than it ever has that we are about to embark on a gamble with an unkown factor”
The economy might be running well, but have you not noticed everything else is up the sh*t?
Libs save money, sell of assets, reduce debt etc. Then we (the voters) get sick of the fact that everything costs and it swings back the other way to labor who spend on welfare and health/education etc. After a while, it goes back again.
I do work for the government and I am in Canberra. Yes, there are people that are time wasters and there are those that are over worked as well. But I’ve worked in private sector and seen the same things.
Personally I’d love to see a change of government just to see what happens…
Thanks Simon, though I’m not thrilled with the situation! LOL
What if we redrew and used that money for other things (ie pay off cc and finalise payments on renovations) and then just kept saving seperately (as an increased rate given we will be using redraw for these purposes).
Sam
Thanks for the replies. Looks like the simple answer is just to go with what we currently have as the loan on the IP (once it becomes the IP).
I just need to find a property-investing accountant to help me work the best of the situation (whch given the value of our current PPOR has almost doubled in two years, is still a bloody good thing!)
Thanks
Costello agrees with you…
http://www.news.com.au/common/story_page/0,4057,8704219%255E28793,00.html
Hi Akyboy
A great person to comment on this would be Bill (BillfromOz). But personally, I’d say that prices are over inflated here. I don’t necessarily see them falling but then again I (now) know they have before.
If you want +ve cf then Canberra is not the place to buy. Best I’ve seen wouldn’t break even for several years. But I’m only a rookie, so perhaps I’m missing something.
SamBill
This is all very interesting and of the moment – being in Canberra myself I just noticed on the weekend that there were a fair few withdrawn properties in the paper and also that quite a few have been advertised for a few weeks in a row. Even two months ago, there were barely any lasting longer than 2 weeks.
I’ll now add your criteria to my market watch. Thanks for the insight.
Sam (hoping to snap up a +ve cf IP in the next 12 months)
Not sure what you mean by short and skinny? I’m only a newbie myself but in terms of definition, I think this is the basic scenario:
1)Your cashflow is positive in that the rent is greater than mortgage + running costs, but when it comes to tax you make a ‘paper loss’ because the amount you claim due to interest payments, depreciation etc negates your cashflow (so you get a tax deduction even though you are making money). Rolf de Roos talks about this I think.
2)As above your cashflow is positive but even once other costs are taken into account, your cashflow is still greater than your overall paper loss. Thus you’re positive gearing.Personally I’ve love number one right about now seeing I’m about to hit the really yucky tax bracket…
Have I got it right everyone else?
SamI’d be in it
SamP.S. Friends bought at Florey 18 months ago, you’re right in not wanting to know what it would be worth now. Tres hot suburb…
Thanks both of you for answering.
Pulpo’s, I don’t like to think of myself as trying to do a ‘tax dodge’, avoid rather than evade perhaps!
And it is set up the way you describe, a permanent structure in a NSW caravan park. With expensive site fees. I’ll have to have a chat to the office and see if they can perhaps rent it out. Then off to find a decent accountant.
Thanks again.
