Hello MelThe best way to answer your question for yourself is to do the maths.Firstly find out what you could rent your unit out for. Then you can either work out the outgoings ( council rates, water, house insurance, landlords insurance and expected maintenance costs)  or just use 20% of the rent as an estimate.Rental income – expenses – inte…[Read more]

Hello EmmaHave you been to a bank to try for a normal mortgage loan? I'm sorry for my ignorance but if what gibb01 posted is correct than you may be able to get a bank loan which will be better interest than vendor finance. Of cause you will most probably need your mother to guarantee the loan but you said in your first post that she is willing to…[Read more]

Hello MrleumyI think there are several problems with this idea not the least being that when you transfer the property into the trust you will have to pay stamp duty again, which is an expensive exercise. Some other problems are:-If the property is negatively geared the losses will be trapped in the trust.You lose the advantage of the 6 year rule…[Read more]

If the property was bought in 1981 then it's pre capital gains tax. If it was mine, I wouldn't sell it unless I had a pressing reason.CheersElka

Thank you Terry. I wasn't aware of that. I thought you actually had to have income.Good to knowIf it's easy for you to find the case that would be great.CheersElka

Hello sushiboyI think it's worth your while to go to an accountant to sort this out for you. If you only made $5K profit without taking into account all costs, interest etc. you probably have a very nice capital loss which you need the ATO to know about so that you can use it to wipe out part of a future capital gain.Sorry to disagree Terry but…[Read more]

PTW wrote:
Obviously the only advice/opinion worth taking is from a qualified accountant who is familiar with this area…. which I definitely am not. HoweverIf I was to purchase a property and positive gear it, am I correct in believing that tax would only be need to be paid on the rent I get & that it would be at the top marginal rate, as my…[Read more]

I love it when the figures used to support huge house price falls are all for properties in the $ 2 / 3 / 4 M bracket. Even in the suburbs mentioned there are properties for more "normal" people. What has happened to those? 

Using the 6 year rule you are allowed to rent out your PPOR for up to 6 years without affecting it's CGT free status. So, if you sell after renting it out for 2/3 years and have no other property that you want to treat as your PPOR you should have no CGT to pay.  CheersElka  

Hello hsingh10This may be a useful place to start reading about deductible expenses for an IP. It's the ATO site.http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/002/010/005Hope this helpsElka

Hello 93561Have I understood you correctly. During the approximately 84 days you have been able to occupy the unit ( 42 days to settlement and 3 x 14 days extensions ) you will have been able to live rent free and loan interest free for 39 days ( thanks to your good negotiation of the terms of the last extension naturally ) and you're not happy…[Read more]

Totally agree with Terry on both points.My opinion is that 100% offset accounts are the best thing since sliced bread, if one is financially disciplined. In your position I would even make the new loan for your 1 bedroom apartment IO with a 100% offset account and deposit all your income into this. That way you get maximum interest savings and…[Read more]

Hello dotohActually your situation is pretty much the same as that described by KIZ in the post above except your numbers are different.BTW the two items you described as maintenance are in fact not fully tax deductible as repairs. They are both capital expenses and you will only be able to depreciate them while the place is a rental. Also when…[Read more]

Your parents can just leave you the property in their will; first to each other and then to you. You need to get some professional advice on this if you or your parents have a reason why this is not suitable.If it's because you want to be able to get some equity out of the house for investing, this may be possible even if they are the owners but…[Read more]

Hello DanielHave you and your parents discussed this with an accountant versed in estate planning to make sure this is a good idea?To my thinking, if your parents gift you the house while alive you will have to pay at least stamp duty on the transfer which won't happen if you inherit. It depends on the state you are in but this could be +/-…[Read more]

Hello theplatypusThat's a hard question to answer with the information given. We have no idea of your income; what price range you are thinking of buying a PPOR; is your IP negitively geared and by how much per month (i.e. how much it costs you out of pocket per month ); how much equity do you have in your IP; has the area that you are thinking o…[Read more]

skuz wrote:
Gold or even silver on the other hand is straight forward. You just have to weight it and you know the value.

Hello skuzI wouldn't be too sure of that.  True story. Without going into great details the basic facts are that my girl friends husband thought he was being careful ( and clever ) when he accepted about 30,000 euros in g…[Read more]

Hello PlantI believe that if you deposit the $30K into your investment loan and then redraw it for personal use ( own home improvements) you will lose the ability to deduct the interest on that $30K on your tax. Not a good idea. An offset account is the answer, as has already been suggested, but if your loan does not support this facility then…[Read more]

Hello neilvsYou seem to forget that not all the rent is availible to service a mortgage. Generally 20% is already earmarked for expenses, excluding interest payments.Council rates, water rates, insurance, repairs, agents commission/letting expenses, vacancy periods and possibly land tax also neeed to be paid. I guess the banks realise this.CheersElka

Hello 93561Sounds very frustrating!!!. Which state are you in?I saw in your 1st post that you listed land tax. Why would you need to pay land tax?. As you intend to live in the house you are not liable for land tax. If this was an investment property for the vendor, the land tax is his problem ……..  unless you agreed to pay it in the sales c…[Read more]