Hello zizzuuDo I understand your post correctly. You have a fixed IO loan for 3 years with a 100% offset account and at a good rate?Can you tell me who with please? Thank youElka

Hello DaveWhen I see a house being built this is my favourit part. It goes so fast that it always looks as if it will be all ready in a couple of weeks. Looking good. Thanks for the photos.Elka

Yes, I agree too. Pay off the $20K as the interest is high and not tax deductible and then both continue to save in the offset account until you have the deposit you need.Then, when you find an IP you want to buy do not use the  money you have saved as a deposit but instead use it to pay down your PPOR loan (non tax deductible debt). Then, by m…[Read more]

Hello JThe rule is  … up to 6 years. Before this time you can even move in again for a few months and start the 6 year rule again.  This all assumes that you haven't bought another PPOR in the mean time. If that's the case then up to 6 years you are CGT free. Here is a link to a good explination by Terry if you have bought another home in the m…[Read more]

Gee I thought I answered that. Building and content, public liability and I recommend landlords insurance though it's not compulsory. Actually if you don't have a mortgage none of it is compulsory but it would be a foolish person who didn't insure their property against a disaster or themselves against public liability.You should organise the…[Read more]

Hello FloydYou didn't say whether you were buying a property to live in or to rent out.Either way you need building and content insurance and public liability. If you are renting it out you should also take out landlords insurance. CGU does have a policy that covers all the above in one policy but it's also possible to get them separately so sh…[Read more]

Hello DaveThis may be a stupid question, but did the slabs need all this time to dry? Is that the reason that the frames have only just arrived?  CheersElka 

http://www.invested.com.au/2/advice-best-direction-here-16862/This is the thread I meant which I found explained debt recycling clearly (for me). Obviously you don't need to buy shares to use this strategy. You just need to use the funds for investing.

Hello MichaelAs I said I am no expert and only have a bit of experience with an industrial CIP. You didn't say what sort of commercial property it is. I believe different types of commercial properties have different lease conditions normally. What I would do before I bought anything is take the lease to my solicitor who is experienced in this…[Read more]

Here are links to 2 sites for more information. The first is a thread on Somersoft to discuss CIP'shttp://www.somersoft.com/forums/showthread.php?t=29333This second one is to a site which also sells commercial property as well as acts as buyers agents but has some good information there. Also if you join (free) they will send you some more…[Read more]

Hello MichaelI am no expert in this area but since no one has answered you I will tell you the little I know. I have 1 commercial property and the return is better than residential. It also has the advantage that normally (check the lease) the tenant pays all outgoings (rates,water,insurance,maybe some repairs, land tax at single holding rate…[Read more]

Hello CarolJust coincidentally I was reading an old copy of API and came across an article about  Binding Financial Agreements. Apparently this is something new from 2000 and unlike a pre- nuptial agreement bids more certainty. It's possible to make such an agreement even after you are in a relationship. Maybe you should speak to a lawyer sp…[Read more]

Hello ChrisACTYou are in a fabulous position as not only are you young, earning a great income between you but have also started on your wealth building and based on the information you have provided, doing well. In your position I would certainly not be worried at all.As others have already said, the first priority now should be to eliminate your…[Read more]

Hello MarkRather than repeat it here is a link to a similar thread which is worth your reading. https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4322421Even though the time element is different I believe that for up to 6 years from the time you started renting out your old PPOR, the principle is the same but naturally c…[Read more]

Hello BezThere is nothing magical about rental income. It's just added to your other income and all deductions are subtracted.Since you're losing $4000 on the property you will be saving yourself tax on this amount, at your top bracket, from your other income.Hope this helpsElka

Hello CatherineThere is one solution that some investors on the forum use to solve that problem but it's very much dependent on your personal circumstances and feelings.If you move out of your PPOR and rent it out for a while then not only the interest becomes deductible but all other expenses as well. Depending on the age of the property you may…[Read more]

I'm sorry but I don't see the point in this. If you refinance your IP's to pay off your PPOR then this extra lending is not tax deductible as it will be used for private and not investment purposes. At least that is what I understood you were suggesting Contrarian. Sorry if I misunderstood.If you have the equity then you might like to refinance…[Read more]

Also remember that companies don't get the 50% CGT reduction if you keep a property for longer than 12 months.

Hello FlashI believe you would only be up for CGT for the difference in price for the last 6 months. I also think that you can still decide to treat your old PPOR as your current PPOR and not pay any CGT at this point. Naturally this will mean that you will be up for CGT on the increase in value in the first 6 months of your new PPOR when/if you…[Read more]

I must be misunderstanding the rules of paying CGT on an inherited property when you sell it.If your share of an inheritance was a property that had been used as an IP don't you need to pay CGT when you sell it?I thought that the capital gain was, simply put, the differance between what the person you inherited it from paid and what you sold it…[Read more]