No. Sorry yixinyue. I have just tried doing some searches on the ATO site but couldn't find what you asked for. Just in case, here is the link to the ATO site. Maybe you will know how to do it better or maybe someone else will be able to help you.http://www.ato.gov.au/ Unfortunately the answer I gave you is correct. If you search this forum you…[Read more]

Hello yixinyueThe problem is that the interest on the loan you take out against your current residence and use to finance your new residence will not be tax deductible. The ATO looks at what you used the funds for and not where they came from. In this case the funds will be used for a private purpose.If you use the funds to buy another investment…[Read more]

Hello camakosMy thoughts are that energy efficient homes (in fact all buildings) are a must for the future but that we will be led towards this end in slow stages ( to avoid the kicking and screaming) because of the extra costs on top of the already high price of housing. Have you done any costing to see what the difference in price is between a n…[Read more]

Hello BaspetI hesitated to answer you in case I got the same treatment as GoldCoastGirl who, from my reading of her post, answered you in good faith and in the spirit of being helpful. However, thinking that you may just have had a bad day today I have decided to venture where angels fear to tread. I think the best way to set a rental is simply to…[Read more]

Hello blogsActually it's not such a complicated situation. If the two brothers own the apartment  50/50 and both names are on the title and they pay the loan 50/50 then Jons' solution above is spot on. The brother who is going to live in it will have to pay half the going market rent to his brother as rent for his half of the apartment. The re…[Read more]

Thank you all.M that is exactly what I am doing now. Using a professional tiler who is going to use the technique you mentioned. $400 for the floor and on the wall above the sink.Elka

Hello woodyvaleI think you certainly have enough equity in your PPOR to cover you for a 12 month period, specially as you seem to be financially prudent and your wife brings in some income. It may be a good idea to get a LOC asap over your PPOR now while you are employed as later it will be much harder. Seeing as you will want to use it for both…[Read more]

Hello IanHave you considered also knocking on the neighbours door to verify that they have moved the kitchen and to ask what if any problems they encountered and how the plumbing was done in their case.?  Just a thought.Elka

Hello pasandbecI have been reading the ATO site lately and it seems that the method I outlined above for calculating CG is true if you started renting out your PPOR before 21 August 1996.  If you started renting out your PPOR after 20 August 1996 it seems another rule applies. Here is the link to the ATO site. The first example may be what you ar…[Read more]

Hello seanmigI have been reading the ATO site lately and it seems that the method I outlined above for calculating CG is true if you started renting out your PPOR before 21 August 1996. If you started renting out your PPOR after 20 August 1996 it seems another rule applies. Here is the link to the ATO site. The first example seems to be what yo…[Read more]

Great. Thank you Bren. Just what I need.

Hello dwong8There is more to a trust then just asset protection. For example flexibility of income distribution which you may not use today, but will give you options in the future.There is a lot of information on this forum over trusts. Why don't you do a search ( top right of screen) for this subject and have a read.CheersElka 

Hello JonI have never seen such an auction in Australia. Sounds even more fascinating  and certainly not a process I would enjoy being involved in. Sounds too cutthroat for me. You only get one chance in both the Amsterdam auction and the reverse auction.I mean a house is not a packet of gum. It does not have a finite price but a range and I am…[Read more]

Hello DavidGreat. Thank you. Seems to be working well.CheersElka

Thank you both. Elka

DraconisV wrote:
Ok. I buy a prop for 200K, with 2.5K selling costs and the FHOG, so I actually fork out 195K. I don't think the size of my deposit matters here(but we'll just say 40K, or about 20%). I think you mean buying cost here?. B.T.W 2.5K is much too low. Don't forget the dreaded stamp duty. Buying costs are about 6% of the purchase…[Read more]

Hello DraconisVYou are certainly determined to understand all this before you get to the stage of buying aren't you. Good on you.Basically your example is:-1. Buy PPOR                (and live in it long enough to establish it as your PPOR)2. Move out and use it as IP while renting or living with parents (i.e. not buying another PPOR)3. Sell…[Read more]

Hello Show me the money.Do you know a lender who allows a 100% offset account with a 3 year fixed loan?. If so, I am interested to know which one.ThanksElka 

Thank you both for your responses. I have emailed my builder as per your suggestion crashy and will see what he thinks.Cheers Elka

Hello pasandbecAll selling costs, including the ones you mentioned, are deducted from the sale price for CG calculation.If you lived in the property as your PPOR for the first year and then rented it out for 4 years then the calculation of taxable CG would look  something like this:-     CG (over the 5 years) X 4/5        except that the ATO calc…[Read more]