Hello folino54In the next few years ( until 2012?? ) at your age you are able to make a tax deductible contribution of up to $100K each to super. This means that you can wipe out most/all of any CGT you would need to pay on the sale of any of these IP's.Putting these funds into super (maybe SMSF ?) will earn you income which attracts a very nice…[Read more]

Hello Joseph12Yes you can but there will be CGT ramifications when you sell. You have to work out whether it's worth it in the long run.http://www.ato.gov.au/individuals/content.asp?doc=/content/36910.htm&pc=001/002/026/017/005&mnu=5060&mfp=001&st=&cy=1Hope this helpsElka

Hello kjun01In your position, specially if you qualify for the FHOG ( which is a nice 14K this year) , I would buy a property which I would first live in and then rent out after 6/12 months (depending on the state you live in). So even though you will be living in it initially buy it with the criteria you would use to buy an investment property.…[Read more]

Hello DraconisVMy understanding is that if you first rent out your place and then make it your PPOR, when you rent it out again you will not be able to use the 6 year rule re CGT. Please check this with a good accountant but if I'm right it would be better for you to live in the unit for the first 6 months ( 12 months in some states ? ) and th…[Read more]

Hello RichardYou must have a crystal ball somewhere.I don't know which thread it was on but I remember reading that you predicted that the banks will do away with the rates discount for larger loans on the pro packages.Just got advised that ANZ will not be offering the 0.7% discount for new lo doc loans with the pro package.I guess that's just…[Read more]

Hello dublin_101In your calculations I think you may have forgotten to use the 50% discount to CGT because you've held the property for longer than 12 months. CheersElka      

I wondered whether the situation had changed in the OZ tax world. Many  years ago I accepted a 2 year contract to work overseas and while I thought I would come back after that time more contracts followed , life happened and I haven't been an Oz resident  since.  When I left Australia I organised my affairs so that I would be a non resident for…[Read more]

Hello eddiecI tried to find the sections you mentioned on the ATO site but got totally lost. Because of this I don't know if the situation changes for jc1979 if he is deemed to be a non resident for tax purposes. Does he still have to declare the income he earns in his country of residence (UK)  to offset against his Australian losses?Just out of…[Read more]

I take my hat off to you kev008. Working 2 jobs and renovating while living in the place with 2 very young children shows motivation and drive.I don't know what suburb you're in but a $10 pw difference between an old unit and a renovated one with a gardener included seems too small a difference to me. You may like to get a couple of agents in for…[Read more]

Hello jpn251177As Terry said, this is a complex area because it is not only dependent on Australian tax law but also on the tax law of the country you will be living in and whether the two countries have a double tax agreement. Being England I would be very surprised if there wasn't such an agreement.  However, Terrys' answer as to what your o…[Read more]

I don't know how old your unit is and in what condition but since it's about to become your 1st IP you need to start seeing it as such.Do you know what you can rent it out for?Is there anything that you can do to it that is not expensive that will increase the rent?Unless it's very old it may be worth your while to get a depreciation schedule done…[Read more]

Hello kev008Understand your frustration but sometimes the best but hardest thing to do is wait. As far as buying your first IP, in my opinion, this is just such a time. In the mean time keep saving and researching. I notice from one of your other posts that you are in Melbourne. There is a networking group you may wish to join who meet ones a mo…[Read more]

Hello ankitjain  You can of cause leave Australia intending to return one day ( 2 – 5 years? ) . If you never come back to live, well… life is full of surprises.   http://law.ato.gov.au/atolaw/view.htm?docid=ITR/IT2650/NAT/ATO/00001   One question you will want to ask an accountant is can you be a non resident for tax purposes but still reta…[Read more]

More reading for you.  http://www.ato.gov.au/taxprofessionals/content.asp?doc=/Content/64045.htm 

Hello ankitjainYour current tax agent is not adequate for your needs. You need to go to an international accountant for advice before you do anything else. Someone like KPMG  or maybe someone who you know also has offices in India. Leaving Australia with no intention of returning can trigger a CG event which would be a pity as you will then miss…[Read more]

Have you got a picture of the front you wouldn't mind posting? I confess I don't know what a 1930's chamferboard cottage looks like.CheersElka 

Hello PirateWhat you describe is not "wrong". It just doesn't give you the most interest savings.In fact if you know that you are not financially disiplined (i.e. if you know that the only way you will not overspend on lifestyle each month is if you first allocate that portion) then your method is better for you.There is nothing wrong with the…[Read more]

Hello Reno QueenWhat a difference a floor makes.          Looks great.Did you stain the floor boards in the verandah ?

Hello PirateWhile it's a nice exercise to see what the minimum amount is that needs to be deposited into an offset account to be able to pay out the loan after 30 years, I assume that you realise that this is not the best use of an offset account.The beauty with an offset account is that while it can save you masses of interest it doesn't actually…[Read more]

Hello KylaAfter 2 years, when your fixed loan period expires you would naturally organise an offset account for the loan and move the $10,000 into there.Actually if you sit down and work it out you'll see that it will only cost you an extra $200 – $300 in total over the 2 years that the money is in a high interest account instead of reducing th…[Read more]