Hello Adrian and AmberThank you for that very helpful information. I now have a starting point.CheersElka

That seemed so strange that I just had to have a look myself. The link below is to the ATO site.http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htmIf you look at the second example where the house was rented out for more than 6 years then CGT is payable on only the time that is over 6 years. Total time of house…[Read more]

Hello drec0007Make sure you have good insurance ( house & contents, public liability & landlords )Enjoy the new job Elka

Hello

elkam wrote:
A redraw facility is the ability to re borrow any extra repayments you've made off your loan but you can think of each withdraw as a new little loan which has to pass the "purpose test". If you use a re draw for personal expenses, then even if the original loan is ( or becomes)  for investment purposes, then the interest on t…[Read more]

Hello MarlAs imugli said, an offset account is a savings account with your money in it which is used to decrease the amount of interest you pay for the loan that this account is coupled to. You can deposit and withdraw from this account at will for both personal and investment purposes and it has no effect on the loan itself.  A redraw facility i…[Read more]

mackar wrote:
In London where some of the most expensive properties are to be found… but young 1st home buyers, buy a bedsit as their 1st home, then maybe a 2bed unit, then a townhouse & eventually work their way up to the house they want…I feel the quality of life here in Aus is great & I agree we've had it too good for too long… but i…[Read more]

Hello JoyceHere is a link to the ATO site that explains the situation regarding CGT if you rent out a room and declare it.http://www.ato.gov.au/individuals/content.asp?doc=/content/36910.htm&pc=001/002/026/017/005&mnu=5060&mfp=001&st=&cy=1Here is a link to a publication on the ATO site which you can download which explains all about what you can…[Read more]

Hello MarlBanks will usually allow you to top up your loan to 80% of the current valuation so if your unit will be worth $200K and you believe that your loan at the time will be $130K then you should be able to pull out $30K of equity.However, why would you do it this way ?.Instead of paying down your loan by $30K you should deposit the extra…[Read more]

Hello IPThank you for your response.I was hoping to be able to add in brick veneer and then probably render it to update the whole look of the place.Where would one go about looking for the plans used to build these units. Do councils keep these?Would they include details about the slab?Is there any way to have the slab tested?Excuse the stupid…[Read more]

Hello YIPaying only the interest portion would be $525/month.$30,000 X 21/100 = $6300 / 12 = $525This is really expensive credit. Hope this helpsElka

Housing group in CPI …… http://www.abs.gov.au/AUSSTATS/ABS@.NSF/a9ca4374ed453c6bca2570dd007ce0a4/DCE0F008280191E1CA25705F0020D35A?opendocument 

"Please learn your own economics : Housing costs are not in the CPI. End of story, this is an absolute, just look it up before you post nonsense like this."Now I'm confused. http://abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6401.0Explanatory%20Notes1Jun%202008?OpenDocument 

It has been puzzling me as to why Scamp, who currently lives in the Netherlands but is planning to immigrate to Australia soon, has been so passionate …… no, ….  correction…. obsessive …. about persuading us that the market is doomed and about to crash US style. This message has been drummed into forum members relentlessly even in…[Read more]

Hello ColletteNot sure what you mean by "signed the deed with you". Is his name on the title and/or on the mortgage or did he just guarantee your loan? Who paid the deposit and buying costs? Did you draw up any agreement at the time?No one here will be able to give you a definitive answer and you really need to go to a good solicitor with this…[Read more]

Hello Kenzel"LOC seems the common approach however how should I best utilise my offset balance of 10K? Should I dump it into the existing loan of 80K and then apply for LOC against the now 30K (20K + 10K) so I have more tax deductability potential (I've read this is called debt recycling from somewhere…not sure…) or should I leave it and use…[Read more]

Hello KenzelJust a small correction "2 months down the track I decide to turn this into an IP by switching to an IO loan (as from what I understand this signals to the ATO that your intentions for borrowing the money has changed and that it's now an IP – i.e. the balance owing is now fully tax deductable)"The above statement is not correct. The…[Read more]

Hello b0sonYou seriously need to see a good accountant as this could save you a lot of money.My understanding of the possibilities is a little different.The house in Adelaide remained your PPOR until March 06 when you bought a new house in NSW.  Under the 6 year rule it remained CGT free even though it was being used as an IP for a year.From t…[Read more]

I confess to being totally ignorant about Mildura so I'm ready to be laughed at for my stupid question.Surely a solution to the draught problem is necessary before one can decide whether Mildura will grow or shrink.Isn't most of the "industry" in/around Mildura related to growing "something". How is that  being manage with the draught. I am a…[Read more]

Hello AzaliaI read your post and not knowing what adverse possession was I googles it.Below is a link I found to a firm that may be of help. They seem to work in this area.http://www.slatergordon.com.au/pages/stepstoanadversepossessiondispute.aspxOut of curiosity, may I ask, did your friends father die without a will and is your friend living in…[Read more]

If your accountant has never done a tax return involving an IP before are you sure you're claiming all the allowable deductions? Making sure you claim all the depreciation you can is very important as this is not an out of pocket expense. Here is a link to the ATO site where you can download a paper called Rental properties 2007 – 8 which may be…[Read more]