[quote=The Contrarian]
Refinance your loans so that you pay off your PPOR and leave the loans on the investment properties….
Cheers.[/quote]

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 either your PPOR or one of your IPs to clear your personal debt assuming this is at a significantly higher interest rate. You could do this via a split loan and for a much shorter period than your housing loan. This new loan will not be tax deductible either but would save you interest.

Personall I would not sell good IP's to pay off my PPOR or personal debt unless my back was to the wall. 

Hope this helps
Elka 

Hello Flash

I 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 sell this.

Things to consider would be which property has gone up more in the last 6 months and how long do you intend to live in your new PPOR. 

Maybe you should discuss all this with your accountant before you do anything else.

Elka

Thereby ignoring the possibility that their kids will be left with a huge debt which they will have to pay out of their own pockets.

only good if you don't like your kids

<font size=”2″>Hello D</font>
<font size=”2″>Can you give us an idea on the return available for a car parking spot after management fees please. Also, an idea of the price of a spot? Also what are the expenses involved.I assume there is no CG to be had but does the price keep up with inflation?

Thank you for any info.

Elka</font>

Hello Renee

The best place to ask is always your accountant naturally.

Having said that as the property was built in 1986 the depreciation on the original building has now expired.
However, has the place had a major renovation since then? New fences, carport, inbuilt cupboards etc.etc. all qualify as capital works and thus are subject to the capital works depreciation. Other items like painting, carpet, HWS etc. are depreciated over a much shorter period so it depends on when they where done. They may also need to be listed in your settlement but I am not sure about that.

Here is a link on the subject on the ATO site. There is the possibility to download a PDF file which explains both deductions and depreciation for rental properties.

http://www.ato.gov.au/individuals/content.asp?doc=/content/31258.htm&page=4&H4=&pc=001/002/013/009/008&mnu=45&mfp=001&st=&cy=1

Hope this helps
Elka

Hello Chris

Yes, the 20% includes the PM (agents fees). Depending on where you buy your IP, the agents fees vary. I am paying  7% managements fees and 3% letting fee (for a new tenant). This is in Melbourne.

I think 10% is a bit low. I would work on 14- 15% to be on the safe side. 

Cheers
Elka 

Hello

Why not do both at once. By that I mean buy a house to live in while you renovate it.
The advantages are that you will be able to get the FHOG and if you sell there will be no CGT to pay.

Cheers
Elka

Hello Dave

Happy your willing to share your experience with subdividing and building. I went to the Fairmont Homes site but they don't seem to have the Memphis II model pictured, only the Memphis. Is the Memphis II a single story or 2 story home.

I have never subdivided but have an IP which I would like to subdivide and build on one day. Your journey, any problems you encounter and any tips you learn would be a great learning experience for me and maybe others on the forum as well.

It sounds like your subdividion is complete? Did you have any problems with the process and what sort of costs were involved. Did you have to submit your building plans to get permission for the subdivision.
 
Cheers

Elka