I imagine that during the time it’s being rented, if you’re still making mortgage payments, the interest is tax deductible, as are all other associated costs. It is after all, while rented, generating income. Of course, you may be liable for CGT the proportion of capital growth during the time it was rented….. ?

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this is off the topic, but i also have to challenge kkowalsk with the idea you only make the killing when you sell.
if the assett has gone up in value then you have in effect made the money the value is added to your net worth so your net worth has gone up.
if i bought shares that went from $1 to 10cents i have to say i’ve lost this money…

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I don’t think it’s only a killing when you sell. I refinance to grab that equity for other investments, and can ‘effectively’ have just got a property for ‘free'[]

In theory, yes. However, whether that investment makes you any money or not is a different story. Certainly, many investors (and I use the term loosely) recently have misused…[Read more]

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kkowalsk I disagree. What if the market is over supplied?

It was your choice to invest in real estate, that is one of the risks you bear.

It’s not really any different than someone that moves into a flightpath, then complains about the noise.

The system is designed largely to protect the tennant, because from my own experience, the…[Read more]

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Well done on a great buy, $47,000 equity straight away fantastic[], and some negative people are talking doom and gloom and other are out there making a killing well done.

It’s only a killing *when* you sell

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They only have to give us the 21 days, but it’s a heck of a lot harder for us to get them out that quickly.

And with good reason… it’s typically harder (and takes longer) to find a new place to move into than it does for the landlord to find a tenant.

I definitely agree, HousesOnly.

Whether you buy a house as your investment vehicle, or shares, the price is governed by what people are willing to pay.

If you make the mistake of hanging onto shares too long and they dip, you either wait it out (if they dip so low there’s no point selling or theres reason to think they’ll recover), or cut your…[Read more]

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b) Use Equity to start share portfolio and to fund financial education i.e. course in share trading and investing.

This is the one I’d go with. Simple reason, this is where the activity is and therefore growth.

Finding a +cashflow property will be tough now, and if you’re having to neg gear, you want to maximise your potential for…[Read more]

Like Terryw said, check with the council. But even then, be wary, councils can can change the rules at any time and have been known to do so.

Given that almost every man and his dog with a large block is trying to subdivide and build townhouses etc nowadays, councils are not always keen to accept such proposals, or place major encumberances on…[Read more]

At a guess, it will reduce her pension payment (which is asset-tested). And of course, when sold, she will be liable for CGT.

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“I worked hard at school, so I deserve to earn more money than some one who didn’t”

What a load of crap!

How so? The whole point of doing well in school is to give yourself options. One of those options is to be able to do a course that will lead to higher pay. The other option of course is not to go to uni, to get into a trade for examp…[Read more]

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Interesting!
Well Fudge111, as they say “It’s not how much you earn but how much you save!”

We are trying to close the gap between the rich and poor and make this country a more equal society. I agree that that’s how it should be and people are still rewarded for wise saving plans. (INTEREST). So save, save, save!!!

Realistically, saving…[Read more]

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The point I’m trying to make is that stereotypes of whatever section of society do not work. I don’t like lines being drawn in the sand that pretty much set an “us” and “them” theme to a debate (ie rich and poor)… The gap in the divide between rich and poor is getting bigger all the time in this country, but I’d like to think people still…

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hey, kkowalsk – “many at the really low end of the wage spectrum, any little extra goes into cigarettes/alcohol/gambling. Certainly, it’s a very generalistic statement, but probably not far off the mark for a broad cross-section of people of that socio-economic background.” – what section of the socio-economic landscape do you sit in to…

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I would argue that for many at the really low end of the wage spectrum, any little extra goes into cigarettes/alcohol/gambling. Certainly, it’s a very generalistic statement, but probably not far off the mark for a broad cross-section of people of that socio-economic background.

Those goods contribute little to the economy, but are nice little…[Read more]

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Hi fellow taxpayers,

What are your thoughts on an even simpler tax system?

Double the tax free threshold to $12,000 and pay a flat rate of tax after that amount regardless of personal income. No claimables, no rebates, income derivation is up to the individual.

I agree in principal, I’d rather have the option of hanging onto my money…[Read more]

My partner and I recently purchased… of course it doesnt count as its our first home, not IP. It will howveer become an IP in 3-4 years when we move into a bigger place when we have kids, and rent this one out.

IMO, if you’re not going after capital growth, but want the rental income, who cares what the market is doing? Shrewd property…[Read more]

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Well, i give in except to say that if people all struggle on 70k every person at the supermarket where i work must be bankrupt!!

And how can you explain Broz’s family, 5 kids and annual income 25,000, they manage it, so that is all i will say about that issue.

They manage it with a lot of help from the government. My dad used to have a…[Read more]

quote:I think the rich should just be happy they are well off and not be greedy

People in the top bracket aren’t rich!!!! $62k, if your wife is at home taking care of kids, and you’re paying a mortgage, is not much money at all.

The other thing you’ve neglected to consider is the very reason why you’re here (in this forum)… to find a means of…[Read more]

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You make some great points domdom, but i am going to stick with my theory.

EVERYONE gets their first $6000 tax free
EVERYONE gets their next $15600 at 17%
EVERYONE gets their next $30,400 at 30%
EVERYONE gets their next $12,500 at 42%

and therafter they are taxed at 47%, i mean, everyone gets a fair go, and 47% is high but it is still low…

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