Forum Replies Created
Yes, the $5K is on top of the fed. govt. first
home owner grant $7k. Though, the Vic FHOB(onus)
lasts for I think 14 months only, and it’s in the
form of $$ for FHO to spend in any way one may
like, even to buy something other than property!I guess the debatable issue here is that I am not
“selling” the subdivided lot to the family
member, and therefore no real $$ involved in the
transaction. So, I would have though for stamp
duty calculation sake, the valuation requirement
will still apply … but not the CGT issue,
certainly not to me being the original owner now
parting part of the property for $0 gain.
In real term, not withstanding the CG, I am losing
half the block materially, so my instinct tells me
it should have been treated as a capital loss
event for me ….[biggrin]I am hoping which will
provide tax break for me in the future CG event.Thanks for all your replies so far!
MCW
Considering myself a newbie in property investment
the inputs here have been really good education
for me.There is only one main issue that keep sticking
out at the back of my mind stopping me from taking
the next step in investing in more IP.All investments (stocks or IP) require capital $$
to get into and for most it means mortgage/loan.
In order to make the whole exercise work, be it
-cf or +cf, the bottom line key factor is the
cashflow! Just like running a biz, one could be
profitable but without the cashflow as the life
blood, it can choke survivability.Till this day, I have still not been able to find
a good safety net to cover for income loss due
to job loss in order to sustain -ve geared investment besides my own living.It’s great to have tax-break especially for high
incomer earners, but I can’t help thinking of
the reality if one losts his job & can no longer
get the same level of income & cashflow to fund
the -cf gap. It will surely have a big impact on
the overall plan, won’t u agree ?Guess I am paranoid, but I have yet to find a
strategy or system that could let me invest with
peace of mind and not having to solely rely on
the main income source as the cashflow to service
the loan.Any comments on that ?
MCW
Thanks for the reply, Dave.
Any idea of a 3rd party company who can does a
quality DD on potential wrapee, short of going for
a realestate agent ?Thanks
MCWHi
I am newbie as well but my opinion is that, having
to choose between paying ATO and the bank, I will
choose the latter, ie refinance the IP1 to get
access to its equity, provided it has some!CGT could be as high as 48.5% (but one-off) vs
bank interest rate <10% though ongoingly. If you
have other IPs that are already +CF, that may well
cover off any short fall from the IP1 that is
refinanced for purpose of getting access to its
equity.I have interesting discussion on topic of this
nature with various parties and the concensus
seems to be that u need about 5 +CF IP to help
you refinace another IP to access its equity as
“free money” that can be used for lifestyle. I
have no idea of where the number 5 comes from, it
may well be just a reflection of individual’s
situation I spoke to. But the more +CF IP one have
the better off one can be that’s for sure!
