Does that mean if you earn 50k you pay the standard tax rate for that then if you sell a house in same year and capital gain is 50k what do you pay, does the extra make your income 100k or if seperate what CG do you pay on the 50K?

Surely you don’t pay capital gain tax and also add profit to income and pay on that too?

What happens if your…[Read more]

Ah, the memories.
When I was young and stupid (or at least less so than now) I took a little overdose. My neighbour over the road sent her lodger over to look after me and my 3 yr old son.

He was just cute. Ended up together for 2.5 years but we were both too young and in his case the 70’s scene was more fun.

After both having other…[Read more]

I think you should do some research into value adding, what do other properties in the area that are not tired sell for?

Will you do the reno’s yourself or get in tradesmen? What would be the cost of doing the reno’s?

If you can add more in value than it costs then that is definitely the way to go, you will end with lower LVR and even if not…[Read more]

HI

Point of transferring outstanding debt from PPOR to investment is that you get tax back on the interest from IP but not from PPOR. Overall this is generally the better strategy and although technically they would be more negative, your personal cash would be slightly better.

Hope this helps

Thanks Steven

Hi Steve,
Is it also possible to put the start of each thread on mouse hover to save opening everyone?

Keep up the great work

Cheers

And what about Adelaide?

The adelaide paper listed all suburbs median prices at the weekend for 2nd quarter 2004 and 2nd quarter 2003. Our suburb looked as if it had gone down in price, but only 9 sales had taken place.

Surely if it just happens that more small units or 2 bed houses sell in one quarter and the other had the large houses with views, wouldn’t this affect…[Read more]

Hi Robert,

I am not an expert but have been in similar situation. As far as I am aware, unless you can gain a higher rent, or cut your costs, there is no way to improve the cash flow.
Options to cut costs are pay of lump sum (assuming some access to cash), re-finance and extend the period of years outstanding, interest only.
Although in general…[Read more]

Hi Steve

Very interested to know how you arrived at your figures as I also got the same as Mel -1505. Have tried a number of times in varying ways and always comes out the same.

I am new to all this and very keen to learn the finer points.

Cheers

Wish I had started at 18. I don’t agree with waiting but agree with Derek about finding a positive cash flow place, that will get you going. Get a foot in the door with one place, then get that job, do a little travelling or whatever.

Trouble is with waiting is that it gets easier and easier to put off and all of a sudden you are retiring.…[Read more]

As everyone has said – Freedom to chose what I want to do, work less hours, different jobs, travel a bit more.

I don’t care about the money itself, just the ability to do the things I want before we both get to old or frail to enjoy them.

I would also love to give up – have in fact done so many times for varying periods up to about 8 months. BUT always seem to go back to it. I find it harder these days (30 years smoking) but can still go week or two with no worry. Biggest issue seems to be husband who smokes, I am Ok at work or if he is out but if he is smoking I find it hard…[Read more]

I have found a great way to get plants is look out for houses being demolished, then contact owner and ask if you can go dig them up. Some let you for nothing and some want a small fee but great way to get more established plants giving garden better look quicker

Hi Tycoon

Not necessarily a bad move to give up job, a lot of successfull people have become so from being right down on money etc. SOMETIMES it helps you to focus when you are in position of having too. Depends on your fear factor.

Also if you are going to follow Steve’s pos cash flow you will need to consider issues about borrowing money,…[Read more]

Hi

Are there any rules about ownership etc? Do you have to have a UK address or is it OK to be Australian and buy outright in UK?

First property was PPOR, bought when I was 17. Did not like idea of renting.
Was a single parent so was lucky to be renting a large UK Council house when council decided to sell them. Got great deal. No choice came into it, but I liked the house. 2 storey, 3 bedroom, huge block (about 1500sqm. I build an additional bed and bath and really…[Read more]

Well done, great example to us all. Just hope a little of all this will rub off on me.

Cheers, keep it up and enjoy life

Adelaide

Thanks