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 only income is capital gain on selling places?

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 as low as 80% you will be on the way and nearer to setting your mother free.

That should be your first priority, you just have to work out the best way to get there.

And what about Adelaide?

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 it is advisable to try and hold property, there comes a time when it is better to sell, even at a lower price than you really want. You may find that this is one of them.
It all really depends on the value of the property and how much mortgage you have.
Consider the costs you are losing every month as against the loss you believe you will have if you sell. Also there is still the possibility that property will drop a little further in price, exageratting your loss.

Hope this helps.

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. BUT if you get one thing when you are young, then even if you have a break to travel you will know how to do it, see the results of first one and know it is worthwhile and also have collateral and credit history to make it easier second time around.
Good luck

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 to say no. Do the same with food etc. Don’t know why I find it so hard to say no to men I am close to but if anyone has any ideas on this would love to hear them.
I am sure if I can work out this bit I can give up.[blink]

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, but say you planned to buy, renovate and sell you could maybe get a mortgage before leaving job – one that is transferable to any property – then you should be OK for a year.

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 trussed it up.

Adelaide