Hi Oztexs,

Firstly, let me just add a very important note….please do not take any advice in the forum as gospel (mine especially!!!!); always seek professional financial advice, before making any major investment decisions….much of what is suggested here (albeit valid) is often biased by individual experiences and opinions.

Your situation has many things that need work.

Starting with you PPOR which is worth 400k, and which you are unhappy in. You suggested moving to another area and renting same. By all means, rent elsewhere, but try and make sure the rent you pay to someone else is less than the rent you get from tenanting your own home. It is worthwhile considering renting it out, as at the moment, being your PPOR there are no tax deductions (i.e. interest on loan payments, repairs etc etc).

Maybe you could put your parents into it, renting it for a “nominal” fee; claim the tax deductions, and they might even be able to apply for “rent assistance”?????

I would certainly take a closer look at your “paid off” unit, as it may be worth considering drawing on some of the equity there to help reduce the cost of your current PPOR and then tenant it out. Or maybe you could use some of the equity to purchase a new PPOR in a more favourable area.

There are several options to consider, and it is vital that you sit down and do the “sums” especially as you have (a) large amount of equity in your PPOR, but no tax benefits from mortgage on same, (b) a non-income generating property, which also provides no tax relief, and above all (c) are unhappy where you are living at present.

There is much to consider, and it may be worth your while talking to a financial advisor who can help re-direct some of your plans, and help achieve your goals….especially if you hope to have a baby in the near future.

Good luck, and all the best,

Jo

Hi fjficm,

Not an option, so I have been told; if it were that simple, everyone facing a possible CGT bill from the sale of his/her property would “give” it over to their spouse.

I asked about it, but was quickly informed that it could not be done; that gifts were limited to a certain amount (eg. 50K), and even if it was possible, you would be giving it at “market value” of 400K. The ATO would view this as a huge tax dodge.

As for selling it to your mum or dad, who have no income; once they have the property, they have an asset, which unless they live in it, becomes a taxable income (IP), and may even affect any centrelink benefits. Either way, they are liable to pay stamp duty, and YOU still pay CGT because of its increased value from 200 to 400K.

Nice try!!!!

If it could work, I am sure many would have done it long ago (me included).

Jo
P.S. I cannot make any guarantees on the information contained herewith, it is only based on what has been told to me by my accountant.
PLEASE REFER TO YOUR ACCOUNTANT, FINANCIAL ADVISOR or THE ATO for more accurate, and detailed information.

Hi Richmond,

I agree, I don’t think the government’s aim is to lower house prices; it’s focus (apart from winning votes) is to make housing “more affordable” thereby introducing additional incentives (FHOGs)for those entering the market to go out and buy.

As for the media, it’s level of influence, is minimal, but for those (few) who base investing their hard earned dollars soley on reports from media coverage, these people are nothing more than sheep IMO.

Jo

Hi Redwing,

I got a PM from Yack yesterday; so he is around, and as Celivia said, he was replying to posts as well. He actually posted 2 questions one entitled “Anyone been audited by ATO” or something like to that effect.

Cheers,

Jo

Hi Marisa,

You have a virus; which obviously your scanner is not equipped to dispose of. I am not sure about the ferosity of this virus, but I do remember it going around years ago.

I am not sure how it will affect your PC at the moment, but maybe you could try and update your scanner (in the background) and try to quarantine it. I am not virus-savvy so unfortunately, I am only suggesting what I think, MAY WORK.

Good luck,

Jo

Hey WallFlower,

Didn’t they tell you???????????[blink][blink]

It’s at your place, and you’re putting on the tucker!!!!!! [chef2][chef2]

Jo

Hi Bruce,

Smart man this Dolf; who is he????????

Jo

Hi Shaunwalker,

Easy…..just give them notice of intention (60 days here in Vic) to increase rent, then simply up it!!!!![thumbsup2]

DVD player????????? Why stop there????? Just tell them that if they pay an extra 100 dollars a week you’ll come along once a week and put on a show!!!!!! [drummer][guitar][jester]

Seriously, it sounds like they have it pretty good, the furniture you have provided is in good condition; I can’t see why you have supply their entertainment as well.

To me, as long as the tenants have the basic comforts like heating, cooling, carpets, wardrobe space, car space and so on……the rest is of little concern to me………they’re my tenants, not my kids!!!!

Cheers,

Jo

Sounds too EZY to me!!!

As they say “if it sounds too good to be true, it usually is” !!!!

Seriously, I don’t dispute that it COULD work, but there is a heck of alot of trust that needs to be had here, not to mention a contract in writing of some description, i.e. outlining pre-reno selling price, agreement to split profits etc etc. If you are going to rely on heresay alone……you run the serious (and not so EZY) risk of getting burnt!!! [satan][wreck][wreck]

Nice try, but I don’t think so.[rolleyesanim]

Jo