Let’s see if I get this right.

You pay cash outright for the property. The contract is stacked say $100,000. This will mean that down the track, you will pay less CGT (only if its an IP). CGT will be approx $24,500. The increased REA fee??? The pay off for the vendor to agree to this???

You try to finance using the equity in the property, but…[Read more]

Andy,

Yeah, depreciation while your renting it out. Say, the first 6months before you move in. I’m sure that the most depreciation is in the first few years of a new place. Every little bit will help in your situation I suppose.

Munjy

Originally posted by redwing:

Even more worrisome, he thinks central banks around the globe out of
desperation will try to re-inflate the world economy with more
liquidity that will create an inflationary spiral unseen in the
economic history of mankind.

Personally I think that further correction/downturn in the property market is possible,…[Read more]

Dr X,

What would be the reasoning behind giving him a 1st class trip? You’d think they’d just do a complete runner!

There are somethings in life you just can’t live down or even forgive yourself for. Your friend must be kicking himself still.

Munjy

Not having kids as yet, I’m sure I’ll change my mind in the future, and change it numerous times. However, I really do believe that by not allowing kids to see the real world for themselves, you are actually depriving them of acquiring the necessary skills to survive and thrive.

Once I do have kids, I will teach them the best I know how about…[Read more]

That’s his first post?

What’s the bet he never posts again?

I’ve heard of stacking also as “jacking the contract”. It is fraud absolutely and I’ve never used it but have heard of its use.

Especially good for people who want to get 100%+ finance. The vendor doesn’t really get anything out of this and unless it’s his PPOR, will have an increased CGT bill. Also, the REA will get a bigger cut! When you come…[Read more]

Andy,

I totally get it now. And I’m with you on everything. As for loan structure, I’m sure TMA would say IO with offset. Gives the most flexibility. As for interest rates, if you sell this home within a yr, I don’t think it’d be worth fixing.

As it’s a new unit, you’d probably get good depreciation initially – have you looked at that? It may…[Read more]

Would love to know what was on the agenda and is the purpose to just network? What are you all discussing?

Originally posted by ss2306:
Is there any way of tranferring it into her husband’s name without paying stamp duty again? The title deed for the land is in her name but the bank loan is in her name with her husband as the guarantor. What are the implications of this scenario?

Hi ss

As far as I know, there’s no way of transferring title…[Read more]

Hi Andy,

I’m really confused about your strategy.
Originally posted by andymitchell:

with the ultimate aim to sell quite quickly so we can buy a larger property…

If our plan is to sell within 12-18 months

Why would you try to buy and sell so quickly fully expecting to realise a loss at the end of it? Why not just rent? There’s no rush to…[Read more]

Get really good at poker?

Originally posted by richardcass:
Hope this makes sense…(hope even more that it makes sense to the tax man!)

That’s the bottom line isn’t it? Ever notice that when you ask an accountant a question he never really seems like his 100% sure? I always get the response that tax is a very complicated issue… etc, which I totally empathise

Also,…[Read more]

Sounds like a great concept actually Lumwood. Kinda like a timetable for your entire day everyday of the week!

The closest I come to it would be a “to-do” list in my diary for any particular day. Not really broken down into a time budget as such.

But in all honesty, I’ll probably never get around to doing one, just like I really don’t have a budget!

Really? Forever? That’s great. Dunno where I got that from.

Thanks

I’m no accountant, but I’ll give my best with this one.

I’m sure that CGT is payable by yourself if you are investing (which seems like it) and yes, if you hold for over 1yr then 50% discount. The owner-occs won’t need to pay CGT if its their PPOR.

Just because the building is a duplex, doesn’t change your own or the other person’s tax…[Read more]

Hi pasandbec,

I think the confusion is here. You can’t claim “capital loss based on the percieved / approximated / appraised”- this is true.

However, a capital loss can be offset against future capital gains. E.g. If you sold a house/shares and lost money, then sold and made a profit, then minus the capital loss from the capital gains before…[Read more]

I fall just outside the age, I turned 26 in May. In any case, my story is that I bought a commercial IP last year. Nothing flash, but a start. Have been approved for a home loan but still thinking renting might be the way to go…

I’m in disbelief at how far some people travel given the time in which they’ve done it! Awestruck! Major envy

Without declaring bankruptcy or something similar, how could he have gotten out of the lease? Pretty wierd he even bothered to call you

Munjy

Hi Mja,

I’ve been through the hassle of building your own house. I didn’t really like the experience, but the end result seems worth it. Mind you, went with a project home coz cheaper so maybe you’ll be different.

My personal opinion about some of the issues you raised are:

air-cond: I have ducted, and not too sure about split system, but when…[Read more]