Hi Paul,

So when do you have to pay the CGT?

Surely you dont have to include the ‘on paper’ capital gain on your tax return that year???

Pete

Hello,

I looked into this and my feeling is that you can rent out your ppor, and RENT somewhere else, and still claim a CGT exemption. However if you BUY another ppor, then you can still only claim one property as your exempt proprty (you can choose to nominate which property gives you the best tax position). It looks like you bought another…[Read more]

OK so far we’ve got:
1.debt free residential property
2.income via private lending
3.commercial property
4.buy ppor

Anyone done any of the following and would like to share their experience with:
1.Listed property trusts
2.Joint venture projects
3.Buy a block of units, strata and then wrap to the tenants
4.Developing vacant industrial land in to…[Read more]

Hello,

Any experienced wrapper can correct me if I’m wrong but I thought that the settlement date was 25 years or so in the future, or when they refinance whichever is sooner, therefore you dont have to pay the CGT liability until you have received a either 25 years of payments or settlement cheque from the refinance, either way you will have…[Read more]

what do you mean by mortgage backed private funding? 2% per month sound pretty good, where can these be found?

Hello Cutegirl,

You can get 90% and 95%lvr low doc loans, but watch out for higher interest rates…

Pete

Hi Aussie,

I definatley agree, I dont feel like a 7% return, nor do I feel like using heaps of cash to get a tiny return, but I also dont feel confident enough to develop a storage complex, but hey it might not be as hard as you might think…

I’ll have to think it through

I thought there was some speculation at some point as to whether the ATO was going to put a cap on the amount of points that could be gained through business/investing activities (including credit cards and mortgages) where the points are used for personal use.

For example a frequent business traveller who clocks up 100,000 points pa from…[Read more]

OK, I just went to the ATO website
http://www.ato.gov.au/corporate/content.asp?doc=/content/mr9739.htm
and it looks like the rumor I heard about points being subject to FBT (past a certain number of points pa) may not be the case. However, I think that at the end of the day, what you are really after is the best deal, and I think that revolves…[Read more]

Appologies to those offended, I was merely talking about my experience with the Ansett frequent flyer linked mortgage, which then got onto the point (pun) that the points are rarely worth getting if you have to part with any extra cash, be they from a credit card or from a mortgage.

Whatever…

Pete

I am still of the opinion that dollars are better than points.

I would never trade dollars for points (by paying more than I need to)

The way I see points is that they are last thing to consider. ie all things being equal I will buy from the retailer who has points on offer, over the retailer who is not offering points, and ultimately this is…[Read more]

Right, so I was half way there, it’s just the building depreciation that you have to pay back. Hmmm… at the end of the day any advantage you can get from the ATO I guess is a good one.

Thanks Scott.

Pete

I went to see one of Margarets franchises and was very disappointed. They seemed eager to get some money off me for their program (which was basically using an offset account and a credit card) and then they monitor it and tell you that you’re “doin’ great!”
We never got onto the buying property side of things as they couldnt give satisfactory…[Read more]

As I said, it is not income.

My question for you is why would you want to try and use interest earnt (or avoided) on cash in the bank, as extra assessable income in order to borrow more money, wouldnt you be better off to use the cash that you have?

This makes no sense at all…

Pete

Unfortunately Spanky, casual earnings are assessed pretty much across the board in the following way:

0-12 months =0% of your regular earnings.
12-24 months = 50% of your regular earnings.
24months+ = average of last 2 years of earnings.

The sort of lenders that would consider casual earnings are generally the non-conformers like…[Read more]

Offset savings cant be regarded as earnings, because they aren’t earnings.

Pete

Talking Credit Cards for a sec, I love my CC, it costs $49pa and I reckon I’ll get about $200 worth of petrol and vouchers this year.

The only time it is worth getting points is when you have to buy whatever it is anyway and you have found the lowest price. eg I would rather pay 95c/L for petrol with no points than 96c/L with points.

The…[Read more]

I have been wondering, when the wrapees eventually refinance, is it a refinance, or is it really that they bring forward the settlement of the loan that they have with you. Dont you as the wrapper actually own the property? ie it is your name on the rates notice.

So when they “refinance” and pay you out, they are really getting a loan through…[Read more]

Hi Matt,

I am in a similar situation, and thinking of wrapping. I live in Brissy and would like to share ideas. I can probably help you with your mortgage strategy as well.

If there is anyone else who would like to meet up, we could organise a bit of a gathering one weekend…

Pete

I like the Coles Myer Source Mastercard.

Interest rate – dont care, as I have never paid any interest on a CC.[biggrin]
Application fee – $49 if you want it linked to fly buys, $1 = 1 point (13000 points = $100 gift voucher)[biggrin]. OR nil app fee if you dont want fly buys.
The bit I like is 62 days interest free.[biggrin]

Pete