Assuming you bought the property after Aug 1996, you are correct, and your sister is wrong.  Don't forget the 50% CGT discount either.

Theres a number of reasons why I don't like managed funds:1/     You have bugger all control over your money.2/      The overall value of your investment can fall, and yet you still have to pay tax on it !         Example           Opening Balance     $300,000Add: Net Income                  $10,000   (This is what you pay tax on)Less: C…[Read more]

Monster24My exposure to John Fitzgerald has been as follows:1/    I went to one of his Melbourne seminars last year,  and had one follow up free consultation.  (not with John)2/    I have read all his books and seen all his DVDs.3/    I have read his Wealth manual, "Untold Wealth: Sucess from Scratch"4/    I have seen his infomercials a…[Read more]

I suggest that everybody reads the May newsletter, as Simon makes some very intelligent comments about this very topic.

Auction Headlines UpdateSunday Age 29/04/07   – "Fiery bidding as market surges forward"Sunday Sun 29/4/07    – "Yesterday's auctions: happy days"Sunday Age 06/05/07  – "Sales add more fuel to the quoting fire"Herald Sun 07/05/07  –  "Autumn rush looms"Age 07/05/07               –   "Buyer frenzy points to winter activity running hot&qu…

The cost of "renovations" as a general rule are only tax deductible when you sell the property. This is because they form part of the cost base of the property.  However, you can write off the cost of the renovations at the rate of 2.5% per year. This is known as claiming a "capital works" deduction, which is a similar concept to…[Read more]

Thanks for your comments LA Aussie.  Just thought that you would like to know that in today's Age, it was stated that agents underestimated the auctions prices by an average of 20.6 per cent, and the weekend before that by 20.3 per cent.

Thanks Richard