quote:your acquisition cost has changed from $230k to $250k so assuming this is just a transcription error, your gross capital gain should be $87,120

I think you mean $77120, this slightly changes your later figures.

The original $23K is subtracted from the gain as it isn’t gain – it’s your original investment. This is a cash on cash return, so…[Read more]

quote:forum record goes to Shane!

I seem to remember hearing something about quality being more important than quantity.

Haven’t seen much quality here today.

After 12 months you would have got a 50% discount on the CGT.

So you would have paid tax on 0.5*(145K-90K) at your marginal rate.

Rod.

You’ve got the general concept correct except:

You don’t need to sell, you can refinance to another IO loan or to a P&I loan. In fact you’ll find that many of the IO loans convert to a standard 25yr P&I loan at the end of the fixed period.

Rod.

Your question is far too broad.

How long is a piece of string?

Rod.

There’s no CGT if it’s your primary residence. Doesn’t make any difference if you’ve been there < 1 year.
As CGT is a federal tax it doesn’t make any difference which state you’re in.

Rod.

You’ll get your 2nd star at 50.

Welcome to the forum.

Rod.

They’re a capital expense so they get added to the purchase cost for for CG purposes. But as you don’t already own the asset at the time of the expense it’s not a deduction.

Rod.

“skilful, inventive, complex, mysterious”

I think we’re getting a bit too smart for our own good.[]

Huey,

I admire your attitude. You’ve summed up one of the really important things about this whole “game”. That is that you have to have your own goals and aims and work towards them in your own way. There’s no point trying to make a fortune just for the sake of it. There has to be a purpose.

Rod.

Interesting reading, The first article is available online at http://www.brw.com.au

Rod.

chan only replied to get to 100 posts.[]

Me thinks you mean http://www.ato.gov.au

Ms Elvis, your conclusion is correct, but your terminolgy isn’t. Yes the $10K of improvements will be added to the capital base cost for CGT purposes and you will only be taxed on $40K.

Rod.

Yes, they can. One of the main reasons against cross-collaterising is that it makes future re-financing for further purchases more difficult.

It’s best not to give banks any more security than you need to.

Rod.

I think you’ll find there’s some people on this forum that have done >20 IPs whilst still holding down a full time job.

Rod.

Hey crashy,

I just noticed you’ve got your 100.

Well done.

Rod.

The rates seem to be quite high in a few places in QLD, compared to VIC. One thing to consider though is that these include the water and sewerage rates as well, as these are done by the council. Unlike our seperate water companies.

Rod.

quote:”can you sell our products even though they are not the ideal product for the client, and pretend you know what you are doing?”

Yep, those are the ones I met.

Rod.

Well said AD,

Everyone has to find their own niche. And as you progress, you’ll probably find that that niche will grow and expand as knowledge and experience increases.

Rod.

Hi Fizman,

You’ve been given some great options here. But it really comes down to you. Digest the information, decide which path to take, make a plan and stick to it.

Once you’ve managed to sort this out you’ll be in a much stronger position for future investments.

Only you can make it work.

Rod.