What you owe is irrelevent for CGT calcs.

Roughly speaking (I am not an accountant), it is calculate like this:
Sale price $250,000
less purchase $92,000
= $158,000
You can minus some costs such as stamp duty etc, but may have to add back some things suxh as any depreciation claimed.
-$8000 costs (guess)
= $150,000 Capital Gain
Since you have held it more than 12 months, this is reduced by 50%
= $75,000 taxable capital gain.

If you are the sole owner, then this would be added to your other income, and you would pay tax accordingly.

Terryw
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You owuld have to read your contract to see how binding it is. But if the other party is not happy, then you could possibly both agree to end it.

Terryw
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The trouble with using a company is that you lose the 50% CGT reduction and you can only distribute profits to shareholders in accordance with their percentage ownership. The shares could be owned by a trust thought, but you would still lose the discount of CGT.

So you had better look into trusts. At least do some preliminary research

Terryw
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No reason for the properties to be cross collateralised.

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RAMS also have another mortgage insurer, in addition to PMI and Genworth, the 3rd one being Prime.

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I think it would work like this:

Capital gain = $1000. This is distributed, if to an individual, then the person will get the 50% reduction in CGT, and this will become $500.

The remaining $1000 will be an asset of the trust, but it still has the $1000 loan, so it could pay this back, or keep the money, and pay the loan back later.

For a unit trust, the $1000 CG would have to be distributed to unit holders based on the percentage of ownership.

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The penalties should be listed in your Contract of sale.

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They are the same.

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A lot of the ANZ managers do their own valutions for ppty in country towns. He probably used the letter from the agent to help him ‘determine’ what the value was.

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Yes, it will be hard for you to get finance initially. You will need a deposit, probably at least 15% plus closing costs, and the rates will be very high – discharge costs will also be high.

Possibly a better option would be to look at vendor finance – ie someone wrapping a property to you. This will get you started, back on your feet, and then a few eyars later, you should be able to refinance out with a norrmal lender at much cheaper rates.

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