Forum Replies Created
Amanda,
Thanks for the excellent post !!!!
I have heard that sometimes if the neighbours object you may need to go to VCAT – is this part of the reason that the Development approval may take several months ?
Vivek
Vivek
Hi Julie,
Not sure if you have seen the Best of PI.com sticky message – it has a link to a book review list – here is the link: https://www.propertyinvesting.com/forum/topic/6845.html
For me my personal favourites are “The Richest Man in Babylon” – it is like reading a story but the essential principles are all there, and one that has not been mentioned in this thread is “Money Secrets of the Rich” by John Burley, more to do with wealth accumulation than actual investing but very well structured.
Hope this helps,
Vivek
Vivek
Hi There,
I am not an accountant but I believe that the laws related to CGT depend heavily on when the person deceased and when property was acquired (pre or post the introduction of CGT ).
The ATO web site has a specific section for Capital Gains Tax relating to inheritance – check it out at: http://www.ato.gov.au and select the Indivduals, Capital Gains Tax menu. The section is titled “Gifts, inheritance and deceased estates”.
Rgds,
Vivek
Vivek
Hi Summer2006,
I heard exactly the same conflicting pieces of advice which is what made me go to the ATO web site in the first place.
I guess that you have some interesting choices:
1) Hold onto the property and let the value of your tax free capital gain be “diluted†if the market stays flat for a while.
Or
2) Sell the property and realise the tax free capital gain now, especially since you know what the market is paying for the apartment.If you did decide on option 2, I would be going to the agent who sold the other apartment and seeing of you could “do a deal†given that they already have a list of people who have expressed an interest in the other property.
Might save yourself some advertising costs.
Best of Luck,
Vivek
Hello Summer2006,
I was in a similar situation and I misunderstood the capital gains tax laws to be:
CGT = the valuation when you move out less the cost of the property initially.In actual fact the tax office use a totally different formula :
Total capital gain made from the CGT event x (number of days in your ownership period when the dwelling was not your main residence divided by total number of days in your ownership period)
And they give the follwoign example on their web site: http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm
“Main residence for part of the ownership period
Andrew bought a house under a contract that was settled on 1 July 1990 and moved in immediately. On 1 July 1993, he moved out and began to rent out the house. He did not choose to treat the house as his main residence for the period after he moved out, although he could have done this under the continuing main residence status after dwelling ceases to be your main residence rule.
Note
The home first used to produce income rule does not apply. This is because Andrew used the home to produce income before 21 August 1996.
The contract for the sale of the house was settled on 1 July 2002 and Andrew made a capital gain of $10,000. As he is entitled to a part exemption, Andrew’s capital gain is reduced as follows:$10,000 x 3,288/4,384 = $7,500
As Andrew entered into the contract to acquire the house before 11.45am (by legal time in the ACT) on 21 September 1999 but the CGT event occurred after this date, Andrew can choose to use the discount method or the indexation method to calculate his capital gain. “
Note: I am not an accountant so get professional accounting advice.
Hope this helps.
Rgds,
Vivek
Vivek
Hi Simon,
I am with Westpac – the policy states the “The most we will pay for loss of rent is an amount up to $1000 per week up to a maximum period of 10 weeks”
You can check out the policy on http://www.westpac.com.au/internet/publish.nsf/AttachmentsByTitle/FSR_HomeContentInsPDS.pdf/$FILE/FSR_HomeContentInsPDS.pdf
Hope this helps….
Vivek
