Lets have an update.December rate up 0.25% plus bank increases….more to come.Home rates 'to hit 8.5%'Author: Peter Martin, Economics CorrespondantDate: December 10, 2009Publication:  The Age (subscribe) Leading economists have forecast a rebound in Australia's economic growth rate that will force another series of interest rate rises, adding at…[Read more]

Dan42,             regarding – house prices would not be allowed to drop 40%.Obviously you mean in Australia? Ask an American about house values and reserve bank saving them..Whilst I take your point that house prices have not crashed as predicted…lets just wait a bit longer and see if the economies around the world continues to improve once…[Read more]

TheBish,                Get used to it… lots more to come….goodie.

Another month – another 0.25% rate rise……Interest rate rises send house prices into reverseAuthor: Chris VedelagoDate: November 24, 2009Publication:  Sydney Morning Herald (subscribe) Get ready for a surprise. Despite the appearance of a market on fire, new figures from Residex show that property prices may have lost ground for the first ti…[Read more]

cmason,               If you buy a house for $300,000               You pay stamp duty say $15,000               You pay solicitor fee say $1000               You pay inspection fees for structure and pest say $500You cannot claim the cost of above on tax, but you can claim total $316500 as your cost base for CGT when you sell.But if you do 2 1/2…[Read more]

Katy,        Yes. There has been rummers of it being the sellers responsibiliy some time in the future.The sellers doesn't need to fix a problem, as you say, its then up for negotiation on price if you find a problem or they just say " too bad take it or leave it" and you walk away, but have to pay the solicitor and inspection fees. No tax claim…[Read more]

DeeBeez,                 Can you afford to pay the interest if you have no tenants for a while?                 The new unit will give you lots more deductions than the older unit to help with cash flow, but against this you have the one near the beach will always be worth more and give better rent for the long run gain.                 Haven&#03…[Read more]

microchip78Reply to first part – I do not know all your individual situations obviously, so do not know what bank or banks etc have your loans, but if same bank for both. Then maybe they will charge a valuation fee, a withdraw fee, a fee for breathing ( just a joke). Also you will need to keep some calatoral on house otherwise morgage insurance…[Read more]

propertybaby,                       If you are travelling – what are you going to use for expenses??If you are not working , depending on what part of the financial year you are away. Then maybe you should do nothing, you can utilize the $6000 tax free part of tax as your investment return from your rental. Just a thought.

microchip78,                       If you call the tax office, they can give you a ruling.But, my guess is – you will not be up for any tax, since are only withdrawing equity, your bank may charge you a fee and may not even allow it since you will have no equity in the house, but that another subject.Also I can understand your reasons for your…[Read more]

Suggest you go to this site as posted by weath4life and start worrying.http://www.youtube.com/watch?v=kunB4SnAh4g

wealth4life,                    I knew of this, but its good to see a 60 min post to back me up. Look out America and look out the rest of the world.

Lets have a monthly update.Interest rates up 0.25% and FHBG down. It's a start. Lets see what happens next month.Noted everyone saying house prices are up. Yes this is correct, up since last year, but still overall flat over last 4 – 5 years taking inflation into account.The post is related to house prices as of the end of September 09.Dan42 -…[Read more]

Qlds007              Next they will have 105% loans freely available again and we will get back to where we started again and then have another crash in 10 years.

Ksana            You can claim to borrowing cost over 5 years eg bank feesBut you have to claim your stamp duty and conveyancing fees when you sell.But then again I'm too lazy to talk about it…..

Perhaps I should have added a question mark ?? after the statement.This just posted.Just like a giant ponzi scheme, people have paid to join and will only realise profits when the next generation pays even more to jump on board.The problem that Mr Stevens is warning us about is that one day, perhaps not too far away, the next generation won't have…[Read more]

Andrew,              Also its tax free, saving you another 30% or so.

I think the good old days of capital growth have gone years agoMaybe if you are lucky some small capital growth, but probably capital loss is the expected thing over the last 5 years and into the future.Good luck

frosty 1            I think the answer is NO.You are trying to claim against a property you do not own, the only way I think you could claim it is if you were a full time investor ( or most of your money came from investing not working ) then you would be classed as an investor for tax ( probably what j900 was hinting at ).        …[Read more]

IP Freely,                 I think its a good thing for auctions. Bad for pest and building inspectors who can do one job and then copy and paste for next couple of customers, and make money for nothing.                  But of course if its run by the government – then it will definitely be stuffed up.