Hi guys
i am wondering what an offset account is and how it works, the pros and cons?
Regarding capital gains tax when do you become exampt it or do u have to pay cgt every time u sell?
What are the pros and cons on positive gearing Vs neg gearing?Regards Adam
Adam,
Welcome to our forum and I am sure you will get out whatever you put in.
As a start you should aquaint yourself with the search function. You will find that there is an enormous amount of info here that will help with all your questions.
You have asked some very open questions… to get you started – an offset account is an amazing account that reduces interest paid on your loan by the amount held in offset. It can have great tax advantages too.
CGT is exempt on your home.
Pos gearing puts money in your pocket each week. Neg gearing costs you.
Seems an easy choice? Problem is that often the better CG prospects are not able to be bought at a pos geared price. there is a trade off here.
Do a search and hit us with more thought through questions.
Cheers mate,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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