I have amended my calculations and they match the figures produced by my spreadsheet perfectly (well, nearly)

the only difference is that my SS calculates the refund at 43.5% (i.e including medicare levvy) whilst the other does not…when I take the additional…[Read more]

If to fix – 50% or 100% (or other)?

e.g. if Person A had a 450K mortgage…fix or not….

Not looking for financial advice, just a query about what people here would do.

Plus, how long before the banks pass on the rise in their rates? Does this differ for variable and fixed rates?

Derek – thanks for the advice re depreciation etc…I’m sure it makes sense to an accountant.. As we have been in the unit for approximately 6 months, do we claim 50% of the year 1 depreciation, even if it is rented…[Read more]

Cant understand that – thats the same duty you would pay on a 500K purchase?!!

I’m going to call Nick M. (accountant) – see if he has some time to discuss…[Read more]

Just confirmed with the OSR, NSW. No such thing as a love and affection exemption between spouses on a PPOR transfer.

Give me a break! Anyway, thats a big blow to renting out the unit, as the tax breaks would effectively half.

Back to the drawing board.

One note: We did get an independent valuation prior to signing the dotted line…[Read more]

Hope you dont mind if I call you sometime next week? Cheers.

Hi,

Thanks for the response. Our situation is this:

Bought unit in N. Randwick off the plan in late 2002, 515k.

Wish to sell this year, probably worth around 480k? A recent valuation put it between 480-515K, so I’m leaning towards the low…[Read more]

We do have enough to buy another proprty i.e. investment, but as you mentioned, the rent would have to cover the mortgage on this one, as we dont have enough flexibility financially (well, I dont believe so, I havent spoken to an accountant yet).

I would be interested in buying a cheap investment somewhere (not…[Read more]

I understand you have to live in the property as your ppor for a minimum 6 months, starting within the first year of purchase, so you could effectively move in after 10 months, stay for 6, then move out again..and be entitled to the stamp duty exemption, and the FHOG.

I know there are many posts on this, so do a search to get more “solid”…[Read more]

Yes, that person is certainly an unlucky sod (it’s me if you havent guessed).

Ah well, you live and learn! Gor to remain postive.

Would your advice be to try to hold on to the unit, until the market picks up again? I’m thinking of renting the unit out in 6 months (as rents are looking to be quite solid going forward),…[Read more]

To cut the long story short, the vendor originally extended the settlement date on the unit my wife and I are purchasing (off the plan) from June 05 to Sep 05 (86 “rain days”), then 1 week before the settlement date, moved it another month to late October.

The claims were “rain…[Read more]

Wondering what the benefit of putting additional money into an IO loan with no offset?

You may be right with the onsell idea, although we will have to pay stamp duty on the purchase if we sell before settlement, we will not receive the stamp duty exemption, and we will have to pay stamp duty on the next purchase, so its a bit of a hit aswell, probably about the same according to our recent valuation (this is my…[Read more]

Thanks for the reply, I’ll check on the application fee thing.

Regards,

Anthony

You mention depreciation…I understand capital loss, but where would depreciation come into it for a PPOR – I thought that was only for investment properties (or is that the angle you are looking from)?

Cheers,

We bought the unit off the plan at the height of the boom, its now dropping in value – to be honest I want a clean break from it, I can see it being a burden in the future if it drops in value any more. We are hoping to start a family, and as such need a bigger place. We may consider renting it out I suppose, and do all the -ve gearing…[Read more]

We are actually in sydney..so I guess the outlook is even worse than Newcastle..? It wont be our last purchase, I am hoping to sell the unit after e.g. 12 months, take the hit of a loss and lay off the market for a while and see where it is going – I’m not concerned…[Read more]

Are the valuations provided by good valuers a true reflection of the market? I mean, I will probably make a big decision based on their assessment, so I have to know I am obtaining accurate info. I know the market can fluctuate up and down..but I need figure I can rely on.

I’ll contact depreciator…see if he/she…[Read more]

Thanks for the comment, but that is something I have been aware of for the past 18 months, unfortunately I cannot do anything now but buy the unit, or forfeit the 10% deposit. I am stuck between a rock and a hard place and do not really have a choice.

Thanks for the help.

To put it simply, could anyone out there check out my spreadsheet to make sure it all works out ok? It’s fairly complex and I need to rely on it to make the final decision.

Thanks guys.

We are both in full time employment.