Hi Lisa,
Thank you for the information relating to Cherie’s course. It is as well that purchasers are made aware of the limitations of purchasing such goods secondhand.

I have referred to your post in a new topic that will reside in the Buy Swap and Sell forum -…[Read more]

I think the natural “order of things” should preclude rates reaching those levels. Here’s why:-

1. Back in the 80’s when we were paying 17% Interest, the average value of a house was $50k to $100k. Also back then, yields were 10% to 15%. Yearly interest was thus in the order of $9k up to $17k.

2. Over the 90’s, prices doubled, but Interest…[Read more]

Hi Michael,

I’m thinking of the following solution: I believe the value of the property would drop by at least 20%.

Thanks for the answers provided so far – that now leads me to a few more questions/comments that might help you to arrive at the right conclusion for YOU. You mentioned you expect at least a 20% drop, and I understand that to b…[Read more]

Hi Michael,

I’m thinking of the following solution: I believe the value of the property would drop by at least 20%.

Thanks for the answers provided so far – that now leads me to a few more questions/comments that might help you to arrive at the right conclusion for YOU. You mentioned you expect at least a 20% drop, and I understand that to b…[Read more]

Hi Michael,
Steve McKnight would probably say “If you wouldn’t buy it today at the price it is, why are you keeping it?” … or words to that effect.

I don’t know your numbers but you will….. Consider :-

1. What it will cost you per year to hold it currently (even as its value diminishes too?) – isn’t this good money going after…[Read more]

Hi Terry,

Thanks so much for that link to the legislation. Personally, I found that MUCH easier to read than those earlier examples. It was clear, unequivocal, and easy to understand. I think I will store that link as a Favorite !!

The only area that is less clear (for me) is 3A where they refer to other “sections”…

Benny

Hi Terry,

Thanks so much for that link to the legislation. Personally, I found that MUCH easier to read than those earlier examples. They were clear, unequivocal, and easy to understand. I think I will store that link as a Favorite !!

The only area that is less clear (for me) is 3A where they refer to other “sections”…

Benny

The Tax Deduction doesn’t happen in Australia, but happens in UK or NZ, depending on the choice of investment.

Cool – thanks for the clarification,

Benny

Hi James,

This is assuming the property is your MPR (as is assumed in brackets at the end of my quote).

You are right! I missed it, as I was unaware of the acronym “MPR”. I know the term as PPOR – Principal Place of Residence? Was the change to MPR (Main Primary Residence) a recent change?

And isn’t “main primary” tautological? I wonder…[Read more]

Hi James,

This is assuming the property is your MPR (as is assumed in brackets at the end of my quote).

You are right! I missed it, as I was unaware of the acronym “MPR”. I know the term as PPOR – Principal Place of Residence? Was the change to MPR (Main Primary Residence) a recent change?

And isn’t “main primary” tautological? I…[Read more]

Hi Propertyboy,
The reason Rami didn’t get a new 6-year exemption is that he DIDN’T move back into the place. The words quoted show that:-

Rami was posted by his employer from Brisbane to Melbourne for three years and settled a contract to buy a townhouse in Melbourne. He did not return to his Sydney apartment at this time.

Had he returned to…[Read more]

Hi Steven,
Totally right re “Cashflow being more important than Growth”. The whole scenario has been pretty well presented, so well done. There is one area I think needs a little more focus though, or maybe I am missing something:-

b) Next, comes Capital Gain Tax, so bye bye 25% of my profit.
c) Finally, the remaining profit is treated as my…

[Read more]

Hi Steven,
Totally right re “Cashflow being more important than Growth”. The whole scenario has been pretty well presented, so well done. There is one area I think needs a little more focus though, or maybe I am missing something:-

b) Next, comes Capital Gain Tax, so bye bye 25% of my profit.
c) Finally, the remaining profit is treated as my…

[Read more]

Hi James,

The only caveat being you cannot live in the property and rent out part of the property (ie a room), you must live in it solely.

Isn’t there another caveat – that they don’t buy another PPOR (i.e. they rent elsewhere) while their PPOR is rented out??

Benny