I agree totally with your results Terry. It made me sit up and take notice !!

Did you try doing the 5% one? Even that tiny amount made a HUGE difference to the take-home amount.

Benny

Hi Simon,
Note I am not an accountant or similar – so this are what I “think” is the situation:-

If I purchase a ip & Reno am I up for cgt from day dot

No CGT until you sell – but (what I think you are meaning) are you wondering what Cost Base that CGT is calculated from? As I understand it, the Cost Base is calculated from the Purchase…[Read more]

Hi Bish,
Terrific title – seismic it would be, indeed – but when exactly? That’s the question….

Good question Nigel but that’s not what I think, that’s what the Labor policy clearly states. How they do that – I’m not sure but I’m assuming they know a bit about when they can and can’t make the policy effective from.

Labor aren’t in power ye…[Read more]

Hi Bish,
Thanks for the news. Certainly would have an impact, eh – but when exactly? That’s the question….

Good question Nigel but that’s not what I think, that’s what the Labor policy clearly states. How they do that – I’m not sure but I’m assuming they know a bit about when they can and can’t make the policy effective from.

Labor aren’…[Read more]

Hi Simon,

It depends on where you are going with this. I had an occasion to do similar and I chose the slider, as the house layout and location suited a possible “home office” – but could also be another bedroom, giving me, or the tenant, choice. The room created behind this front room became a study (but could also have been a “backroom”…[Read more]

Hi DM,

Sounds like you are doing pretty good. And good on you for pointing your friend toward what could be a better direction for them. The possibilities re going for IP’s first always appealed to me (after crunching a bunch of numbers), but as I already owned a PPOR, we just went from where we were.

But, if these friends of yours have an…[Read more]

Hi Anna,
I can’t point you toward any specific company – but I wanted to share some very useful words that came to us recently from someone who has years of experience in the Insurance Industry. You will hear that from his words and the ideas he has presented here for…[Read more]

Hi Zehra,

would you say more argument to fix tho ?

That is quite dependent on your circumstances – financially it may be beneficial right now, but then it “locks you up” in a Fixed Loan, and the costs of breaking them can be HUGE !!

Like, don’t go Fixing a loan if you have any plans to sell within that 3 year period, or if you think you…[Read more]

Hi Rickey,

I would like to find out if I am also exempted for this newly built home (as I read somewhere that the overlapping time of six months for 2 PPOR can be applicable) Thanks again.

Ah, there you go – that is the real question – and that is one that I will leave to Terry.

First, here’s a few “reasonable man” thoughts thrown in that…[Read more]

Hi Rickey,
You wouldn’t be assessed for CGT on the new house until such times as you were about to sell it, and any CG Tax at that time would depend on “what else had happened between now and then”.

What are your plans for the OLD home though? Are you planning to sell it? It sounds like it might be CGT exempt based on your words – but I am…[Read more]

Hi Jaxon,
An interesting take on the question. There I was, about to say to myself “Jaxon just doesn’t understand…”

…………. and then it hit me – you are right Jaxon – we really don’t know WHAT might happen in the next 10 years.

Thinking in terms of a Govt that wants to squeeze more people onto smaller blocks of land (maximise…[Read more]

Hi Jaxon,
An interesting take on the question. There I was, about to say to myself “Jaxon doesn’t understand…” and then it hit me – you are right – we really don’t know WHAT might happen in the next 10 years.

Thinking in terms of a Govt that wants to squeeze more people onto smaller blocks of land, perhaps laws might be passed that makes…[Read more]

Hi Jaxon,
An interesting take on the question. There I was, about to say to myself “Jaxon doesn’t understand…” and then it hit me – you are right – we really don’t know WHAT might happen in the next 10 years.

Thinking in terms of a Govt that wants to squeeze more people onto smaller blocks of land, perhaps laws might be passed that makes…[Read more]

Hi Luke,

Am I correct in thinking that I should use the money to pay it off the land as it will be our primary residence as the unit will become tax deductable.

Sounds about right to me, if those two choices were all you had. But of course, there would be other options, and this would be the right time to explore them.

What I am thinking…[Read more]