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]

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 ony those two choices existed. Of course, there would be other options, and this would be the right time to explore them.

What I am thinking here is…[Read more]

Well Frank, now I see where you are going – but again, comparing an “out West” house with an “inner West” duplex introduces so many variables. Location being key. The suburb itself could well add value to one, and not to the other. A different Council for one might give one property another advantage too.

So many variables. But OK, since “I…[Read more]

Hi Frank,
I would tend to think that, all things being equal, the ratio between the two would remain similar. At the moment it is 3:4 based on the prices you quoted (900/1200). I expect that land size for the duplex half would likely be smaller than the house for $1.2m – perhaps in the same ratio (or similar).

That would mean that, if the…[Read more]

Hi Frank,
I would tend to think that, all things being equal, the ration between the two would remain similar. At the moment it is 3:4 based on the prices you quoted (900/1200). I expect that land size for the duplex half would likely be smaller than the house for $1.2m – perhaps in the same ratio (or similar).

That would mean that, if the…[Read more]

Hi Ms Trump,
Your first post indicated that your family member didn’t build – just had a developer divvy up the blocks, pay all fees for subdivision, and take “one or two lots for free” as payment. Your situation sounds like it could be similar, but that you might want to build as well. Would you perhaps clarify a few more things for us?

So…

[Read more]

Hi Lewis,

Sorry to hear what has happened, and I’m glad you chose to post to ask “What next?”

Terryw has come up with the right answer – you need an adviser on your side who KNOWS the law. Only then you will learn what all of your options are, and can discuss all of the other “What ifs” with them too. Even if it costs a bit, it seems to me…[Read more]

Hi Simon,

Am I correct in guessing you are suggesting I would run into further trouble if I put the IO funds in the offset against my PPOR?

That is a good thought, and that might be quite right – but really, it was an earlier comment from Terryw that I wanted him to clarify (and this goes back some time too – but could also be related to your…[Read more]

Hi Simon,

Am I correct in guessing you are suggesting I would run into further trouble if I put the IO funds in the offset against my PPOR?

That is a good thought, and that might be quite right – but really, it was an earlier comment from Terryw that I wanted him to clarify (and this goes back some time too – but could also be related to your…[Read more]

Hi Terry,
Your words here reminded me of something that you have warned of in the past:-

Ignore what the bank is suggesting they will make things worse.
You need to pay off the loan and reborrow.

I think the words went something like “Don’t take funds out of an Offset account to become a Deposit on an IP. Instead, use those Offset funds to…[Read more]

Hi Merv,
I think it is always good to learn – going to seminars is one way to do this, along with books, structured courses, meeting with other investors, etc. One piece of useful advice is to always consider “what is in it for them?” when attending seminars. Like, are they wanting you to buy a piece of real estate from them? If so, how…[Read more]

Hi Simon,

Sheesh, some Banks are good for nothing !!

It has just all come through & it has landed in my variable PPOR home loan account.

So, have they (or you) OPENED an Offset Account against any Mortgage account? Or is there still NO Offset Account at all? That is so slack – but can be quite typical of some banks (have had quite some…[Read more]

Thank you Brett Clarke for providing us for your very informative article:-
https://www.propertyinvesting.com/the-12-most-common-pitfalls-when-insuring-your-rental-property/

This whole thread has been an eye-opener to me, and I suspect to most other members too. Now having your article that highlights all of those “gotchas” is worth its…[Read more]

One of our members with vast experience in the world of Insurance shares his thoughts and warnings. Some of the comments that Brett shares will have you aghast (for mine, check out his point 11 – it had me scratching my head).

https://www.propertyinvesting.com/the-12-most-common-pitfalls-when-insuring-your-rental-property/

This is required…[Read more]

One of our members with vast experience in the world of Insurance shares his thoughts and warnings. Some of the comments that Brett shares will have you aghast (for mine, check out his point 11 – it had me scratching my head).

https://www.propertyinvesting.com/the-12-most-common-pitfalls-when-insuring-your-rental-property/

This is required…[Read more]

One of our readers with vast experience in the world of Insurance shares his thoughts and warnings. Some of the comments that Brett shares will have you aghast (for mine, check out his point 11 – it had me scratching my head).

https://www.propertyinvesting.com/the-12-most-common-pitfalls-when-insuring-your-rental-property/

This is required…[Read more]