Originally posted by Scremin:
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SHe told me about it and said for me to force the issue as their wording of “Professionals” didn’t include nurses or teachers. Funnily enough, it includes university lecturers but not normal teachers… Ho hum…[confused2]

Hi Scremin,

The cynic in me thinks ‘use whatever reason you can to put customer…[Read more]

Hi Want2brich,

Given you are already finding the place too big I would consider selling up and using the profits to pay out the mortgage and buy the house you have seen in the area.

I suggest such a course of action as your existing property (and the new one too)is capital gains tax free and you’ll end up with no non-deductible debt.

Based on…[Read more]

Hi Scott,

Sincerely hope you get it up and running – I would expect that it will be a challenging exercise due to the ‘complexities’ associated with CGT.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Originally posted by The Adviser:

Qu.3) Is there a minimum time that I can change my mind, move in as my PPOR and claim the FHOG? this one, I’ll make a few phone calls with.

You have 364 days to decide to move in so you are eligible for the FHOG. As Derek said, you need to stay in it for 6 consecutive months.

Hi Rob,

Thanks for the…[Read more]

Hi Tikki,

If the property is vacant for a calendar year then clearly it wasn’t available for rent. I am sure the ‘suits’ from the ATO would clearly see that this wasn’t a typical rental property.

If however you were talking about the remainder of this financial year (3 weeks) you may have a case provided you had evidence of advertising,…[Read more]

Quote:
Originally posted by jjjkumar:
Derek, Thanks for your response.
How can I find out whether to choose a particular suburb to invest or to live in ? Basic aim is to get good appreciation in 5 or 6 years time. Can you tell me if there is any web page or magazines that gives these details ?

Quote:

Hi Joe,

Unfortunately not one of us has a…[Read more]

Hi Nicole,

If you are chasing cashflow positive property as per Steve’s book definitions you’ll probably find that they are getting further and further away from you.

If you still want to pursue this line of investment you’ll probably find that an accountant in Melbourne (see Dale at http://www.gatherumgoss.com) and mortgage broker (some here on the…[Read more]

Hi Dragonlady,

No – consult with your accountant before the sale happens. They are the expert and as such they will be able to provide you with a definitive answer and possibly, depdningupon circumstances, may even be able to make a couple of suggestions that may save you money.

Under no circumstaces should you make decisions based on what…[Read more]

Hi Dom,

According to my calculation the difference is ‘only’ $10K total (Mr and Mrs) over the three years based on some very rough estimations.

As I indicated in the long comment this saving would need to be balanced out against the potential savings in non-deductible debt interest if you were to sell all properties in one year. Definitely time…[Read more]

Originally posted by chrisrenee:

We have two property’s.

One which we lived in for 3.5 yrs but now has been rented out for 6 months (in my husbands name). We have another property which we have lived in since renting out our previous property (in joint names).

The second house will be CG free as it is your home.

The first property will have…[Read more]

Originally posted by chrisrenee:
Sorry you’ve lost me a bit. PPOR what does that mean???

PPOR is the ATO’s fancy description for your home.

I have purchased another property of which I am living in at the moment.

If you are living in this property it will be exempt from CGT as it qualifies as your PPOR.

Mine and my husbands combined income is…[Read more]

Hi Chris,

Generally speaking if this property was your only PPOR you do not pay any CGT.

A couple of complications arise if you are selling and move into another property (6 month dual PPOR applies) or you move out and do not buy another property (6 year exemption from CG rule applies).

If however you are liable for CG then the gain is…[Read more]

Hi Carly Boy,

Any property with a construction commencement date prior to 18th July 1985 does not qualify for building depreciation unless some structural renovations have been undertaken in the interim.

You have overlooked a key piece of information – the purchase date as this helps determine start up value for plant and equipment items.

Plant…[Read more]

Hi Gail,

There are variations in state standard practices so it may be helpful if you identified the state in which you are buying.

For example all of my purchases in WA have been completed using a conveyancer – all straightforward and no problems whatsoever.

My Queensland purchase was with a solicitor who specialises in property settlements…[Read more]

Hi Dragonlady,

I must say I am not an accountant and as such it would be worthwhile running the scenario outlined past your accountant too.

As you have exceeded the 6 month dual PPOR clause one of the properties is going to have a 7 months CG liability – in the grand scheme of things this is really quite negligible and as such I wouldn’t be…[Read more]

Hi James,

Only speaking based on my experience – was contacted by a long serving moderator (our paths had crossed a couple of years ago on other forums) and asked if I wanted to assist here. Since then I have been contacted by one the site employees (is that the right description) and invited to act in the role of moderator. Apparently a couple…[Read more]

Hi Gataga,

Thanks for that – all I can offer is make sure you are entering this arrangement with all factors considered. Have you, your mother and brother sat down and explored all of the ‘what ifs’, ‘buts’ and ‘maybes’ about a joint purchase.

If there is a huge discrepancy between purposes for buying thisproperty and what your individual moves…[Read more]

Hi folks,

Thanks for the kind words – just doing what I enjoy – talking property and if I can give something back then I have done my job.

PS Kay – Brent and Steve are still working out where to put me and have realised there is a lot of hot air inside me (thanks Simon) – at the moment I am checking Steve’s Tip For the Day to ensure it complies…[Read more]

Hi Brahms,

MI is considered a borrowing cost and as such is claimable over five years or the life of the loan whichever is the shorter period.

Edit insertion ‘They (borrowing costs) also include other costs that the lender requires you to incur as a condition of them lending you the money for the property – such as the costs of obtaining a…[Read more]

Hi Kumar,

There is no definitive answer as each individual’s circumstances are different – the correct course of action for you will be dependent on your situation and what it is you are trying to achieve in the short and long term.

Some things to consider are family situation, work prospects, location, your investment preference/goal, years to…[Read more]