Hi Tiger

You’ve hit on a point that a lot of people struggle to understand. Indeed equity is not defined as your right to a cash donation from the bank just because your house went up in value, and it also doesn’t guarantee the bank will lend against your equity. There is indeed such a thing as “more equity than you can use”. In these…[Read more]

Hi Steve

While your intention is to renovate and sell, I wouldn’t have complete disregard for capital growth, because if after your renovation it turns out that selling is not viable to due insufficient profit or lack of buyers, you’ll have to go to plan B which is to hang onto it and rent it out. You want it to be a viable plan B if it comes…[Read more]

Can’t say it sounds enticing, and the “discount” you would be cancelled out by the lost stamp duty money buying into it and paying an agent to sell it if you wanted to offload it…

Hi TM

Nobody on the forum can “advise” you. Only appropriately qualified professionals that you have commissioned for the task with appropriate payment can do so.

A forum is a place to share a series of facts and stories.

I’ll try and really simplify the SMSF trustee thing:

A Corporate Trustee is essentially a PTY LTD that is set up to be…[Read more]

Ah, yup, Doctor. Highly litigious profession. Asset protection is certainly relevant. Have you looked into a SMSF (Self Managed Super Fund) using a corporate trustee?

Catalyst has a point (though Mark has pointed to both low yield and low growth). But in fairness, what is the definition of “low”? Mark can you share the numbers with us? ie value of property, its growth over say 3yrs, and how much it would rent for?

Hi Lloyd

I agree and disagree in equal portions. I agree that many folks get obsessed with asset protection when they are folks highly unlikely to “need” to protect their assets anyway. Too often the words asset protection are thrown around to frighten people who don’t understand them into believing they cannot step outside their front door…[Read more]

Hi Mark

Welcome :)

Low rental yield and a chance of slight capital gains doesn’t sound enticing to me. What is the definition of “low rental yield” and “slight capital gain” ?

On one hand $40k may not sound like much in the grand scheme of things, but I’m pegging it’ll take you ages to save that amount, so it would be a great shame if your…[Read more]

Hi Mark

Welcome :)

Low rental yield and a chance of slight capital gains doesn’t sound enticing to me. What is the definition of “low rental yield” and “slight capital gain” ?

One one hand $40k may not sound like much in the grand scheme of things, but I’m pegging it’ll take you ages to save that amount, so it would be a great shame if your…[Read more]

Low rental yield and a chance of slight capital gains doesn’t sound enticing to me. What is the definition of “low rental yield” and “slight capital gain” ?

One one hand $40k may not sound like much in the grand scheme of things, but I’m pegging it’ll take you ages to save that amount, so it would be a great shame if your $40k didn’t start…[Read more]

Oh wow ! It’s finally all done and dusted !! Congratulations :)

I’m glad that we’ve been able to point out the tax advantages as Terry has described above. I think if you and your mum sat down and worked out the CGT and stamp duty that would be payble you’d get quite a shock.

$10 per square foot

Hi propman

While you mother might prefer to transfer the property to you now, would she have the same feelings about it if she realized the high cost of stamp duty (to you), and capital gains tax implications (to her) in doing so ?

Just because someone “can” do something doesn’t necessarily mean they “should”.

Hi Argyle

How many $$ does your SMSF have in its bank account that could be utilized for the purchase of property?

The good folks at Home Stagers do precisely these sorts of things (they offer home staging but also renovation management). Give Dianna a shout and discuss your needs. She does a great job and is very strict with keeping the objective focussed on “ensuring the renovation increases the value of your property and/or rental return”…[Read more]

The boys are bang on with their comments.

Also when you get up to the part that you actually NEED an accountant, they do not need to be located near you. All can be done via email/phone/skype. So you need one that is a suitable balance of good in the field you need them to be, and appropriately priced. They can be located anywhere in Australia.

Slightly messy. To minimise CGT you would have to “give” your land to the developer before construction, and would then have little to no certainty you’d get a unit in return. Be very careful and talk to a solicitor first.

Hi Reiya

Welcome :)

Option 2 becomes a hassle if you have children because there is more “stuff” to move, and if you cannot get a rental in the postcode catchment of their school, then they have to change schools.

You don’t necessarily need a broker in Perth. You need a good broker. Most good ones do their work via email/phone/skype these…[Read more]

Well there you go – Terry’s the man in the know on the topic :)