Haven’t been unable to recover the news link.

It just means that people who recently bought into the area, they are more susceptible to mortgage default (ie, cannot afford their mortgages, and likely foreclosure, when the bank steps in and sell the property from under them).
I’m assuming they are basing this on the number of people under mortgage…[Read more]

Bluezinc,

Interesting topic.
First, I think you should present your arguments / research that led you to believe we’re heading towards a great depression, so we have an opportunity to discount them. If you are following arguments similar to Dr Steven Keen or Mr Harry Dent Jr., there are good news and bad news. But you can enlighten us with your…[Read more]

Rhys_Roberts,

Caulfield North and Newport are in very different market segments.
The median price for CN is around 1.3mil, whereas Newport is around 530K.

Personally, I think Newport, Spotswood, seddon and Yarraville have great potential.
I prefer Yaraville and Seddon over Newport with similar prices.
Newport is affordable and relatively close…[Read more]

Pully,

Do you mind sharing your scenario and the ATO judgement? (or just point us to your PR in the register). Thanks

Matt,
The ATO has strictly forbidden people in the same immediate family (including spouse and dependent kids) to own multiple PPORs even with different name on the property. For example, imagine a family of 5 owning 2 main…[Read more]

Matt,

I’m assuming you are referring to the Arms Length rule SMSF needs to follow. (ie. Investments by a SMSF must be made and kept on an arm’s length basis. This means the transactions must be on a full commercial basis)?

No, it does not apply to family trust.

Cheers,
Kenny

Thanks for that Matt.

Again, make sure you get that in writing.

Thanks for the feedback Matt! Appreciate the confirmation.
However, I have to say I was a bit surprised by ATO’s response?!

I guess it depends on the timing of when your partner legally became your wife (de facto law applies). If it is just recent, then ATO’s response would be correct.
The ATO treats a couple as one unit for many of their CGT…[Read more]

I shall point you to the following sites:

CGT implication if you own more than 1 property:
http://www.ato.gov.au/individuals/content.asp?doc=/content/63517.htm&pc=001/002/026/016/003&mnu=&mfp=&st=&cy=1

When your spouse or children live in a different home to you:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36893.htm

Hope it…[Read more]

Gats,

VicSuper offers income protection insurance.
http://www.vicsuper.com.au/www/html/60-insurance.asp

Cheers,
Kenny

Crownofgold,

This is more a legal matter, so I am not qualified to respond.
However, I have been in the similar situation where the REA will not take any offer until the sec 32 is ready. This is general practise in Melbourne. But a heads of agreement written up by a solicitor or even yourself (ie your offer to buy the house subject to sec 32) is…[Read more]

Hi Gats,

Karen is correct.
You should check your superannuation statement to see if you already have adequate income protection. It doesn’t need to be a SMSF, it’s a general option provided by most superannuation funds. If you are unsure, check with your accountant.

Note also, it maybe tax effective to pay for income protection insurance premium…[Read more]

Hi Crownofgold,

Congratulations on the find! It’s hard to find something you absolutely love, and still be able to afford it these days!
The issues with loving the house, is the emotional attachment when you get into auction, but I’m sure you are aware of that.

Personally, I find auction only benefits the vendor in this current climate…[Read more]

Lusty Investment wrote:
Can anyone recommend any good reports (preferably free) on Aust demographics – i.e current and forecast population trends etc?Are any of Bernard Salt's reports good / value for money?Thanks!

Hi Erik,
Great site! Thanks for sharing that!

I take it that it’s still under…[Read more]

Great Tips David!

Thank you!
Kenny

HI Ken,Interesting concept.Do you mind filling in one as a sample, including your calculations, so we can all follow the same methodology?I would be interested to know the state and suburb as well. Cheers,Kenny

j900, I agree, Shane should be in a position to purchase multiple properties and still be able to get them cash neutral (or even cash positive) with good capital growth and rental. Seeing that he is a middle income earner, he can look for cash positive to supplement his income. His equity and lump sum can be better used. As Matt (mxd)…[Read more]

j900,

Fundamentally, there is no major flaw in logic in what you are recommending.
However, keep in mind that there are people in different stages in their lives, and risk may not be a very attractive option. It will be remiss of us to assume their taste and preference.
Having said that, personally, I would probably invest in multiple asset…[Read more]

Les Paul,

This will depend on your circumstance and your objectives.
If you are looking for income tax deduction because you are a high income earner, then you would seek many negative gearing properties, where the income is lower than expenses. Buying multiple properties will give you more opportunities to do that.
Question is, should tax…[Read more]

SC,
Just a point of clairifcation. There are several types of ATO rulings, but mainly Public and Private.
You can only rely on the Public Rulings (not other people’s Private Rulings or Product Rulings). Public Rulings come in the form of Taxation Rulings and Taxation Determinations. Public Rulings like a the one attached above are binding to the…[Read more]

StumpCam,

It sounds like the ATO has made an allowance for investors to refinance their mixed purpose account to separate income producing portion and private portion. (note that this only applies if you refinance the entire subaccount) If I were you, I would show the Tax Ruling to your accountant and get him to investigate further (and possibly…[Read more]