http://www.onthehouse.com.au/
http://www.realestate.com.au/sold
http://www.domain.com.au/?mode=sold
http://www.domain.com.au/Investors

Obviously paid data will give you more comprehensive information.

Best of luck
Kenny

Kennyjaiz wrote:
The "love and affection transfer" portion is really to minimise the Stamp Duty payable, when changing the title deed. If the point of the exercise is to maximise the tax deductibility in the future, then it will depend on the partner/wife's ability to get a loan to refinance the property. Since we are talking…[Read more]

Great info btw. Thanks.

Slight clarification.
Disposal of any CGT assets, is considered a CGT event.
However, despite the CGT event, main residences are exempted from Capital Gains Tax.

I’m a bit confused re your comment about moving out of a main residence to renovate…
What do you mean?
Do you have any literature on this?

Thanks
Kenny

I don’t think I will need to get into any technical info of tax as other people on the forum has done a fantastic job. I understand you are frustrated by the fact that your potential profit maybe reduced by tax implications. However, there is no need to convince you that people are happy to pay taxes – it is a necessarily evil and an…[Read more]

The 6 year rule is also known as the Absence Rule under ITAA s118-145.
If an individual is absent from their main residence they can still treat it as their main residence where:
1, it is used for an income producing purpose – up to 6 years; and
2, it is not used for that purpose – indefinitely.

If you are not absent from the property…[Read more]

Agree with crj.

If you subdivide part off to sell, you may find this helpful:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36907.htm

Cheers,
Kenny

With situations like that, it is important to do your research, and document all the communication with your landlord. As you have already done.
Also, it may be beneficial to document all the improvements you have done to the property.
You will probably find the authorities (Fair Trading and Consumers affair Vic) sympathetic towards your…[Read more]

If you choose to split the loan into two, the investment portion can include any purchasing cost incurred to acquire the income-generating IP. Typical purchasing cost includes borrowing costs (LMI, loan application fee, establishment fee, stamp duty on mortgage etc), conveyancing costs, stamp duty on the property transfer, etc. In this…[Read more]

This site gives you up to 36 months:
http://www.investsmart.com.au/property/default.asp?s_cid=domain
It’s just the “Invest” tab on the domain.com.au site.

I find there’s a time lag of the data presented on this site though, so be aware when using this site.

Cheers,
Kenny

Before you go through the potentially costly engagement with a REA, you can probably try and gauge the market demand by speaking to Real estate agents as a buyer. (obviously if you say you are a seller, they will hype it up for you). As well as other investors. Just to get a sense of the market direction.

You can also check recent…[Read more]

I agree with S/C.

But to answer your questions:
1, Yes. As property price goes up, you would have built up equity in you home. You can ask your existing bank for an additional loan or go to another bank for a refinance. (There will be costs involved of course) They will do a revaluation of the property to determine how much the…[Read more]

To be honest, I just copied and pasted our old post

You may find the following link useful:
Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20002/NAT/ATO'&PiT=99991231235958

Essentially, you have a mixed purpose redraw facility (private portion and investment portion).…[Read more]

I agree with Richard and Terry. (and I have rarely seen them offering anything but useful contributions)

While awsydney’s comments may work on an individual basis, it may not work for everyone.
Accountants are typically not authorised to offer any financial planning advice unless they are registered and comply with RG146. This will apply…[Read more]

Steve’s strategy is primarily +ve cash flow based, which may not be what you are after, if your objective is tax minimisation.
However Steve can give you insights and idea that will be beneficial regardless of your strategy.

your financial planner should be able to come up with a plan that suits your personal circumstance.
Besides…[Read more]

I think a lot of the bears in the property market have something to be concerned about. There is a high level of national debt in Australian and housing affordibility is sliding with artificially inflated price by government grants, which brought forward a lot of first home buyer’s decision to get into the market. Their research are…[Read more]

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]

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]

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]

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]

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

Again, make sure you get that in writing.

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]

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]

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

Cheers,
Kenny

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]

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]

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]

Hi Erik,
Great site! Thanks for sharing that!

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

Thank you!
Kenny

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]

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]

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]

Found this link:
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20002/NAT/ATO'&PiT=99991231235958

“21. Where a taxpayer makes repayments over and above the required minimum payment and the line of credit facility comprises one mixed purpose sub-account only, the taxpayer cannot choose to notionally allocate the repayments to a…[Read more]

Economics is a social science and no one can predict to a certainty of what is going to happen in 3 months time let alone 12 months.
It will be difficult to predict at this point in time, as there are several factors in play.
1, FHO Boost – will reduce/removed by the end of the year, reducing artificial demand
2, Demand of resource export -…[Read more]

Local councils use different way of estimating land value. My experience is that local council tend to undervalue properties (ULV and Capital improved value) for rate calculation purposes. I won’t rely too much on these figures, especially when estimating the “value of the building”.
The important thing is to determine the condition of…[Read more]

I think you will need to disclose a little bit more information in order to assist.
I don’t think it’s impossible to get into the property market with savings of $10K.
With the federal first home owners grant + federal first home owner boost + (if you are in victoria) state first home owner bonus + state regional bonus, eligible…[Read more]

Thanks for that! Glad to know I’ve helped.

There are pros and cons with different structure when it comes to purchasing property investment, understanding the application and advantages will serve you well in your journey of property investment!

Personally, I have stayed away from serviced apartment and student accommodation myself,…[Read more]

1, Yes, you will only have to quote your ABN when you purchase a commercial property. It is not a necessity to have ABN or GST for residential IP. A simpler way to think about it – if your tenant is a business, you are likely to require ABN. (There are exceptions)

2, No, GST payable is dependent on your vendor, not you (ie, if your Vendor…[Read more]