Your ‘marginal tax rate’ is the rate of tax you pay on your personal income.

So if you make a cap gain of $60k, sell after 5 years; your cap gain liability is $30k.

You pay tax on that at your marginal rate. If you pay 30% of your income to tax, then your tax bill for the cap gain will be $10k.

On another issue; as you are buying a brad new…[Read more]

Quite right Dr.X;

Financially rich to me is the freedom to choose what you do with your time and your money.

I have a very good friend who makes an extremely good income, but his money habits have locked him into working long hours for the rest of his life. He is not financially free and will never be able to retire early unless he takes a…[Read more]

I am not 100% sure about this, but I believe if you buy a property and rent it out immediately rather than move in yourself, then move in later on, you are liable for CGT as you have used it as an I.P and not a PPoR.

The CGT rate is: tax on 100% of the cap gain if you sell within 12 months, or 50% of the cap gain if you sell after 12…[Read more]

I don’t know about the others, but no agent property isn’t free.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by browny76:
Gday again. Good stuff Nicko, thanks. I enjoy the opportunity to divulge in these matters with PEOPLE IN THE KNOW, & is always interesting reading the different stories & situations people find themselves in. Fixing houses Im good at, conversing on the computer not so good! Reckon I’ll leave it to the EXPERTS as it…[Read more]

Originally posted by browny76:
Gday Re Off Topic Marc.
Get off your computer mate & get out in the real world! The way in which we have made such profit is the original purchase price of the property being below the market value to begin with. Secondly we have aquired the skills to perform said tasks through perserverance, learning & persistance.…[Read more]

Hi Steve,

Hobart is a gorgeous, historic smaller city in the south of Tasmania.

Houses are historically cheap and rents returns good.

There was a boom in r/e prices there about 3 years ago, fuelled by investors looking for better rent returns, but this has since died and prices are more normal again.

The population movement is at best…[Read more]

To buy the waterview house and keep the current PPoR you would need to either have cash for the deposit, or use “available” equity from the PPoR as a deposit. Either way, you will have a large, non-tax deductible mortgage on it.

If you move out of your PPoR and rent it out the holding costs and interest on the loan become tax deductible.

But the…[Read more]

marry Paris Hilton or James Packer

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Hey Sanjiv,
you changed your name to “PropertyPower” – what’s happening there. Sounds like a new business name?

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by browny76:
Gday, My Partner & I recently bought a property for $79,000. we borrowed $100,000 spent approx 10,000 which included a very small wage for our labour. This amount paid for paint interior & exterior, tiles for bathroom & kitchen, new tapware & also new carpet throughout. When the reno is complete we hope to have…[Read more]

I agree with Sanjiv and Terry.

Many people advocate never paying down the loan on I.P’s because of the tax deduction on the interest.

At the end of the day, the less you owe against what you’re worth is a good thing.

In my opinion, once your personal debt has been paid out, then you start on any other debt you have (investment).

This increases…[Read more]

Allow about 20% of the rent to be eaten in costs.

This is usually an over-estimation – no nasty surprises.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Be careful about building more than 1 dwelling on the land – all land has a zoning which defines exactly what you can and can’t do with it. The local council be able to tell you the zoning.

You may be able to change the zoning, but don’t count on it.

Also, if you really wan that much land, try to incorporate pleasure and wealth building; try to…[Read more]

Sorry to interupt guys, but getting back to the education thing….

I am a secondary teacher, and the school I currently teach at offers a subject called Personal Finance. It is a compulsory subject for Year 10 students.

After reading this thread I talked to the teacher about the content that is taught. He said that mainly they teach…[Read more]

Quote:
Originally posted by daniellee:
Hi,

Foudation: Thanks for your insight. Most interesting as usual. Personally, I believe that with the increasing debt domestically, something has got to give. Something like what is happening (or going to happen in the US, maybe? LA Aussie: Any comments?).

In the end, best to do the due diligence (as…[Read more]

The order of those questions in the last post was wrong 65ens – you should have put the “havin’ a beer and relaxing” question first. That’s the priority!

Anyway, the options are many, but my 2c worth;

If you are planning to stay in the PPoR, I think it’s best to reduce that loan as fast as possible because the interest is not tax…[Read more]

renos are great fun, but hard work.

Allow more of everything to get the job done – time, money.

There is a thread somewhere on this forum about cashflow capital. Be careful, research the area they tell you about yourself.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by gmh454:
Foundation… the ABC mid day current affairs just did a piece on the impact of the problems in the US mortage market, and coined the phrase mortgage lead discussion.

Does not sound good, guessing it may be a sign of things to come.

If only they had our optomism and just kept spending….

The average punter is…[Read more]

A good place to look is at suburbs along/near the new Eastlink Freeway extension down to Frankston.

Frankston has been mentioned a fair amount lately on this forum, but there are several more suburbs further north that previously were too far from the city, and not near freeways that soon will be. they are still affordable,but the commute time…[Read more]