quote:So it looks like the couple actualy made a loss cause the stamp duty and CGT is 5% of the sale price Isnt it?? (which is more than the profit they made)

Hi Glenn

The CGT is calculated based on selling price – purchase price (+ cost of renovations). It is then added to your taxable income. Depending on how long you have held it affects…[Read more]

Hey Chris and welcome.

I would say that the 11 ss is not unique to Aust. It is used purely as a filtering tool. If you have ever looked at anything Dolf de Roos does, he talks about looking at 100, getting interestd in 10, serious about 3, and maybe buying 1.

The 11 ss can help you cut out those 90 odd you’re not interested in. If somewhere…[Read more]

Hey Bear

I have mentioned this in other posts, but will put it here again. You can rent out your original house for up to 6 years and then sell with no CGT. Or, you could move back in after the 6 years, and then out again etc. with no CGT.

However, you could not then claim your ‘new’ house as your PPOR, so there would be CGT on that.

You…[Read more]

Amit, it’s your site!! No Paul, I think I’ll let Huey tell me if you’re a good catch first[][]

I still can’t get your website to work. I did with acnielsen one, but I can’t remember the address. Get the other one to work for me and I’ll think about it.[]

Cheers
Mel

Absolutely. Or to start, you could read Trust Magic by Dale Gatherum-Goss, or some of the N.E. Renton books on Family Trusts, Wills & Estate Planning etc. etc.

Or you could go to see Dale Gatherum-Goss. His website has been posted a few times – I think it’s http://www.gatherumgoss.com

Cheers
Mel

hahahahahahahahahahahahahaha [][][][] hahahahahahahahahahahahahahaha[]

Bill, if LuckyPhil has that much control over flights he should be a good one to know – I’m talking about discounts and even better – freeeeebies!!!

Huey, I’ll teach you to drive no problems.

Cheers
Mel

Kobell

It is a good way of buying any property that you plan to onsell rather than settle on. You get to control it without owning it. It’s sort of like the yanks ‘and/or assigns’.

How it works is like this:

There is a standard contract of sale, but this is not signed, therefore not exchanged, and no stamp duty etc. Attached to this is the…[Read more]

‘What does this button do?…’

‘Hey y’all, check this out!’

Cheers
Mel

Evil Arty and Poltergeist.[][]

Moderators – too much power has been given to the wrong people.[}][][:0)]

Cheers
Mel

It’s interesting that the person who ‘owns’ the house has the deed to it. I don’t think our banks will ever relinquinsh their hold on the title!! This would make this scenario impossible here in Aust.

Impossible? Nothing ever is, and I’m sure someone could work out some way to do it if they really wanted to.

Cheers
Mel

No Poltergeist, you’ve got it wrong. Imps are cute little things!! Sort of like elves.

Cheers
Mel

Kellyville, if you talk to your accountant re structuring, you could probably do something like set up a trust to buy the properties, and have the income directed to your wife as a beneficiary.

Cheers
Mel

Simon, you can actually purchase another home to live in. You just have to decide which one you class as your PPOR and therefore CGT exempt. I’ve stated in another posting that you do not even have to make this decision until you sell, and you can work it out based on which option is best then!![]

Cheers
Mel

Glenn

As to your first question/initial post, I think there are many places where unrenovated houses are going at or above the price of renovated houses as there are so many people out there now thanks to all the TV shows. I think the answer is to keep looking until you find a property that is in need of renovation, and is priced lower than all…[Read more]

Hi Karl

A good indication of whether or not a property will be positiviely geared is to use the 11 Second Solution. Rent/2 * 1000.

For more in depth analysis, you need to look at borrowings/repayments, rates, maintenance, prop mgr fees etc. Add them all up, subtract from rent. If leftover is positive, you are positively geared, if not, you…[Read more]

I think it’s Poltergeists shorthand for important. Although he himself sounds like a little imp[]

Cheers
Mel

Hey guys

I just thought that I would let you all know – especially LuckyPhil for he told me how much he loves Fishy – that I got the grand total of 88520, and it told me that I had eaten all the fish in the pond, and destroyed the entire ecosystem.[]

Fish was too big to fit on the screen by the end.[}][] I think I’m cured now[:0)]. It’s been,…[Read more]

I wouldn’t think it would make that much difference to the mortgage broker to make it worthwhile for them.

Couple of things – you’ll have to pay stamp duty on the higher value, but you might anyway as it’s not a ‘arms length’ transaction if you are buying it for less.

The bank may also only lend you based on price so if you do buy at the lower…[Read more]

Sala

As i said, it will depend on your solicitor. If she has taken all that stuff, you need to make them include that as part of the valuation when they make the division.

So, have I got this right?

IP Value $230K, Loan $127K, equity $103K.
Home Value $430K, Loan $400K, equity $30K.
Total equity $133K. + all contents.

I hope you have got a…[Read more]

Polar

The pro rata one kicks in when you have it as an investment, THEN live in it as your PPOR.

I have not heard any rule changes regarding living first then renting, and the group I meet with every second week in Sydney would have mentioned it if it had come in. Presumably there would have been a bit more publicity too.

Cheers
Mel