Forum Replies Created
Thank Terry. My understanding was same i.e. You can still claim the the CGT free period for up to 6 years after moving out. But one tax agent advised me that since i have brought a new place of permanent residence in Dec 2018 – I will need to pay CGT on any growth in original property after I moved into the new place (Dec 18). Is that correct?
Thanks for quick response Benny. Yes – it does bring smile to my face hearing that I can hold it for upto 6 yrs of moving out without incurring CGT. However – i do plan to purchase a new house as PPOR – so I believe that I should sell existing PPOR first and then buy a new one.
I look forward to more responses from accredited adviser in this forum.
Thank you. This place is great !
Sharing useful links from ATO website
http://www.ato.gov.au/content/downloads/ind69513nat14233062010.pdf
http://law.ato.gov.au/atolaw/view.htm?locid='SAV/00238031'
Meaning Australian Negative Gearing benefits can availed in all scenarios? Can you recommend any Tax Accountant in Sydney who have experience in Overseas Property Negative gearing?
Says around 300k in there website.
Check flyingsolo dot com dot au/
Stupid question from a newbie in Property Investing.
When we say positive cash flow property, do we use Interest Only repayments or Principal+Interest repayment for Net Cash flow Calculation.
I am finding it really difficult to find a positive cash flow property even in Western suburbs of Sydney, if I use Principal+Interest loan repayment for Net Cash flow calculation.
Guys, Thanks for great response to my post. I was never expecting a reply from the my main source of inspiration, man himself 'Steve' !!
Let me be more specific about this overseas investment opportunity.
Its off the plan multistory apartment project where only 30% of the total price needs to be paid in within the first 6 months and the remaining money is paid in small amounts over next 2 years as this multi-apartment project gets ready for occupation. Plan is to sell this property after it is ready for occupation as normally you get very good captial growth within this timeframe (above 50%) in this overseas location. This profit may be brought back to Australia or re-invested in another IP overseas. So No rental income only capital growth.
The plan to finance is as follows. Use equity money to pay the initial 30%. This could be equity loan or LOC. For remaining, since it is in small amount, no loan is required and can be paid from monthly savings.
1. Do I need to to declare any foreign income from capital growth on tax return if I fund 30% from Equity loan?
2. Do I need to to declare any foreign income from capital growth on tax return if I DO NOT fund 30% from Equity loan rather pay everything from personal savings?
3. This overseas location has very high captial growth but very low yields. If I dont sell it off and use Equity loan to fund entire property or just 30% of it, will I get tax benefits of negative gearing for overseas IP property during the construction or after it is rented?
I understand the risk of volatility of the currency (when I am sending money overseas or bring back capital growth money ) may have a negative or positive effect in the actual profit.
Thanks for your great help.
Cheers,
