Hi Cam,This will certainly require a visit to the accountant, but in a very similar scenario, my accountant advised us that if the intent is to sell and make a profit, then you are not eligible for the PPOR exemption even if you live in it for a period of time, so I suggest you find everything that would indicate your intention to stay in a while.…[Read more]

I would seek the advice of your solicitor and have anything the agent says in writing. A few years I allowed a contract to fall over due to the severe health prognosis of one of the buyers as advised by the agent only to find later that it wasnt actually true. Whilst the agent may also have been caught unawares, I would now say "prove it".…[Read more]

Thanks for the review, work stopped me going and I was sorry to miss out. Any idea when next year?Mick

If you use your top up to pay off your CCs AND CONTINUE TO PAY  the credit card payment but onto your home loan, you will be better off. Dont forget though, if you only pay the minimum you may end up paying more in total as it is over a much longer time frame, althougth it will be easier week to week.PS pay it off then cut it up (or at least…[Read more]

Hi Chivy,1. reno – I agree, if you are not a handy person and not comfortable with the possible risk attached, then give the renos a miss. That said, dont lump all renos in together. It is very easy to replace carpet, the guys in the shop do it for you. Use your current living arrangement as an example. Get a few measure and quotes (no cost to…[Read more]

I got the SD exemption along with the FHOG when it came out in July 1 2000, so it has been around at least that long.

Not that I live or invest there, but I thought Adelaide had "taken off"?

Its all about the numbers. When you run all the numbers for each proposal, compare what return for what timeframe. Yes, as TC says, you may be better off financially with the townhouses, but if the loan puts you into the commercial lending arena rather than residential it may be a different story. There is no wrong choice, only a less informed…[Read more]

I agree with the start small.  For both the IP and the PPOR. If you are willing to get to the "dream PPOR" by going through a few steps, you may find you end up with a nice portfolio of IPs AND a PPOR rather than just struggle with the interest on a dream PPOR with no rental to offset it. Also you may like to consider your first purchase being…[Read more]

Once you have paid down an IP you are not able to reborrow and claim the interest on this new loan as a tax deduction, unfortunately. Only the interest on the lowest amount ever owing is claimable, but as always, confirm this with your accountant as I am not professing to be one.

Opps, sorry, I have just reread and see that it started off as an IP. So that will mean not all of your gain is tax free if you sell. Again, have a go at running the numbers for each scenario, see with each where you will be in now, 1 year and 3 years and then it will be more clear which strategy suits your family's goalsMick

Hi Pickle,Firstly, Congratulations on being in such a great position. I am sure you will get some excellent opinions off this forum, but remember, as only you know what your goals for the future it wont all be suitable.So I will have a go and offer my opinion. As I prefer to have a lower LVR, I do sell when I feel an asset is no longer performing…[Read more]

Also ask about headworks charges (water, sewer etc), Look about for stormwater pit, how close are you. Any power poles in front? Bus Stops? All these can cost money if they need to be moved. Any easements etc on the land? But as Scott suggests, a good place to start is with the council.Also, do a thread search on this site as this has come up…[Read more]

Just dont forget if the intention is to build for a profit, you are not entitled to the CGT reduction even if you hold the land for more than 12 months and you are also liable for GST as it is the sale of a new premises. So when you work out your profit margin, dont forget to factor this in. It was mentioned in one of the API magazines that it is…[Read more]

Out of curiosity, are they strata titled? If so, I thought it was the stratas responsibility to repair the buildings from the internal paint out (ie the cracked wall). In the last strata unit I woned, it was the stratas reaponsibilty to repair/replace a window that no longer closed properly, a cracked shower screen, reseal/waterproof the shower…[Read more]

Hi Scott, Thank you for your comments. However, I feel I may have explained the situation a little poorly. Let me have another go.At this point I have 2 homes, one almost ready for occupancy(Block , the other, also built new, we have lived in for the past 3 years(Block A). We are moving into the new home as soon as the fencing is complete (but…[Read more]

What about the idea of a family working bee weekend where your parents supply the food. Yes it sounds old fashioned but it may be a good way to do some basic gardening/landscaping to at least tidy everything up and make what really needs to be done more apparent. Mick

Precisely my point. I would prefer to call the land cum construction the PPOR as it has shown the greatest capital growth. As such, I am understanding that I must declare the current house for the purposes of CGT (never intended to try and claim two at once). Just trying to clarify things prior to going to the accountant. What my biggest question…[Read more]

Hi Scott,http://law.ato.gov.au/atolaw/view.htm?docid=PAC/19970038/118-150States I can claim a vacant block of land as PPOR for up to 4 years prior to the dwelling being built so long as I move in and stay for at least 3 months after. What I cant find is the ramifications of living in another dwelling that I also own during the construction time.…[Read more]

On that note I have been reading up on a new mine called Belvedeer. A new underground mine in the bowen basin. Seems to be huge. Any thoughts?