Hi Kimmy,

I’m in Broome too and am checking out places near Perth. I did as much on the ‘net and papers as I could and am now in Perth checking them out physically. From this, I can get a real feel for the towns and also have a chat to the locals as well.

It has paid off, as I have just found 2 very +ve geared property and the sellers have…[Read more]

Try to use your capital loss to offset short term gain ie <12 months if you can. It seems such a waste when you offset it against long term gain, ie > 12 months, which is taxed at half the rate. eg 70k loss offset against 70k short term gain saves $33950 tax (@48.5%) but if it’s offset against 70k long term gain, it saves $16975 tax. (half of…[Read more]

quote:
There is an interesting rule that may apply to your situation (not clear from your question) that says that if your PPOR becomes an IP and you don’t own another PPOR (say you rent for a while) then the IP (your old home) can be sold without any CGT within a six year period.

Do you have to be overseas for the 6 year rule to apply, or can…[Read more]

Well, to start with, you could lend me $******at **%p/a. My preffered way is on Interest Only terms, in 12 months refinance. Would be secured.

*************@hotmail.com

QUICK SOMEONE ADOPT ME TOO!!!

No I’m serious! [] Any thoughts would be greatly appreciated.

Here’s my story…

The Story
Young fella started working for the first time in his life and found that the more you start making the more you can borrow. I was given approval for a $4000 Visa card while I was at uni with no income except Austudy.…[Read more]

Let’s not forget about the other side of Australia (WA). Early research on Geraldton shows good opportunities. Southwards of Perth? May have missed the boat……Any other thoughts for opportunities in WA?

is it just me or is anyone else over the fact that in the last few weeks (ie since steves book’s been out) this forum has been pumped with “show me where these +cashflow properties are”. practically asking for you to put the piece of property in front of them and just say sign here to become rich in PI, you dont have to do any work yourself.

i…[Read more]

Michael you’re not concentrating! argyle was showing what it would have cost if Steve didn’t use wraps. Dave dare I ask what percentage of your properties are wraps?
J

That’s all very correct Snow. I was just assuming you may still have some mortgage on your PPoR, which would become deductable. As Terry wrote, you need to sell your PPoR if you really wish to move to your new property, and can’t afford the non deductable loan. You could then buy a new IP of course, it all depends on how much you want to move, ie…[Read more]

Crashy, as you live in Qld, you can easily check all the details at http://www.osr.qld.gov.au/taxes/land/index.htm
The new threshold in Qld is $220k, and the rate increases depending on how much over the threshold you are. eg $1,000,000 it’s 2% (marginal rate). It’s all in the pdf info sheet.

quote:

little bit of money as long as i can get a lower interest ( maybe less than 6%) remember i have a 300k loan, 7.40% interest, do you think a certain bank will refinance me in this situation? But i have to do reasearch first and do the figures if

REGARDS, LUCKY40

Lucky40, My bank loan is at 5.97%, which is at a 0.7% discount to their…[Read more]

I’m not sure about your interest rate deductions (probably could but it may be difficult to work out how much of the loan belongs to the room) but there’s one thing I would be very careful about, depending on your total property values, and that is my pet hate: LAND TAX! If you conduct any business in just one small part of your PPoR, then the…[Read more]

It’s probably much the same as my wife having to go guarantor with her half of our PPoR for IPs in my name. She had to get independent legal and financial advice as part of the guarantor process. I believe these steps are now legally required before the bank can accept her as a guarantor.

I just stumbled across something relevant in the ATO Tax Guide.(great light reading not!) Snow, if you are intending to move to your new property within 6 months of its purchase, both properties will have PPoR status, ie your new property will not be subject to CGT based on its first <6 months as an IP if it is eventually sold. Best to check with…[Read more]

Capital gains tax is calculated on the relative time you held it as an IP. eg if it was your PPoR for 7 years, and then an IP for 3 years before you sold it, you would pay tax on 30% of the gain (further discounted by 50% because you held it longer than 12 months). This example comes straight out of the Tax Guide 2001.
J

This is the thing that kills me. After researching the stock market for the last 18 months and attempting to self-educate myself, it becomes vey apparanet that I know bugger all.

However, how much knowledge, experience and ability do I need to begin investing?

OR, conversely

How little knowledge, experience and ability will guarantee me 100%…[Read more]

Just one other thing snow, don’t forget that you wll need to inform the Office of State Revenue of your change in PPoR, (if you are above the threshold for land tax that is) as it will affect your land tax (your PPoR is exempt).
J

Hi Snow, Yes you can switch between renting a property and living in it and VV. You will be liable for capital gains tax on each property in proportion to the number of years it was an IP Vs the number of years it was a PPoR. Any mortgage you have for your PPoR will become tax deductible when it becomes an IP. Noel Whittaker often mentions this.…[Read more]

Hi UmpteenOne, One of the very first things a bank will require will be copies of your lease agreements. One bank even asked me for them when I was trying to go guarantoor for a lousy $5,000 student loan for my daughter!
Banks will typically only count about 80% of your rental income as well (I guess to allow for vacancies etc).
J

I think you should always try to avoid “contaminating” any loan with private purchases. It’s much better to have separate loans (or sub-accounts if you have a portfolio/”line of credit” loan). You may incur a bit more in fees, but with that amount of money borrowed, some banks (at least mine does) will waive any such fees associated with creating…[Read more]