My partner (recently my fiance) where in the same position as you, this time last year. We bought our PPOR in November and we should finish some renos in the next couple of months with the hope of building enough equity to start investing in the new year.

So from the perspective of someone who has been in the same position, looking back…[Read more]

The indexation method was used to remove the effect of inflation on capital gains, so you don’t get taxed on the inflation portion of the capital gain. This method stopped when the discount method came in september 1999 when the discount method was introduced.

This method can still be used on property purchased before 1999 but rarely…[Read more]

Q: Do you see the existence of cf+ properties as simply being undervalued? (Apart cf+ properties created through renovation etc.) As a beginner I struggle to get my head around how…[Read more]

Rhys

I believe in order to be able claim deductions for an asset, it needs to be income producing eg. receiving rent. Maybe it can be structured to be able to do so, but at this stage I think costs are capitalised not deductible. Being held for capital gains alone is not sufficient to be able to claim immediate deductions, you receive the benefit…[Read more]

All the best
Rhys

I’m not 100% clear on this so you may need further advice, but I believe there is a rule along the lines that if you buy a block of land with the intent to build and move in as your PPOR, you have 4 years to do so. I’m just not sure how it works if you have currently elected a different property as your PPOR (as opposed to renting while…[Read more]

My understanding is since you don’t charge GST on the rent, you can’t claim GST on residential expenses.

Rhys

Rhys

Rhys

To answer your last question, if you are an Australian resident and earn income from NZ, you will be taxed by both countries. However, you will receive foreign tax credits up to the amount payable in Australia on that foreign income.

Hope this helps
Rhys

Rhys

Rhys

Not a dumb question at all.

An important aspect to look at when determining investment strategies is your investment time line. If you are saving for a deposit to purchase a property in say the next 12 months or so, shares may not be a good option as shares are better for a longer term view. Prices of shares can fluctuate by as much…[Read more]

You will be able to retain you house as your PPOR (CGT free) for 6 years while living elsewhere, as long as you don’t elect another property as you PPOR.

Eligible claims:
-Interest
-Depreciation
-Rates
-Insurance
-Repairs and maintenance(not capital expenditure)
-Property management costs
-Anyone care to add to list?

Rhys

Rhys

Could you let me know about running a Hybrid Discretionary Trust and distributing losses?

Thanks
Rhys

As for the cricket, I think we will hang on to the Ashes for a few more years yet. England don’t seem to have the ability to put a truly champion side…[Read more]

I think you can depreciate your fence over 20 years, looking at ATO effective life tables. This means either 5% prime cost or 7.5% diminishing.

Rhys

-Losses are not able to be distributed from a trust, ie. if you negatively gear the property the losses will be tied up in the trust until runs at a profit.

-I think you are still eligible for the 50%…[Read more]

Thanks for that, I’ll give it a go.

Rhys

I’ve also been warned about the traps involved in the finance clause on a contract. I’ve been told that if the contract is subject to finance the buyer must go to all lengths to find finance ie. If the agent can arrange finance through ‘Bills Backyard Finance’ at 10% you are bound (not sure how accurate this is, any thoughts?).

I…[Read more]

If you are interested I could email you one I’ve been working on, I’m interested on any feedback or if anyone else may find it useful. Voigtstr has been kindly trying to show me how to make it available to everyone, but my internet related computer skills are limited.

Rhys

I’m with Dodo. Don’t worry about it if its too much of a hassle.

Rhys

Thanks for the reply but it sounds a bit beyond me. I might wait until I’ve tidied it up a bit and start a thread if anyone is interested in having it emailed to them.

Thanks
Rhys

Thanks
Rhys

Correct me if I am misinterpreting your question, but are you refering to including you unrealised gains? I’m not to sure on the situations for property B and C in your example.

Your marginal tax rate is derived from income (Salary, rent, dividends, Trust distributions, realised capital gains etc.) less any deductions.

If you have…[Read more]

Borrowing costs relate to stamp duty on your mortgage and fees associated with your loan, application fees etc. These are amortised over 5 years or the life of the loan (whichever is shorter). I believe borrowing costs <$100 can be immediately written off.

Stamp duty on your property is capitalied and added to your cost base for CGT…[Read more]

Its great that you are looking to increase your earning opportunities through investing.

Take your time to learn as much as you can (that is why I am here) before you put down your hard earned cash. I feel that with the market the way it is (just after a huge boom), rushing in could be dangerous, I don’t see that you will miss out on any…[Read more]

I think you are pushing the boundries with bringing your child and kennelling your dog, but since you are both directors of your company/trust I don’t see why you wouldn’t be able to claim both of your cost involved with inspecting your properties (flights,accomodation etc.).

If you are planning on hitting the ski slopes while you are…[Read more]

Each property is its own kettle of fish, sure it will be affected by market swings but no matter what the market is doing, there will always be good individual property prospects. I like to…[Read more]

I am constantly looking for stories from/for younger people because I find 90% of financial article these days are focusing…[Read more]

I agree with gafama, you will generally need to put some work/thought into to making a property cashflow positive.

Being new to property I thought it might be worth mentioning that generally Comercial Property will give you a higher yield if you can lock in some good tennants.

All the best
Rhys

I am in a similar boat, looking to take the plunge into the Investment Property market. One thing that has been said to me that has stuck in my mind (and supports other postings) is invest to a plan, not for the sake of investing.

If you are looking to increase your cashflow have a plan about what property you will need to find (or…[Read more]

If you own 2 properties, one PPOR and one IP,…[Read more]

Good luck with your plans, I hope it works out well for you.