Am I right in thinking that in an off market private transaction (lets say a daughter buying a property off of her parents) if the property was sold to her for 200k but it was actually worth 400k – Capital gains tax would be calculated as if the parents had received market value. Is this correct?

Myself and my partner are in a fortunate position whereby her parents are happy to sell to us one of their investment properties for 400k. The property is likely to be worth somewhere in the region of 420k and 450k – a valuation will be sought soon.

I have been basing all calculations like the example below, the value is obviously an…[Read more]

Myself and partner are currently saving for an investment property. We have 20k saved at the moment (not a great deal) but are in a position where we should comfortably have 80k before xmas. This can be repeated for the next four years with our current circumstances. Serviceability should be pretty good – we both earn around 80k each with…[Read more]

Thanks

The approach that I want to implement in regards to property investment is to source positive cashflow properties which I believe may also rise in value within the first three years of ownership but should they not, the cashflow is to be used to support shortfalls for more growth based investments – blue chip properties. I u…[Read more]

I have read and understand the benefits of paying for food and living expenses on credit card and then paying balance off before interest free period kicks in. Is it possible say if you had a credit card with a max of 10k on it, to withdraw 9k of that or transfer 9k and put it in your offset account and then pay it off again before the…[Read more]

I am hoping that somebody may be able to provide me with a rough estimate as to what I could expect to pay in rental management fees in Tasmania. If anyone has any information, I would be grateful.

Thanks

I didn’t realise that the rental income had an impact on the tax deductions. Are you saying that if the rental income on a property exceeded all its outgoings that you could not then claim for interest on the loan?

I…[Read more]

Interest paid $16000 but tax deductible and therefore 31.5% of $16000 is $5040 – I therefore recieve back $5040
Property management $1200 but tax deductible and therefore 31.5% of $1200 is $378

Where is my logic failing me :(

But do you not receive a tax deduction equal to your marginal rate for this cost?

I’ve been researching and improving my knowledge in regards to investing for about three months reading many books however there is one thing that has consistently confused me. I understand that interest on a loan that is borrowed for income purposes is tax deductible but why does it never seem to me to be factored into the working…[Read more]

thanks for your help. It seems that I may need to speak to an accountant in regards to the original loan remaining in place. The reason I asked the question is that it does feel somewhat like I want my cake and I want to eat it too.

My exact situation is that I’m buying a property and not long after settlement i’m moving away for work…[Read more]

When trying to work out calculations on the potential of a property (I currently have none but aim to change this!), I have been basing my interest payments based off of 4.5% as a broker advised that would be a good estimate for me to work off based off of current products. I just want to see whether in your opinion this is a good…[Read more]

I am wondering wether this is true. I have heard that in SA stamp duty is calculated off of the purchase price and not the value. Is this correct as I am running figures on a favourable purchase. Thanks

My gf wants to buy a house she is renting off of her parents. She wants to buy it as her principal place of residence. She is however being relocated because of her work and will not be in a position to buy it until after she has already moved. Will she be able to buy whilst…[Read more]

My girlfriend has been offered the opportunity to buy her parents property for $405,000 which she is going to go ahead with. I have a couple of questions as I am unsure of the legalities. She is going to go to an accountant but she hoped that she may get some useful advice here also. We both could buy the property and have our names on the…[Read more]