Hi Jessica,

I am putting my PPOR on the market at the moment. I contacted 3 REAS in my local area for an appraisal. My prerequisites before coming were:
– REA that has been in the industry longer than 6 years (experience selling in tougher times).
– area sales data going back 6-12 months.
I showed each of them my property, advised them I had…[Read more]

WANC?? Dazzling, your wit makes me smile[biggrin][biggrin]

If they are battlers (ie just getting by) make sure you factor in significant interest rate rises. I know of a case where in order to get into the market, IO was chossen as it was cheaper on a monthly basis. The problem occurs when rates rise and those that are close to the mark cant cope. The other way to look at PI is as forced savings. If…[Read more]

Is this your place that you are selling?

Hi Joel,

It sounds like you are planing to live in the place you buy. It also sounds like you have looked at the interest you would be paying and broke out in a cold sweat [biggrin], dont worry, that probably what we all did the first time we looked at our first purchase. What helped us at the time to overcome this mindset was to take into…[Read more]

Slow draining water may indicate tree root invasion or other blockages/problems. Condition of water leaving taps may give an indication of condition of pipes (ie rusted pipes – reddish water), although if it has been recently lived in one would hope these were not too bad….but nothng replaces the checking you do yourself. These should be picked…[Read more]

Yes, Sorry for not explaining that a little better.

The original intent was to build and sell current PPOR and move to the one now being built, (with view to repeat 12 months later). Thus taking advantage of any equity without being CGT penalised. Add children to the mix and current build property no longer is suitable. So short story is how to…[Read more]

How about selling PPOR to trust and then leasing it back? Then transferring PPOR status to buy build sell projects (1per annum). I have asked 3 accountants about this and have recieved 3 different opinions, yes, no and yes but dont use a trust, just do it in your own name.
If any one has a learned opinion I would be interested. I am in muddy…[Read more]

Hi Munno,
With regards to your 3rd option, buying land and building on it.

This is going to sound very obvious but you would be surprised how many people get caught out. If you choose the build option and choose a project home builder (you know 4 bedroms etc etc only 120K or thereabouts), look closely at the inclusion, I mean really closely.…[Read more]

Hi Simon,

Sorry I dont think I was very clear. I was particularly refering to a buy reno sell situation or a buy build sell situation.

Lets say you own and live in A whilst reno and sell B. If you plan not to use PPOR status on A (not predicting as much growth if sold, or future hold and rent), can you claim the PPOR CGT exemption on B? If so…[Read more]

Lets assume you move out of your PPOR, and later buy another property to live in. Do you HAVE to change PPOR status to the recently purchased property or can you leave it with the original one for the 6 years? Following on from this, can you live in a property you own without calling it you PPOR and move your PPOR status from one reno property to…[Read more]

I strongly suggest you speak to your accountant. In the meantime do a search for off shore trusts on the ATO website. You will find various rulings relating to this citing penalties for knowingly setting up trusts/companies for the purposes of tax avoidance. You mat get away with it……and then you may not!!!!!!

Hi Dylano,
Congrats on your new home.
With regards to the revaluation, why do you want it, general interest or to borrow against? If general interest, you should get a fair idea from the REAs. If getting the bank to value, first check how long they will give between valuations. My lender will only revalue once every 12mths, this can be either a…[Read more]

Dont forget, REA usually list the GROSS rental return. That is prior to all costs (strata, management, rates etc). 7% can often come back alot lower wher you factor all these in.

Hi Terry
Thanks for those links, great info.
cheers
T

Hi Dv,

I Have just got a copy of PI.com’s Wealth Guardian. Given your questions and interest, I think you would find it very interesting. I think they are out of stock at the moment,but I am sure they would have a waiting list.
T

I recall when we bought our first PPOR it coinsided with a lot of publicity from the big banks about this method (ie pay all on a CC then pay CC off). It doesnt take alot of commen sense to realise that if you pay more off your loan (or spend less – ie account for you spending) then you will pay off you loan sooner. When I asked the loan officer…[Read more]

Gotta hand it to you DV,

You are certainly thinking alot lately. Creatively as well. Good on you.
T

I knew about the 6 year rule (my account told me it came in because that how long 2 terms are in politician land – didnt need to sell their PPOR). My question however is:
If you have PPOR, move, rent it out claim as PPOR up to 6 years, where are you allowed to live in that time? Is there a distance. ie interstate, different town? Can you live in…[Read more]

Dont worry Tony, It did look fancy (until you gave it away!!)[laughing]