If you are buying and renovating with the intention of profit, then you won't be entitled to the CGT exemption.Other than that I cannot see why you could not claim a place as your main residence while also renting another place elsewhere. But to be entitled to the CGT exemption you must first establish the place as the main residence, to do this…[Read more]

One lawyer is advising that some banks are arranging SMSF loan documents which could result in doubt CGT being paid – so it would certainly pay to get independent legal advice before signing any loan agreements.

yuyu wrote:
hi kyleeYou have to pay CGT tax on the apartment if u are negatively geared it when u sell it. So if you dont want to pay CGT on the apartment then either u dont negative geared the apartment or you never sell it.

As it is now, Kylee can still rent this unit out and sell it without paying CGT at all by using the absence from the…[Read more]

Yep, it should be fine. Sometimes there may be higher rates if you have a company as trustee, but it will depend on the bank.

If the company is in existance it may be possible, but a guess the constitution probihits acting as trustee? For the cost of a company, $400, I would be setting up a new one anyway – that way no problems from the past can arise.A trust can be set up in a  few minutes too. You have a few weeks to pay the stamp duty.

could be as high as 12 to 14% too.

I have heard the average loan is 3.5 years too, but don't have  a source.The first loan that I ever wrote is still in tact, that is about 9 years old, but many others chop and change every few years. Trying to get equity out, getting better offers from different banks etc.

You can set up a unit trust with any number of units in any amounts – 2, 100 or 1000 etc. They are good for 2 non related parties to invest because the profits go to the unit holders in proportion to their ownership.eg 100 units, with 5 owned by Ted and 95 owned by Bill. Ted owns 5% and will get 5% of the profit.Unit trusts don't usually have…[Read more]

MikeYou can only have 1 main residence at any one time, so that plan wouldn't work. You could claim the exemption on the 1st house in full, then the second could be CGT during the period you lived in it and so on.

Look at the contract you signed, it will probably be listed

NopeIt means you can rent out your main residence for up to 6 years with incurring CGT in some situations. One requirement is that you can only have 1 main residence at any 1 time. Another requirement is that it has to be your main residence. To become your main residence you have to live in it first.

HiI stand by my comments that there is no point without capital growth. Think about it. repairs, inflation, opportunity cost.eg $100,000 property returning $100 per month = $1200 pa profit.Hot water system needs replacing = $1200= break even, but no growth to show for it.Next year something else needs repairing or breaks. Whats the point?But, If…[Read more]

Stamp duty and CGT are still payable on market value.There is still a possibility to aim for a lower figure were you can justify it with a sworn valuation.

Yeah, and sad too

You might not have to.Once you move into a place and establish it as your main residence you can keep treating it as the main residence while you are absent. But if you purchase a new place to live in you will need to chose which one to keep as the main residence for tax purposes – its one or the other but not both (unless 1 is not earning…[Read more]

Dan is correct INCOME TAX ASSESSMENT ACT 1997 – SECT 118.140 Changing main residences              (1)  If you * acquire an * ownership interest in a * dwelling that is to become your main residence and you still have your ownership interest in your existing main residence, both dwellings are treated as your main residence for the shor…[Read more]

The actual case is Giovenco v Dick [2010] NSWDC 4 and the full judgment can be found online  http://www.lawlink.nsw.gov.au/dcjudgments/2010nswdc.nsf/849ff245542dce81ca257100001bd211/c018ee676b0636f9ca2576c40011825a?OpenDocument

I am not sure, but I think the company that owns the property would be assessed and this split up between the shareholders.There are many problems with company title – so beware.

M could sell to F. F could borrow the full amount and claim the interest on this.Stamp duty may be exempt in some states for transfers between spouses.Or you could sell to a trust, which would be good long term, but then any losses could not be used to offset your personal incomes (unless you are self employed).

In the good old days I had a few client's who had their valuations come in over purchase price. One I queried the valuer and he said an identical apartment across the hall had sold for 20% more than this one so he had to take it into consideration. My client ended up getting a 95% Loan with no LMI payable. it is rare tho