Maybe contact the

Tenants Union of Victoria http://www.tuv.org.au/homepage.aspx

Hi Peet

I think it would work like this:

Base $100,000
Sale $240,000
Gain $140,000
50% discount on CG if held more than 12 months = $70,000

But only half is sold so 50% of this is $35,000

This goes on the top of the taxable income of the person who sold it. But don't forget other costs such as legals on buying and selling and stamp duty can be taken off the profit, before the discount.

Peter Spann's book is great.

Hi

I guess the answer depends on your view of the market. Do you think prices will rise in the short term or fall? I am inclined to think that Sydney prices will rise as rents are going crazy here atm. This should push up prices – or rents at least. You seem to be getting a pretty good yield as it is too.

if you can handle the repayments and don't need the money at the moment, then work out what it is costing you per year and estimate if the expected growth will exceed that.

The problem with land is that you do not get any income – so you will be limited in the number of blocks you can get.

You can't have you cake and eat it too – unless you go No Doc – which are few and far between for commercial.

Yes you certainly can claim interest on land if you are intending to build a rental property. You can claim all the usual costs too such as rates etc.

Gibbo. did you learn much by doing the course?

You must be in QLD as that is the only state (i think) where the stamp duty varies depending on the purpose.

How bad is the property, could you 'live' in it while renovating. Do you have another proeprty which you will be claiming as the main residence at the same time? Maybe have a look at the OSR website in QLD and see what they say about defining intention and investment.

Trusts can distribute to other trusts, so having a business in one discretionary trust and the house in another is a way to maintain separation of assets and offset losses.

The ATO doesn't seem to like people renting their house from a unit trust in which they are the unit holders.

see TR 2002/18 Income tax: home loan unit» «trust» arrangement

"Having regard to the eight factors in subsection 177D(b), a reasonable person would conclude that the sole or dominant purpose of a person or persons entering into or carrying out the scheme is to enable the taxpayer to obtain a tax benefit. Part IVA will therefore apply to deny the deductions claimed by the taxpayer. "

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~unit~basic~exact:::AND~trust~basic~exact:::AND~main~basic~exact:::AND~residence~basic~exact&target=EA&style=html&sdocid=TXR/TR200218/NAT/ATO/00001&recStart=1&PiT=99991231235958&recnum=19&tot=72&pn=ALL:::ALL