You have a few outcomes/scenarios when it comes to CGT. In the eyes of the law if you purchase the property and rent it out and then move into it as a PPOR then this is deemed as an investment vehicle and thus CGT is payable. However, if you purchase the property and live in the property (the ATO doesn't do a house visit to see if you are living…[Read more]

You need about 25% to avoid LMI. 20% Deposit, 3-4% Stamp Duty and 1% other costs. In some cases LMI works since it is tax deductible.

Why is the investment in your wife's name if (I am assuming) you are on the higher TR?

Hi Stu,

So the PPOR is in your name and you are effectively borrowing the funds against your PPOR and providing this as a 'gift' if you will, to your wife who has the title on the IP in her name? If yes, then only the people who are the title are able to claim just the portion of the borrowed funds against the taxable income.

If you are on the…[Read more]

Hi Sarah,

Do you currently rent or do you have a PPOR? This is not answering your question but just checking to see if you have thought ahead about CGT?

Regards

Shahin

You are not liable for CGT because you started by living in the property as opposed to renting it out. Unless you are claiming another property at your PPOR during the time you were renting out the property. Is this what you have done?

Hi Jer29e,

Yes the cost of building a GF is between $80k-$100k. The benefits of a GF is that you may be able to build the GF without DA. The cost of building a house is minimum $150k and could cost up to $500k depending on the finishes and the size. If its an IP I would recommend using a kit home builder such as Wincrest, etc. A custom designed…[Read more]

Hi,

You are saying that the current balance of your PPOR is $610k and you want to increase this by $90k and that your PPOR has been valued at $950 by the bank – is this correct? You should still fall under 80% unless you are looking to increase your limit of $631k by another $90k.

If its cross securitised then this is not good and your first…[Read more]

Hi PDimi,

Welcome to the Forum.

Short answer to your first question is look for an IP that has land content. Buying a 1 bedroom unit close to the city will have a higher rental yield compared to the block of land in Penrith however the block of land in Penrith will have more potential for capital growth. Not negating the importance of rental…[Read more]

Hi Mate,

Good luck – looks like its a lot of hard work but im sure it will pay off. Keep the team here posted the progress!

Regards

Shahin

Hi Team,

I actually like the website great work!

Only suggestion I would make is bringing the "Latest News and Information" higher up so that it is at the beginning of the page – saves you scrolling down each time. 

Regards

Shahin

Hi Smartcube,

When you say capital growth – are you talking about organic CG or are you wanting to potentially do something with the property? I am quite familiar with Seven Hills – it was decent sized blocks with good potential for duplex style development. Rental demand is strong however you want to look at finding something close to the…[Read more]

Hi Kesiera,

We would need a bit more information but here is a response with a series of assumptions.

If the property you are purchasing is in NSW and the value of the property is $350k then you would need to come up with at least $365k in funds (if your LVR is 80% or under) or aprox $370k (if your LVR is 90%). 

If you have $100 in equity…[Read more]

Actually some of the older buildings are better built than new apartments. In all cases, new or old, you need to do a building inspection. Some say it is not worth doing a building inspection on units but I say they are not using a good building inspector. Also get a 2nd floor unit and not a ground floor unit. To answer your question – yes it is…[Read more]

I have personally bought 2 properties in ‘lower social demographic areas’ and waited about 5-7 years and waited for it to improve dramatically (both from a capital growth perspective and a general demographic area). You do need to ensure that the tenancy agreement is water tight. On both occasions I asked that the rent be paid on a weekly basis…[Read more]

seqel wrote:
Hi Everybody,

Thank you for all the posts, its interestin to see what everybody is up to and how they are doing it.

My question is in relation to building networks, How is everyone doing with this?
I often ring carpenters etc for quotes and they dont show or give amazing high quotes (in my opinion),
Whats the going rate for basic…[Read more]

free_dom wrote:
Hi Finance Shop,We reside in Sydney and would like to continue to invest here. Both our properties are apartments in the inner west of Sydney. We were looking at buying an IP house in western Sydney with DA plans for a duplex . I don't think we would able to muster enough money to build at the moment but could be forth while down…[Read more]

free_dom wrote:
We both work in stable public sector jobs with a collective gross income of about $130000 and no dependents or personal loans. We are starting to build wealth for our later years but not to retire till we are in our late 40's or 50's plus the property game is rather interesting. Our PPOR is P&I and our IP is IO. Not sure what you…[Read more]

free_dom wrote:
Hello,I'm 26 yrs old and my partner and I have just started to get into property investing and we are unsure as to what to do next. Our PPOR is worth around $580 with $390 owing and our IP is $560 with $390 owing. From these sums i would assume we have about $120 in useable equity. Question is do we use all of the deposit on one…[Read more]

You need a hydraulic engineer to prepare one. Make sure you shop around as some may charge you an arm and a leg.