Property Investment News, Tips, Tools, Strategies, Experiences, Case Studies, Outlooks
I read an article titled “7 questions to ask yourself before buying an investment property” somewhere on the Internet. The first question of the 7 questions is “Can I afford it?” I suddenly realised that I have never done a blog post on how my website visitors could use my investment property calculators to help …
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Find out why using Trust to own investment property – Distributing income and capital gains For taxation purposes, a discretionary trust provides maximum fl exibility in terms of the annual net rental income of the trust and/or any capital gain on the sale of an investment property. This is because the trustee has the discretion …
Find out why using Trust to own investment property – Recouping tax losses Any negative gearing loss generated by a property owned by a trust is usually trapped in the trust, unless the trust has other income to offset the loss. While the trust can theoretically carry forward tax losses for an indefinite period, the …
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Find out why using Trust to own investment property – Passing on 50% CGT discount Unlike a company, which is not eligible for any capital gains tax (CGT) discount, a trust is eligible for the 50% CGT discount provided that the trust has held the property for at least 12 months before it is sold. …
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Find out why using Trust to own investment property – Passing through depreciation and capital works benefits Perhaps one of the main reasons for trusts being favoured as a property investment vehicle, instead of a company, is its ability to pass on any net cash profit. These profits can be passed from the property that …
Download the home loan offset calculator used in this article (Excel). How does home loan offset work? An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan. With a …
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The latest Association of Superannuation Funds of Australia research shows that, in general, a couple looking to achieve a comfortable retirement needs to spend $57,195 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $33,120 a year which means that the average couple need a lump sum of about $660,000 to survive …
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As a property investor can you ignore the strata levy though nobody likes them? The short answer is NO! Why you should NOT ignore it Firstly, a compulsory 10 per cent penalty interest rate is applied to all overdue levies. Secondly, as well as interest, the costs of recovering the debt are entirely payable by …
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Some of my friends asked me where they should put their money, specifically: 1. the offset account of their PPOR (principal place of residence) home loan or the offset account of their investment property loan? 2. a term deposit or the offset account of their PPOR (principal place of residence) home loan? 3. a term …
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In these uncertain times of slow property markets and crashing share prices, are you still tossing up best place to park your hard earned money for maximum chances of capital growth? You may be surprised by the latest thinking on whether you should invest in property or shares. According to the latest Russell Investments/ASX Long-Term …
According to an article in the Sydney Morning Herald, a family on $180,000 combined or more, and not eligible for either tax cuts or family benefits, receives only between $3 and $6 a year and faces an average increase in the cost of living of around $1000. So what does this mean for investment property …
Continue reading “The carbon tax costs me half of my investment property”
Question: I recently bought my first investment property, there was an extra $2000 special levy charged by the body corporate to repaint the whole building. I presume it falls under repair and maintenance so it is tax deductible, right? Answer: As the building was in need of a repaint when you purchased the investment property, …
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Question: We are moving interstate and own a property with a $300,000 mortgage that we would like to keep as an investment property. I would like to know: (1) Is it true that if we keep this as our primary residence we won’t pay capital gains tax if we sell within six years. (2) Can we claim tax deductions connected with …
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According to an article on NineMSN Money, you can possibly become a property tycoon for just $1. But how? The article suggests that you should look towards Michigan’s biggest city, Detroit, where houses start at just US$1. Yep, according to Sydney Morning Herald, the city of car manufacturing plants, Eminem, and soaring murder statistics, is also …
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Yes or no there is no correct or incorrect answer. But I would hold there for a few more months. Personally, I think it is not a buyer’s market. Let’s use Melbourne as an example. The overall auction clearance rate was 87 per cent, compared to 75 per cent this weekend last year and just 66 …