Property Investment News, Tips, Tools, Strategies, Experiences, Case Studies, Outlooks
Find out why using Trust to own investment property – Introduction By law, a trust is a relationship under which the trustee of the trust looks after the trust’s assets for the benefit of the beneficiaries. If it is set up properly, a discretionary trust may offer reasonably effective asset protection as the beneficiaries of …
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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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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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There have been a number of common mistakes identified in the tax returns of rental property owners. To help you, ATO has compiled a list of what you should do and common mistakes to avoid. If you have an overall property loss If your total rental expenses exceed your gross rental income, you have incurred …
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Question: Our mother lived in her house until her death 15 months ago. My brother and I are the beneficiaries. I have moved into my mother’s house and my brother is thinking of renting part (30 per cent) of the house out as he will not be there, and because he is entitled to do …
How can you pay off your home mortgage or home loan faster? There are many things you can do. Here are some tips from everyday Australians who are repaying their mortgage like you. 1. Make fortnightly repayment instead of monthly. You have to take advantage of the fact there’s 12 months in the year, but …
What to do about noisy neighbours? Question I live in a block where, for the past year, there’s been a group of very noisy youths in one unit, shouting, swearing and talking loudly on their balcony all night, coming home at 4am and being rowdy until 8am or longer, with bottles being smashed and music. …
Question: We currently have a $80,000 balance on the mortgage of our principal place of residence. We have $80,000 in a 5 per cent savings account with one of the big four banks and wonder how we could get more for it. Should we use the $80,000 savings to pay off our mortgage or we …
Question: I would like to know how to reduce capital gains tax on investment properties by putting some of the proceeds into super. I sold an investment property in July 2010, which after the 50 percent discount has a CGT liability of $200,000. Can you explain the process of putting the money into super to …
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Question: I am thinking of selling some land. I will pay out the mortgage on it and have $80,000 profit. Is there any way I could minimize the capital gains tax on sale of land? What sort of capital gains tax would I pay on land sale? Answer: If you have the property for more …
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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: I recently bought my first investment property in April 2010. Unfortunately it wasn’t rented out until early July. I wonder if I can still negative gear anything (claim tax deductions) for the period that the property was vacant though I received no rental income? Answer: Although you didn’t get any rental income for the …
Wondering how much does it cost to renovate a bathroom? The fact is that bathroom renovation costs can vary dramatically. It could be anywhere from $5-$50k depending upon how big, extent of structural works, access to alter existing plumbing, quality & extent of wall and floor finishes. At the low end, though, a basic bathroom …
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How much does it cost to renovate a property? According to Archicentre, the average renovation project in NSW is valued between $75,000 and $150,000. If you want to add an 80-square-metre ground-floor extension with inclusions, you’ll be looking at $164,526 to $310,896. Less than half of the expense will go towards materials. Labour will cost …
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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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