We have often heard of a friend (or a friend of a friend) who is making a killing with investment properties and wonder why I cannot do the same? With the housing market on the rebound, home values are rising across the nation and it could be a great time to invest in some properties. …
What Your Options are if Your Home is Under Threat of Repossession?
There are many points at which you have a chance to stop or postpone your house from being repossessed, if you take heed of the warnings. It is a scary place to be when you think you can’t make the repayments, but don’t be fooled into thinking that you’re powerless. Seek Advice If you think …
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When you should buy a property?
Do you know mood and weather might affect your decision of property purchase? An interesting article published by SMH tells the story. The story started with the well-known wisdom that you should “never shop on an empty stomach”. A few years back economists Daniel Read and Barbara van Leeuwen proved the point by asking British office workers to choose …
Common mistakes in tax deduction for rental investment properties
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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Property investment in USA – Be warned Aussie investors!
Are hundreds of Australian investors going to lose millions of dollars in the American property market? It might be! Prices for American properties are so low and the Australia dollar is so high that an investment in “the home of the brave and the land of the free” seems like a really good idea. You’ll …
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Learn how to repay your mortgage faster
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 …
Should we pay off our mortgage?
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 …
How to reduce capital gains tax on property through super?
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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Can I claim tax deduction for the expenses happened before the property was rented out?
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 …
How much does it cost to renovate a house?
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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Can we claim tax deductions when renting out primary residence?
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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Do I have to pay capital gains tax on the half property I inherited from my spouse?
Question: My spouse and I owned an investment property in joint names until my partner’s death 10 years ago, when I became sole owner. The property was sold last year. The property was not our main home. Do I have to pay capital gains tax on the half I inherited? Answer: If the property was …
“Get rich quick” or just real estate property hoaxes & scams
Property is a long term investment and proven performer in any economy, but “get rich quick” courses and seminars offered by wealth creation ‘gurus’ are giving a bad name to the entire property investment industry. The problem is that these courses, which is normally free, are essentially capturing people who aren’t ready to invest and …
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Property investment strategies – How to pick a good investment unit or apartment
Are units or apartments good or bad for property investment? What factors should you consider when buying investment units or apartments? Many people invest in apartments because they often have a cheaper buy-in price than houses and are also thought to be a lot easier to maintain without gardens to worry about, and with the costs of …
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Which house price you should trust: median price or average price?
You might often hear median price and average house price. What is the difference between median price and average price? Which one you should use as a reference when you want to purchase properties? Difference between median price and average price Averaging adds up property prices in a list and divides by the number of …
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