Property Investment Q&A

  • My husband and I own our home in a blue chip suburb in Brisbane; we bought it in 2003 for $790,000 and were told a year ago (by agents and bank) its value would be $1.1m. An identical house in the same street recently (two months ago) sold for $1.35m, so we assume ours would actually sell for around that too. As we are now living overseas, the house is rented out for $850/week. The rental return is therefore about 3–3.5% and the capital growth has been about 8%pa. read more

  • We bought an apartment in Darwin in June 2005 for $250,000 (purchase price) and moved out of the property in February 2008. We now want to sell the property to buy another house in Perth. A property appraisal for $400,000 was conducted around December 2007. The property has again been rented out in February 2008 until now. Are we liable for capital gains tax? What would the capital gains tax be? read more

  • I'm currently budgeting for the next financial year's expenses and would like to know what expenses can I prepay for my IP. If we move into this IP and make it into our PPOR, can we claim the prepaid expenses back? How does prepayment work? read more

  • I own an investment unit on the Sunshine Coast worth about $360,000 and have been renting in Brisbane. I’m thinking about selling the unit so I can buy my first home closer to where I work. I bought the unit about five years ago for $250,000 so I guess I have about $110,000 in capital gains, before sale costs. I’d rather put my money towards the house deposit than pay the CGT. Is it possible to borrow from the bank to pay the CGT and then claim this as a tax deduction? read more

  • I have lived in my own house for four years. I am now planning to buy another property to live in and rent the existing one. My current house cost me $325,000. A real estate agent indicated it would be currently worth $450,000. If I rent it out now and sell it in the future, on which value will the CGT be calculated – the original $325,000 or the present value? Should I get a valuation in writing before I rent it out? read more

  • I’m 28 years old with a property portfolio worth just over $4m. My question relates to raising the issue of a prenuptial agreement with an existing partner. I’ve heard of relationship break-ups where either party, out of anger or revenge, has fought the other party for as much of the assets as possible. I can only imagine the pain and suffering these people have gone through. Although I’m currently not in a relationship, I am quite mindful about protecting what I have worked very hard for. read more

  • My husband and I are considering buying a property at auction but are a bit nervous as we’re unfamiliar with the processes involved. For example, how seriously should we take things said by the auctioneer or agent at the auction? Are their words binding, even if they differ from what’s in the contract? read more

  • I am 42 years old and have a self-managed superannuation fund holding approximately $300,000 in cash. I have not retired, but my accountant has told me that I can still access this money now in order to buy property. Is this correct and, if so, what is the process for using my superannuation money in this way before I retire? read more

  • My wife and I would like to borrow 90% LVR to buy an investment property. We're thinking of using some equity from our PPOR to pay for the 10% deposit and other costs. I'm the higher wage earner, so should I claim all the costs including LMI? What's the most tax-effective way to structure the investment property loan? read more