Property Investment Q&A

  • Q: We’ve turned our PPOR into an investment property and moved to a rental property closer to work. My understanding is that we can sell our property within six years of first renting it out and still benefit from its capital gains tax exemption as our PPOR, but what will happen if we decide not to sell and move back into the property to preserve its status as our PPOR? How soon after moving in can we sell without having to pay CGT? read more

  • Q: I want to renovate to sell, and was wondering what structure I should use to make the purchases (company, family, individual, etc.). Are there CGT savings that I can make by using a company structure, as opposed to doing the reno as an individual? I’m also aware that reno to sell is higher risk than buy and hold. Is there a structure I can use that best protects me? read more

  • Q: I built and lived in a house in WA for 21 months, which I am now renting out. I could probably sell the property for about $420,000, though it cost me about $260,000. I have been advised that if I sell my WA property within six years of completion I won't have to pay any capital gains. This sounds too good to be true… is it? read more

  • Q: I want to buy a rental property in NZ and being an Aussie, I’m not sure what tax issues I should be aware of. I also hold a few properties here in Australia so I want to know the tax implications of holding NZ property for both Kiwi and Aussie taxation departments. read more

  • Q: I want to purchase my first investment property, but am unsure if I should buy a new or old property. How will the property’s age affect my tax claims on depreciation? I was told by friends that it’s not worth buying properties that don’t have depreciation benefits. Is this true? read more

  • I want to sell the home I bought six years ago. The area has experienced particularly strong growth in housing prices, so I’m expecting to sell for more than I originally paid. But the real decision I’m struggling with is whether to renovate the property before putting it on the market. Is renovating really worth the time financially? read more

  • Q: I am in the midst of purchasing my first property but, with all the talk about interest rates possibly rising in the long term, I am stuck between choosing a fixed or variable interest rate loan. Am I likely to pay more for my mortgage in the long run under a fixed interest rate loan set-up, than if I choose a variable interest rate? read more

  • Q: I'm buying a turnkey/completed brand new house, with no body corporate complications. The developer of the estate built all the fencing and I’m wondering if it is necessary to do any checks on these boundaries or encroachments – and, if so, is this only possible if we purchase or arrange a boundary survey? read more

  • Q: I’m looking at financing options for property investing. My income is $80k (pa) and I’m looking to purchase around the $500,000-600,000 mark. I’m told cash flow positive properties are less risky, but would it make more financial sense to negatively gear my investment? How can I make money if it is negatively geared? read more