Jenman article on 'how to save your home'
- Thread starter DavidMc
- Start date
yeah all good and powerful hints.
especially going home to mum and dad's.
and i think we'll have to start forming bigger households in the future....that's how our grandparents lived.....living alone into old age is what is increasing the need for more houses and causing a lot of social disconnect imho.
especially going home to mum and dad's.
and i think we'll have to start forming bigger households in the future....that's how our grandparents lived.....living alone into old age is what is increasing the need for more houses and causing a lot of social disconnect imho.
Yeah leave seek.com on your computer whilst your out to lunch ... great suggestion ... Imagine the surprise when the boss replaces you with the younger new improved model because he wanted to strike before you did...
The other suggestions were all sound ... and getting a pay rise is not as hard as it seems ... just ask what more the boss needs doing in exchange for a higher salary
Haha same thing here Bazza. Finally he came up with some useful advise. Not like his $180million dollar property theories.
I'd say he's had a lot of useful advice for people. Maybe just not for you.
And whats the $180 million theory?
And whats the $180 million theory?
Thanks for the link,i also thought it was a good read..willair..
Keep in mind Mofra that what is 'bleeding obvious' to investors is good advice for most people, cause they really don't think about this stuff.
Mark
Being frugal and saving money are one half of a wealth creation program and that is what the article seems to be suggesting. The other half is INVESTING and he seems to be against anyone who offers advice on the other half of the equation.
Having equity and income from rental properties is another way to "save your home"
Having equity and income from rental properties is another way to "save your home"
Yes ithought they where good suggestions.
but I had problems with
"Suggestion Two. RENT THOSE EMPTY BEDROOMS." and thought it was mis leading ..in that it leaves out some very important warnings
1) the rental for the spare bedroom is regarded as rent - so you need to declare it and pay tax on it
2) you need to pay capital gains tax based on the area of bedroom and rest of the house - examples on ato site.
3) In many states you loose the full ppor land tax exemption - since the property is now earing income. In qld this is calculated once again on the % space rented out ...
I can not see any way to avoid these - i know people do and do not declare it but that does not make it correct.
Noel Whittaker had a similar articale in Queenslands Sunday Mail , Page 70 9/3/2008. He hints at this problem in a vague way. Specifically , he says ..
" Can you take in a border to help with rates , insurance and electricity??? If you do, be careful that the money they give you is treated as a contribution to household expenses and is not actual rent - otherwise you could find yourself loosing part of your capital gains tax exemption as you are carry on a business in part of your residence."
I can not really see how this could stand up to a tax office investigation ...?
Anyone care to comment ...
( For me its an interesting idea ... my household rates/insurance/electricity/gas would have to be at least $4000 a year )
but I had problems with
"Suggestion Two. RENT THOSE EMPTY BEDROOMS." and thought it was mis leading ..in that it leaves out some very important warnings
1) the rental for the spare bedroom is regarded as rent - so you need to declare it and pay tax on it
2) you need to pay capital gains tax based on the area of bedroom and rest of the house - examples on ato site.
3) In many states you loose the full ppor land tax exemption - since the property is now earing income. In qld this is calculated once again on the % space rented out ...
I can not see any way to avoid these - i know people do and do not declare it but that does not make it correct.
Noel Whittaker had a similar articale in Queenslands Sunday Mail , Page 70 9/3/2008. He hints at this problem in a vague way. Specifically , he says ..
" Can you take in a border to help with rates , insurance and electricity??? If you do, be careful that the money they give you is treated as a contribution to household expenses and is not actual rent - otherwise you could find yourself loosing part of your capital gains tax exemption as you are carry on a business in part of your residence."
I can not really see how this could stand up to a tax office investigation ...?
Anyone care to comment ...
( For me its an interesting idea ... my household rates/insurance/electricity/gas would have to be at least $4000 a year )
You'd think buying plasma TVs on credit you cant afford would come under the 'bleeding obvious' umbrella.
Or living beyond your means in general for that matter. It seems common sense is not so common these days.
Or living beyond your means in general for that matter. It seems common sense is not so common these days.
This is the ATOs view on renting out rooms
Basically, the way I read it, is
- if you let out a room for less than commercial rates, then income is not taxed nor deductions allowed.
- otherwise it is taxable income and deductions apply, as I presume cgt...the exception are deals with family members for rooms, even at market rates.
- however, deductions allowed may be restricted to the amount collected in rent, rather than a % of actual interest, rates etc. How limiting the deductions in this way changes cgt treatment, I am unsure.
Basically, the way I read it, is
- if you let out a room for less than commercial rates, then income is not taxed nor deductions allowed.
- otherwise it is taxable income and deductions apply, as I presume cgt...the exception are deals with family members for rooms, even at market rates.
- however, deductions allowed may be restricted to the amount collected in rent, rather than a % of actual interest, rates etc. How limiting the deductions in this way changes cgt treatment, I am unsure.
