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Ah OK, I didn't know they no longer did it! We've just sold one property but will hang onto the offset account for when we buy another!

We have had a breakfree package for 4 years and have 3 offset accounts - the main ANZ one, plus two Home Loan Interest Savers, which have been linked to various loans at different times.

I've ended up selling one property (not the one I was referring to, as the CGT would've been a lot, but one which had gone up a fair bit but I hadn't owned for as long). Selling this will enable us to pay off the rest of our PPOR as well as own one IP outright, and the other only with a small...

Sorry it still doesn't make sense. Why would you want to continually rack up debts all your life? And what bank would continue lending to you? Eventually they want their money back.

This doesn't make any sense. Then you are just left with a bigger debt to pay off. It's the classic "living beyond your means". Eventually you have to pay it all back. The only way to do that is to sell the place, and then you'll incur CGT anyway.

Don't see why you'd need an accountant. Seems pretty straight forward to me. Don't forget you can use the much simpler method of claiming at the very generous rate of approx. 70-75c/km (depending on engine size) through the ATO for up to a maximum 5,000km per year. If you're not going to be...

That's correct, it's NET rental loss, so if you're positive geared the positive income gets added to your income, if you're negative, the net loss doesn't get deducted, but your rental income doesn't get added either in that case. eg.to use a more realistic example than the one given, one...

This is true, but the whole concept of a blue moon isn't an astronomical thing anyway, it's just an artifact of our calendar. The moon doesn't look any different!

Well I've done the sums and I don't think it would be worth it as it looks like I'll be up for around $40,000 CGT and my wife would lose family tax benefits for the year as well. So it looks like I'll be hanging on to it for a while. That CGT sure is a killer. Thanks everyone for your help.

It's done really well and I'm quite happy with the growth, but the rent is quite low, and there are high costs (body corporate, and water rates and usage as the flat is not individually metered). So I'm just thinking how that money could be better placed than tied up in something with such a low...

How would I work out what the value was in 2003? Do I need to use an average for properties of that type in the area?

That's quite true - if you calculate it on what I originally paid for it, net yield is around 8% - quite good but everyone says you have to consider opportunity cost, and it is supposedly worth nearly $300K but certainly not making my day-to-day life easier. I did borrow against it and bought...

2009 Second daughter born in June - most of the year revolved around that! Now 6 months old and almost crawling! Finished paying off the small PPOR mortgage we had to take out when we upgraded last year. 2010 Cope with life as a single income family. Put all spare cash into paying...

It's always been my own philosophy to never sell, too, but it's hard to reconcile the fact that I'm now getting about a 1% return after expenses on the current value of this place. I could sell up and net about $250K after paying off the small loan still on it, and put that in the bank at 6% or...

I'm thinking of selling my first IP because it's increased in value enormously and the rental return is absolutely rubbish at the moment. Just looking at capital gains tax, and it seems a bit complex. I originally bought the flat to live in in 1998, lived there for 5 years, bought a house...

Last bought 18 months ago. Not buying for some time now, will concentrate on putting every spare dollar into paying off the places I've already got, with a view to owning them outright in about 5 years.

I bought my house in Ringwood 10 years ago for under $200K, and it was a nicer place than that one. Sure it's got a good amount of land, but $623K for a block of land? Not within walking distance of a station, not in an activity centre, just in an ordinary suburban street 25km from the city. How...

Absolutely ridiculous. Who can afford these sort of prices? I've lived in Ringwood for 10 years and I don't think this is sustainable.

My place in the Latrobe Valley has water bills around $600pa. And that's only the statutory charges, not usage. I also have a flat in the suburbs where the units are not individually metered, so I'm required to pay for the tenant's usage as well as the standing costs. Water is not cheap!

Very small wheat/sheep town with a very old population. With the age of the population you'll probably keep tenants in the units, but I wouldn't bet on too much population growth for a while. Still, very good cashflow as long as the tenants can stay on.