Australian Dollar

[MTR]

Good stuff MTR. Just one point though, you will be liable for Australian CGT if you sell those US assets, as an Australian tax resident. So yeah, more of a reason to hold on perhaps.

You pay 15% CGT in USA, however if I was to sell this would be credited back to me in Australia where I would then be paying Australian CGT.

If I eventually sell, this is just part of business, as a developer/trader in Australia I have to pay CGT every year at 30%, but it means I am making money and my third partner is ATO

 

[nomadic]

Good stuff MTR. Just one point though, you will be liable for Australian CGT if you sell those US assets, as an Australian tax resident. So yeah, more of a reason to hold on perhaps.

MTR could move and live o'seas for 6-12 months, become a non-resident and then sell without being liable for paying CGT in Oz.

Maybe it is and depending when the US lifts interest rates the Aussie Dollar will drop more..imho..

US are still having lots of problems with their economy and their rates could remain low for a long time

 

[MTR]

But I don't want to live in Atlanta.

Perhaps I should have been buying in Italy or Spain, much prefer to live here

 

[nomadic]

It doesn't matter where you live, as long as you don't live in Oz. You could move to Italy or Spain, become a non-resident and then you won't have to pay CGT in Oz if you sell because the income was derived from o'seas. Check with your accountant, some assets like shares are liable for CGT if you purchased them whilst being a resident and disposed of them as a non-res but there's ways around this.

The biggest advantage of being non-resident is you don't have to declare and pay tax on your US rental income to the ATO. So you could move to Italy for 1-2 yaers, become non-res and not not have to pay any income tax in Oz on your US property.

 

[sanj]

It doesn't matter where you live, as long as you don't live in Oz. You could move to Italy or Spain, become a non-resident and then you won't have to pay CGT in Oz if you sell because the income was derived from o'seas. Check with your accountant, some assets like shares are liable for CGT if you purchased them whilst being a resident and disposed of them as a non-res but there's ways around this.

The biggest advantage of being non-resident is you don't have to declare and pay tax on your US rental income to the ATO. So you could move to Italy for 1-2 yaers, become non-res and not not have to pay any income tax in Oz on your US property.

Being a non resident for tax purposes is a fair bit more complicated than simply living overseas for a while. if the ATO feels her intention is to return and it's just a temporary trip/pposting she will still be considered an australian resident while living overseas.

 

[nomadic]

It's not really complicated. I became non-res after I went for an 18 month holiday. I'm still a non res even though I intend to return to Oz. Being non-res sucks if you have a lot of rental income derived in Oz. I pay a flat 32% on my rental income, no tax free threshold. But non-res is good if you have property o'seas because you don't have to pay tax on the earnings or CGT if you sell for a profit.

 

[MTR]

NZ Dollar parity with Aussie dollar

Listening to news this morning, first time ever NZ dollar on parity with Au$.

Also, should the RBA cut the benchmark cash rate for the second time in three months we could see a breakout of recent ranges and moves toward and through support at 0.75

Interesting times ahead

 

[VYBerlinaV8]

I'm not convinced they'll cut today. They may, but I'm still thinking they'll wait as long as they can.

Still, they went earlier than I thought last time, so I guess I'm not really sure at all...

 

[willair]

I'm still thinking that the rates will stay the same , no matter what the media is telling everyone,and it won't be too long before we may see the reverse,it's happened every other time in every investment cycle iv'e invested throught

 

[willair]

http://www.abc.net.au/news/2015-04-07/reserve-bank-leaves-interest-rates-on-hold/6375240


Now watch the way the ASX will drop back all the morning gains..

 

[Blacky]

An interesting day in the markets.

Aud - GBP broke through the 2:1 mark and seems to be holding.

Aud - USD saw it recover any recent gains.

Tomorrow will be fun.

Blacky

 

[Ausprop]

Tomorrow will be fun.

Blacky

why? or is every day fun?

 

[Ausprop]

if the AUD collapses that could fuel a further spending spree in Sydney?

 

[Blacky]

is every day fun?

Yeah, pretty much... except for the ones which aren't.

if the AUD collapses that could fuel a further spending spree in Sydney?

Not sure about 'another' but may keep the fire stoked a little bit longer.
For anyone earning USD or GBP it certainly makes buying more attractive.

I am still buying/holding USD and GBP as I think they still have further falls to make. Though I did cash some in recently at just below the 2:1 mark as it hit my target price and allowed me to repay some debt.

Blacky

 

[Ausprop]

do you forsee gbp returning to 3:1? seem to be a few punters calling usd 60 by year end

 

[Blacky]

do you forsee gbp returning to 3:1?

In 2015? no. I think that is just too far to move. Beyond that? who knows... too many variable. If it happens though I will be the first to be celebrating!
I think it will be 'weak' for some time to come though.

I can see the USD with a .6 in front of it this year! Though Im not sure it will make it all the way down to .60

I am banking on two things for the remainder of this year.
1) US economy strengthening
2) AUD continuing its slide.

Im investing with cash which is relatively low risk. I would like to leverage into it, but don't have the knowledge to do so as yet.

Blacky

 

[MTR]

For a short period the Au$ almost bounced back to 80, now we are back to 75, I think we will see it trending down, how low who knows, seems like the experts think it will hit 72 sometime this year.

 

[Ausprop]

not hard to envisage the gbp heading to 2.5:1 tho in the short term, then trending toward 3:1 as the deficit blows out, rates slashed, economy falters

 

[ellejay]

not hard to envisage the gbp heading to 2.5:1 tho in the short term, then trending toward 3:1 as the deficit blows out, rates slashed, economy falters

I'll be rubbing my hands if we get to 3:1

 

[Ausprop]

I'll be rubbing my hands if we get to 3:1

why is that? do you export agricultural products there?