Hi all,
As useful as these forums are, I sometimes find conflicting answers and advice, which I think is naturally to be expected.
Very quickly, I converted my PPoR into an IP in April this year and am currently getting everything in order for the accountant. I've had a depreciation report done, converted the loan to IO, made sure Insurance was inplace for every aspect of owning an IP etc etc.
The only action I didn't take was to get a valuation done on the property. I've now just read that this important if I decide to sell down the track. I did get a local RE agent to give me a written quote (is it even worth the paper it's written on?).
my question is...what are the implications if I don't get this valuation done. Will the tax office arrive at a median price, based on historic data, if I do sell in say 10 years time to work out CGT?
And another little query I have is the way that Offset accounts are calculated. I've been led to believe that in a basic way they work like this. If you have a loan of 200k and 10k in an offset, then the interest on the loan is calculated at 190k.
But now I'm getting a whiff that they way it's calculated is that if the loan has an interest rate of 9%, then it's worked out on 9% of 10k = $900. That $900 is then deducted off the loan ie: $199, 900. Then the 9% is calculated on that figure. Is this correct?
Thanks sherm
As useful as these forums are, I sometimes find conflicting answers and advice, which I think is naturally to be expected.
Very quickly, I converted my PPoR into an IP in April this year and am currently getting everything in order for the accountant. I've had a depreciation report done, converted the loan to IO, made sure Insurance was inplace for every aspect of owning an IP etc etc.
The only action I didn't take was to get a valuation done on the property. I've now just read that this important if I decide to sell down the track. I did get a local RE agent to give me a written quote (is it even worth the paper it's written on?).
my question is...what are the implications if I don't get this valuation done. Will the tax office arrive at a median price, based on historic data, if I do sell in say 10 years time to work out CGT?
And another little query I have is the way that Offset accounts are calculated. I've been led to believe that in a basic way they work like this. If you have a loan of 200k and 10k in an offset, then the interest on the loan is calculated at 190k.
But now I'm getting a whiff that they way it's calculated is that if the loan has an interest rate of 9%, then it's worked out on 9% of 10k = $900. That $900 is then deducted off the loan ie: $199, 900. Then the 9% is calculated on that figure. Is this correct?
Thanks sherm
