Feeling nervous

Discussion in 'Investment Strategy' started by MissMel, 26th Mar, 2019.

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  1. Islay

    Islay Well-Known Member

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    that is true but I still believe as I said above @Brendon is correct. No capital gains on PPOR if less than 6 years.
     
  2. kierank

    kierank Well-Known Member

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  3. Brendon

    Brendon Well-Known Member

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    That doesn’t say anything about the 6 year rule where you can move out and rent your PPOR as long as you don’t buy another. That is the loophole I was thinking would be used.

    I’m sure there’s someone on here who can give us an exact answer
     
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  4. MissMel

    MissMel Well-Known Member

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    How would you go about advertising this?
     
  5. MissMel

    MissMel Well-Known Member

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    And this week I definitely plan to put a list together! Thank you so much
     
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  6. Angel

    Angel Well-Known Member

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    Airbnb? Hospital social workers I would think. But I dont know what the current method is. Probably ask someone at the hospital
     
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  7. kierank

    kierank Well-Known Member

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    I have already posted that one can do this.

    But that wasn’t the situation you posted in your earlier post:

    What I am saying is I don’t believe you can do this.
     
  8. Islay

    Islay Well-Known Member

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    Hopefully an accountant will chime in soon :) there will be a cgt liability if short term letting such as Airbnb. Not so sure if it is a long term rental with a lease and bond though
     
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  9. hammer

    hammer Well-Known Member

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    You're asking the right questions and taking on good advice.

    I reckon you're going to be just fine. :)
     
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  10. Depreciator

    Depreciator Well-Known Member

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    Universities have people who assist with accommodation, so hospitals would, too. I knew someone near a hospital in Sydney who had short term furnished accommodation that was used by hospital staff. I recall one regular visitor was a doctor who lived out of town but needed accommodation close to the hospital when on duty.
     
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  11. wylie

    wylie Moderator Staff Member

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    My comment about moving out and renting elsewhere and using the six year rule is my understanding of how this works.

    I believe this six year rule will not apply unless you move out and rent the whole house whilst you rent elsewhere.

    Someone will jump in to confirm.
     
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  12. Marg4000

    Marg4000 Well-Known Member

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    The 6 year exemption was designed for people who have to move temporarily for work. A person/family lives there, moves out for 1-6 years, moves back in.

    If you rent out part of your house, earn income from it (I.e, rent it as a movie location), use it for business purposes, then you DO incur a partial capital gains tax bill when you sell.
    Marg
     
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  13. Katie

    Katie Well-Known Member

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    Imagine if you bought in Sydney or Melbourne 5 or 6 years ago and rented in chermside everyone doesn’t like rent vesting I focussed on Brisbane to early got sucked into the Logan hype I never bought thank god.
     
  14. Jockosaurus

    Jockosaurus Well-Known Member

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    Hi Mel

    Picking up a few threads:

    > Do you have income protection insurance?

    Get this. You are very vulnerable on one income, and it is not expensive, especially if you can get it through your super fund. The Mrs and I never bothered when we both had jobs, but she should have signed up when I was made redundant. She was diagnosed with cancer soon after and it was a difficult few years financially (even apart form the emotion). Please learn from our mistake.

    > Domain tells me the place would rent for approx $425 per week
    > My ex accepted an offer to buy him out at 330K.

    I'm on the southside but don;t imagine the northside can be all that different. It's very hard to reconcile these two figures. Did the house get professionally valued at $660k?

    As others have said I'd hold on to the property at almost any cost. Rent it out entirely if you have to and rent somewhere yourself. You seemed to have your head screwed on so I am sure it will all work out. Don't get too caught up in short term thinking. Play the long game!

    cheers,
    Jockosaurus
     
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  15. chindonly

    chindonly Well-Known Member

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    I went through almost exactly the same thing many years ago, so I feel for you. Bought my wife out in the divorce, and things were very tight financially, and tough emotionally.

    Turned out to be a great decision. Every year, payments became that little bit easier, and that house became the backbone of a reasonable property portfolio.

    You will be fine. As long as you have a roof over your head, there are many ways to reduce excessive spending, or as others have said, make it an IP or rent a room / floor.

    Good luck with it all.
     
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  16. MissMel

    MissMel Well-Known Member

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    We had 5 different agents value the house. The average of the values was 660K. My ex would not negotiate any lower. I’m not sure how accurate Domain figures are, but $425 was much lower than I thought :( I will look into income protection this week. Thank you for taking the time to respond- really appreciate the advice.
     
  17. MissMel

    MissMel Well-Known Member

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    Thank you. Your story gives me hope!
     
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  18. MissMel

    MissMel Well-Known Member

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    Things I’m doing this week:

    Excel spreadsheet- expenses/repayments etc.
    Income protection.
    I-select- seeing what bills I can hopefully get down.
    Thinking one flatmate at this stage. A friend of a friend is looking in a month, and would be great as we work different hours.

    Again- thank you to everyone who took the time to respond.
     
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  19. chindonly

    chindonly Well-Known Member

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    And on top of that, a few years later I met the love of my life. We married and now have two great children - and life is great!
     
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  20. MissMel

    MissMel Well-Known Member

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    The rational part of me knows there’s others out there. The emotional side of me tells me it’ll never happen and can’t see how it’s possible :(
     
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