The off topic thread 4.0

Cruyff14

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Delays aren't so bad, you can save more money.

If our apartment was meant to be ready when they said it was, there is no way we would have been able to afford it.

There are obvious pros over buying established, but we figured if we are gonna dump that much money into something, why not get it how we want it?
 

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SM

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Delays aren't so bad, you can save more money.

If our apartment was meant to be ready when they said it was, there is no way we would have been able to afford it.

There are obvious pros over buying established, but we figured if we are gonna dump that much money into something, why not get it how we want it?
Well sure if you're living rent free. :p

Guess your second point is my point, you got something build the way you wanted it and you're going to end up only living in it for 4-5 years.
 

Cruyff14

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Well sure if you're living rent free. :p

Guess your second point is my point, you got something build the way you wanted it and you're going to end up only living in it for 4-5 years.
Yeah, much less flexibility with apartments though compared to houses.

Our apartment was never gonna be a long term place to live. It's 7 squares, would really struggle with a kid in there lol
 

Zidane98

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Because, at the time we were living with my parents. Their house is not big, and we were pretty much confined to our room. It was taking a strain on our relationship.

We didn't want to rent, and needed to get out of there. We didn't have enough of a deposit to buy a house, so we thought we'd get an apartment. And buying an asset is never a bad thing. So we took the plunge and got our feet on the property ladder.

We want children in the next few years, so we are upsizing, and plan on being there for the next 20-30 years.

We will keep the apartment as a rental - provided we can get renters in there - and as long as we can afford it. And if we can't, we'll sell it. The great news for us is that my cousin wants to rent it from us for a few years, as we're in the zone for a very good school in the area, and her daughter will then be eligible.
Speak to an accountant about keeping your apartment as a rental. You are likely to undo any rental income you make on CGT when you sell down the track.
 

Fwoy

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Choppy, easily interfered with. A wall for example can turn a 4 bar connection into a 1 bar connection. Your fridge, microwave, everything can interfere with it and it's just slower than a wired connection. Always try and get a wired connection where possible..

Eg. I got one put in all my bedrooms, especially the kids as they will no doubt have computers when their older and cabled connection is going to be far superior than a wireless one, especially where my router is and where the bedrooms are. Smart TVs will all have a ethernet port, far superior for streaming etc, especially 4k.
Nothing a decent mesh coverage will fix. But if you have the chance to future proof, might as well go for it.
 

SM

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Speak to an accountant about keeping your apartment as a rental. You are likely to undo any rental income you make on CGT when you sell down the track.
CGT is 50% of profit isn't it? So you're still making the other 50% + the rental income...

EDIT: Shows how rusty I am, it's 50% of the profit gets added to your taxable income. So of that you're only getting taxed at 40% of the 50%.
 

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Zidane98

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CGT is 50% of profit isn't it? So you're still making the other 50% + the rental income...

EDIT: Shows how rusty I am, it's 50% of the profit gets added to your taxable income. So of that you're only getting taxed at 40% of the 50%.
If Cruyff sells within 6 months of moving into his new palatial residence he ends up paying 0 CGT on his apartment.

The longer he rents it for the bigger his CGT bill will be upon selling. You are correct in saying that only 50% of the CG is taxable.
 

SM

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If Cruyff sells within 6 months of moving into his new palatial residence he ends up paying 0 CGT on his apartment.

The longer he rents it for the bigger his CGT bill will be upon selling. You are correct in saying that only 50% of the CG is taxable.
What? It's bigger only dependent on its increase in capital value. You know, the C and the G of CGT. His rental income has nothing to do with that.
 

SM

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It also depends on how long the property was your principal place of residence.
No it doesn't.

Only in the sense you're exempt if you lived in it within a certain period of time before selling (think it's more than 6 months in the last year?)

If you hold it as an investment property for 5 years or 10 makes no difference.
 

SM

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Yeah I look, don't understand CGT or how it works.

If my cousin rents it from us it will be for at least 18 months - 2 years I'd imagine.
It's really not as complex as Zidane claims.

You own the property as an investment for more than 12 months, and 50% of the profit is taxable.

Simple as that.

So.. You still get 50% of the profit tax free. And you pay tax at your marginal rate.

So not really sure what Zidane is on about.
 

jd2010

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It's really not as complex as Zidane claims.

You own the property as an investment for more than 12 months, and 50% of the profit is taxable.

Simple as that.

So.. You still get 50% of the profit tax free. And you pay tax at your marginal rate.

So not really sure what Zidane is on about.
Yeah it's 50% on the capital gain, so if it's only held for a few years it's going to be a minimal amount
 

RPCB

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The Australia Men’s basketball team are into the World Cup Semi Final where they will face Spain. In the other one it is Argentina vs France. Exciting for them, hopefully they can go all the way and win it.
 

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