When you sell an investment that has increased in value, you will typically be subject to capital gains tax, or CGT. That said, there are certain assets that can be sold CGT-free. The CGT-free asset par excellence is the home. The concept of the home as a CGT free investment (and as a Centrelink free … Continue Reading
You have probably heard the term ‘positive gearing.’ It is a similar concept to negative gearing, which is certainly in the news a lot these days. We use the term ‘gearing’ whenever debt is used to fully or partly finance an investment. If you have $90,000 of your own and borrow $10,000 to buy an … Continue Reading
Positive gearing is the opposite of negative gearing. It is jargon for borrowing to buy an investment where the expected assessable income is more than the expected deductible interest cost (and other costs). Income is greater than expenses, and your assessable income increases accordingly. In the context of housing, if you borrow the full purchase price, … Continue Reading
As financial planners, helping our clients manage their family home is one of the most enjoyable things we do. We love family homes. For a start, we love families – and families live in family homes. What’s more, enjoying your home is the easiest way to enjoy life in general. A happy home – and … Continue Reading
Buying a family home is a unique purchase. While the fundamental elements of demand and supply will impact on the economic performance of a home, how much a person enjoys living in a home will vary according to their personal preferences. So, how do people determine their personal preferences? There are three common variables: location, features and … Continue Reading
Ahh, the Great Australian Dream! You have made the decision to make it come true, but where do you start? and more importantly How do you start? Let me start by making a comment regarding the Australian property market in general. In my opinion, the housing market in Australia and particularly in the capital cities … Continue Reading
So you have a mortgage and would like to pay it off as soon possible. Here are some of our tips to get you started on the journey of debt-free-ness Understand the difference between the minimum repayments, your actual repayments and the interest cost Many people seem to confuse the repayment amount to the actual … Continue Reading
