I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.

This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio

@@hasede-lg9hj How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

Annette Marie Holt is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

The government already taxes gas and mining. That's where revenue comes from for aged pension, Centrelink,NDIS etc

​@@Craigaus adani owe billions to the federal government and mine/natural resources have very low tax rates. So, mines do not pay that much tax.

Tax was created for business owners and entrepreneurs.

Apparently if you pay 1 dollar a day on your mortgage you pay no compound interest, just the principle

and you wouldn't have a Job either that also pay taxes and support the economy...

Thanks for watching - That's a great addition! It highlights the flexibility within the 6-year rule on capital gains tax exemptions for principal residences.

Fact!

What if you rented it out for a couple years and moved into it afterwards?

Like if I rented out a place I own for two years and I move into it as my principal place of residence afterwards would that still apply?

How do you declare a new residence as well?

Certainly! It's truly inspiring to hear about your financial journey and the proactive steps you've taken to optimize your tax liability and grow your wealth. Your story surely serves as an encouragement to others that it's never too late to start investing and working towards financial freedom. Buying a home is a significant milestone, and doing so while also managing to create a stream of passive income is commendable. At Hunter Galloway, we share a similar ethos in aiding our clients to make sound financial decisions, making the home buying process as stress-free as possible, and assisting in turning their homeownership dreams into reality. Your experience is a testament to the power of strategic financial planning and investing, which aligns well with our mission of being the home for home buyers across Australia. Through diligent planning and leveraging various lending options across our panel of 30+ lenders, we aim to provide tailored mortgage solutions that cater to the unique financial situations of our clients. Thank you for sharing your inspiring journey, and we look forward to potentially assisting others on a similar path towards financial freedom and homeownership.

@ phyllisrichards5489 Investing typically demands a good understanding, and that's where having a financial consultant is invaluable. I've had the privilege of working with Regina Louise Collaro, an investment advisor affiliated with a licensed wealth management firm.

Her guidance has significantly enhanced my financial situation. She's widely recognized for her expertise, so you might have come across her name. With her support, I've attained financial security and now receive a steady monthly income through her successful passive income approach. I strongly advise considering an experienced investment advisor to boost your financial prospects.

Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online

personally, I'm blessed and realizing I'm not the only one working with Regina Louise Collaro. I will consider myself lucky. I've been able to feed and make a living through her advice and great work. For such a person as Regina, I owe her gratitude, support and endless prayers as it is not easy to gain access to such a competent and reliable adviser. Who isn't just wise but has all it takes to handle an investment and is good at what she does.

agreed! We pay our mortgages on after-tax income. We pay fees for buying and selling (stamp duty). We pay land usage taxes for the property we 'own' (rules vary by state) When we sell, they want a huge chunk of the profit!

@@crazyg74 Agree. With a devaluing dollar, it is not even profit. CGT is a tax on keeping up with inflation.

Not really as you can own more than one and sell it to anyone in the world. I would agree if it was the land is leased and rather remains in the public domain so to speak.

If the company owns the property, that means you don’t. So you’ll have to pay rent to the company and pay the investment company tax rate of 30% on the balance of net profits after tax adjustments. You also don’t have access to main residence exemption now because you don’t own it as per your example the company does, so when you sell you’ll have to pay capital gains tax within the company that owns it. Additionally, because the company owns it you will be exempt from the 50% CGT meaning on sale of the property you pay tax on 100% on the gain of sale. Also, travel expenses are non-deducible expenses for investment properties so you still will not be able to deduct it within the company, it will be added back on the tax reconciliation portion of the companies tax return. Also, the hire car income you’ll have to pay tax on in the company. The fact that you’ll have to pay accounting fees to do End of Year financials and tax returns for a company, trust and yourself as an individual will far outweigh you trying to deduct travel expense that are not deductible and now you have to pay CGT. I suggest getting advice from a tax accountant before buying property in a structure because everyone’s circumstances and strategies will be different and you have to weigh the cost/benefit analysis.

www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2023/part-a-about-capital-gains-tax/real-estate-and-main-residence#Continuing_main_residence_status_after_d

you've also earned 250k by renting out your own property. I think thats how it works? not sure

ponzi schemes abound in aus. This isn't even the only one. The boomers have positioned themselves in a spot where it becomes political suicide to undo these schemes.

Thanks for watching

Good question. I'll be waiting to see if anyone can answer that without spewing rubbish.

Glad it was helpful!

Thanks !

Before renting....12 months

When you're thinking about turning your property into an investment property, it's a good idea to get it valued right before you start the leasing process. If you're moving in with your girlfriend and her property isn’t in your name, it shouldnt affect things on your end. If you need advice on your loan check in with your broker and they can advise or hit us up we need a few more details to give advice on that - www.huntergalloway.com.au/

This is my question too did you get an answer? Would appreciate any answers

6 year rule doesn't apply, because it wasn't already your PPOR when you started renting it.

Yes

If it’s a furnished property there can be. But ovens and dishwashers are pretty standard.

Thanks

Thanks for watching 🙌

Keep in mind some states wave these for first home buyers but still a fair point! Thanks for watching.

yes, I'm increasingly becoming aware of that, as I plan my escape!

Thanks for sharing Panch

When we say that an expense is "fully deductible" for landlords, it means that the entire amount of that expense can be used to reduce their taxable income. This doesn't imply that they will get 100% of the expense back from the tax office. Rather, it reduces the total income on which they will be taxed. The actual financial benefit depends on the individual's tax rate. For example, if they fall into a 30% tax bracket, they effectively save 30% of the expense cost through reduced tax. This is an important distinction in understanding tax deductions.

This is what I assumed. It was wishful thinking on my part as I will be renting out my main residence as I am moving overseas. Now weighing up selling and getting a term deposit/investing money vs leasing out and benefiting from the asset appreciation that I expect will continue in the short while. Thanks for your wonderful and helpful content! @@MortgageBrokerAustralia

Yes, it's definitely possible to opt for an interest-only term during the first 12 months of your mortgage. This approach can offer some breathing room by lowering your monthly payments initially, as you'll only be covering the interest without reducing the principal balance. However, it's important to consider the long-term implications, as your payments will increase once the interest-only period ends and you start paying down the principal. If you're thinking about going this route, contact one of our brokers to discuss further.

Might be best speaking with your accountant on that as it's pretty specific advice. Thanks for watching

It resets. It's not accumulative. The government doesn't want anyone to get ahead, hence the ridiculous taxes they develop to stifle your wealth.

Congrats sounds like youre killing it! Keep it up and building that portfolio

@@MortgageBrokerAustraliaGreat advice on the 50% return on furnishing a B&B / home stay etc . Our latest investment in the Atherton Tablelands ( above Cairns ) we will live their for 3 months per year - Winter , With the Stamp duty I paid as it’s purchased as an investment ( can I apply to get 3 months worth back - when I live in it ? )

Thanks for watching and would be advisable to seek advise from a qualified accountant

Just state it was your intention to move straight in. I did it with mine, rented for 2.5 years and living in now for 4 years so far. When I sell no CGT. I can prove that When I bought the house it was my intention to move in as had spoken and gone through the process of selling the house i was living in, but due to change of work location after the first purchase I can show my intention was to move in straight away but unforeseen circumstances change. Also, how can they prove what your intention was, the burden of proof is on the Tax department

Thanks for the visit

Thanks so much Chris appreciate that !

More it can change the owner occupied cgt exemption. If unsure in your situation speak with your accountant to get specific advice. Thanks for watching.

@@MortgageBrokerAustralia thank you, good info for people trying to educate themselves to become more aware etc

Hey Luis that’s pretty specific I’d suggest speaking with your accountant to get advice on that or reach out to Nick directly website is in the description. Thanks for watching

Tha tax rules for your annual income tax return are Federal, ie they are Australia wide. They apply the same in each state

Think you mean New South WALES!

I'm not a tax expert, but I can provide some general information. In Australia, the tax implications of selling a property can vary depending on a range of factors, including whether it is your primary residence or an investment property, as well as any applicable tax laws in your state.

Haha yes indeed

Thanks Jacq

Yeah its possible, just check with your broker it wont affect your first home buyer concessions if you do this immediately after buying a home.

100%, thanks for sharing Jasmine

It mostly works on the capital works deduction in the 1st 40 years. And most houses are ancient. But that does make newer properties cheaper.

Thanks for watching

Not paying tax on loss-making investment is definitely legal, but not necessarily wise (especially if you need to use leverage to acquire the loss-making 'asset').

@@hannesRSA How does capital works deduction make newer properties cheaper?

@@uberboiz because the original cost of the building will be much higher on new properties. Maybe 50% of the purchase price, instead of an older house which might have cost only 20% of its current total value to build. So there is a larger capital deduction. Although I bought a property older than 40y after weighing up the benefits of larger land Vs new property with larger deductions.

Wealthy pay alot of taxes when they spend a $400000 car tax $180000 to import

Typical property spruiker talks....at best they are genuinely oblivious of the costs/expenses associated with their strategy, at worst they are deliberately misleading many aspiring property owners/investors to buy into the property market and make money out of the transactions.....

I think in this scenario they have assumed that you would be paying a mortgage on the home you live in. So when you got and rent a property (depending on where and what kind of property) you are essentially paying the rent INSTEAD of your mortgage. And somebody else pays the rent of your family home and any associated taxes. This does of course vary depending on what you own and where you rent though.

@@coopsnz1 that is why they buy expensive car and so they can afford it

You tenant pays you rent and it should cover or be similar to the rent you pay on your rental.