The Federal Budget was handed down last Tuesday, May 8, 2018. While the measures announced in the budget are yet to be passed by Parliament, we can generally assume that most of the announcements will become reality. From an individual perspective – especially if you do not grow illegal tobacco or participate in the black … Continue Reading
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
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
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
As any business owner knows, there are ways to express the cost of anything: before tax and after tax. And as any successful business owner knows, it is the after-tax cost that needs to be minimised. This is especially important when it comes to the interest you pay on your debt. Minimizing the real after … Continue Reading
Financial planners divide debt into two types: deductible debt and non-deductible debt. Deductible debt lets the borrower claim a tax deduction for the interest incurred on the debt. Non-deductible debt does not. Whether interest is deductible or not can have a massive impact on how expensive that debt actually is. When interest is not deductible, … 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
