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Recording of webinar: property investors' classic mistakes

August 23, 2012

Please click on the image below to watch a recording of Tuesday night's webinar, Property investors' classic mistakes

Timestamp

Stuart Wemyss: 1:54 to 33:20

Monique Sasson Wakelin: 33:20 to 43:15

Questions: 43:15 - 61:00

The following participant questions were answered by the panellists:

No.

Question

Time stamp (mins:secs)

1

What are the taxation implications when selling a property that has been rented for 4 years but previously owner occupied 10 yrs

43:46

2

After buying one property in a SMSF, how easily can you buy the second? Can you leverage capital growth from the first property?

44:25

3

Please expand on the appropriateness of "line of credit" approach in light of the latest ATO ruling.

45:30

4

Given the flat property market in Melbourne, how long should you wait to determine whether to sell or hold onto a property?

47:28

5

To use equity in a property to purchase another property, do they both have to have the same ownership structure?

48:47

6

I have heard that once inflation hits 3% then interest rates will rise.  Interested in your thoughts

49:42

7

An investment holiday rental property in Port Douglas previously earning 4.5% pa has declined in value by about 30% in the last three years due to the high dollar reducing incoming tourists. Would you hang on to this property in the hope of the value rising again?

52:35

8

I have recently retired with four properties other than our home. In this situation I cannot offset property tax deductions against income other than rent and the properties are still cash flow negative. I am currently funding the shortfall using the account-based pension from my SMSF though my investment advisor has recommended selling one of the properties to reduce debt so that the three remaining properties become cash flow positive. Sounds sensible to me though we would forego the likely growth in equity over coming years. Is there any other strategy that is safe and sensible? The properties are all of high quality in inner Melbourne.

55:30

9

In regards to renting out a house you have lived in - I thought that you could rent out your principle residence for 6 years before being hit with CGT?

57:40

10

If you have redrawn on a loan for mixed purposes (i.e. deductible and non-deductible debt), what is the best way to correct this for tax purposes?

59:42