Questions & Answers - Investor

Thank you for your question.

Based on the general information you have supplied it appears likely that you may well have to pay capital gains tax.

However, without knowing the specifics of these transactions and your other financial obligations it is not possible to give you a definitive answer on this. The question you have asked is better asked of your accountant or financial advisor as any advice we give would be general only.

If you do not have a specialist that can help you in this area we would be happy to put you in touch with someone who could give you specific and professional advice.

Best wishes

Thank you for your question.

If you have a home loan you can still own and develop your own share portfolio. It is up to you how you manage your own finances and what strategy you have in how to pay off your home loan more quickly in comparison to using surplus funds to build an investment portfolio.

You obviously need to make the minimum monthly, fortnightly or weekly repayment on your home loan and if you can pay more than you will reduce your loan term and create greater equity into your property.

If by building a share portfolio and you are successful in obtaining dividends from your shares then you can use the dividends to pay into your home loan to reduce the loan balance and create further equity.

Best of luck with the share investment and paying off your home loan.

A real estate agent is not under any obligation to disclose any bids from other parties to you and vica versa.

However the real estate agent should advise all buyers that there are other interested parties and that your offer could be more or less then the other parties.

They don’t have to disclose figures as it is unfair to the other buyers.

In an auction though all offers are on the table on the day or night and all buyers get to know their competition.

Best of luck with the buying process

Great, to see you looking into buying an investment property - the property sector has proven itself to be a very solid performer over many years.

If you are looking to buy the investment property and have a stand alone loan on this property most home loan providers are looking for a minimum of 10% for a deposit and you need to allow around 5% for purchase costs (stamp duty, legals, loan fees etc).

On a property of say, $300,000 this means you need around $45,000.

If you have enough equity in your existing property then you might be able to use this equity as a deposit on the investment property. If your existing property is valued at $320,000, most providers will allow you to access up to 90% of the value to assist with the purchase.

This equates to $288,000, so if you owe $270,000 – it only leaves $18,000 available.

So based on the information you have provided us it is probably not enough to get you in to an investment property just yet.

Our advice is to spend the next 12 months trying to really accelerate the payments on your current mortgage so you can build up enough equity to start to build your property portfolio then.

Best of luck