• The place to find the right expertise and make better decisions
  • Find the right expertise

About Me

Mark Wadia

Finance Broker
Manage My Mortgage
Nunawading, Victoria
0408 090 903

My Activity

Q: Hi just wanted to know about CPG tax when selling your primary residence.We have purchased a home in Qld which is rented out at the moment but will be available at the end of the year.If we move up into that residence and then rent out our current home in Vic do we have to pay CPG Tax on the Vic property when it comes to selling it?
We have heard that if we rent out both properties and find a place to rent in Qld then we can sell our current home in Vic before six years is up and not pay CPG Ta
A: Hi Daryl

Great question and you have a lot to consider. So the important thing to note is that you can only have 1 primary residence in Australia at anytime.

So you are right that when you move to Queensland and rent a property and rent out your properties in Victoria and Queensland you can claim a Capital Gains Tax (CGT) exemption for the Victorian property only for the lesser of 6 years or the time you don't have another property that is your primary residence.

If you decide to move into your Queensland property and rent out your Victorian property CGT will apply from the start of the period that you rent it out till when you sell it. So it is important that you get a property valuation to establish the market value at the start of the period when you rent it out.

It is important to remember that as long as your property is owned in individual names and you have hold it as an investment for longer than 12 months you should be eligible for a 50% discount on the capital gain made on the sale, on which the CGT is calculated at your marginal tax rate.

Please note that I am not an accountant or tax agent, but I am sure one of the accountants in here will provide some further clarification if required.

I guess the question I would ask is, do I want to be paying rent to someone else and paying for their property just to save some tax, when I can be using that money to pay off my own loans or contribute it to super if you do not have any loans.

Thank you Mark.
Q: Hi, my wife and I have committed to paying an additional $300.00 a week off our home loan this year. Are we better to pay $300 every Monday or set up a direct debit for the 1st of each month for $1200?
A: Hi Craig,

The answer is that is is definitely better to make regular payments more often. It reduces the principal amount when you make the payment every Monday, therefore there is less interest calculated on the outstanding principal for the rest of the month.

As well as that you will be paying back more principal; $300 x 52 = $15,600 compared to $1,200 x 12 =$14,400.

Also good to review your loan regularly to make sure that it is at a competitive interest rate.

Thank you Mark.
Q: I feel as though I’d like to move away from the big 4 banks and would like to know what is the best 2 and 3 year fixed rate on investment property?
A: Hi Shaun,

There are a number of lenders offering fixed interest rate for investment at around 4% with principal and interest repayments based on a loan amount of $250k. The interest rates for investment interest only repayments would increase to 4.3% and more.

Please let me know if you would like to meet with me to discuss further.

Thank you Mark.
Q: Hi
My husband is 63 and I am 61. We are both retired, my husband at 54/11 with a defined benefit superannuation pension. I retired at 59 due to if health. My portion of superannuation is approx. $100,000 and out financial advisor is suggestion we invest in La Trobe direct mortgage fund. I would then receive any interest earned paid to me each month.

What are your thoughts on this?

Sheree C
A: Hi Sheree

Any financial adviser would need to consider you personal risk profile to determine the most appropriate investment product for you. I am not a licensed financial adviser and cannot provide investment advice. I am a mortgage broker who is licensed to give credit advice only.

In my opinion, a mortgage fund like the one you mention above, would probably be considered a fit for a Growth to High Growth investor profile. The mortgage fund invests in a portfolio of La Trobe Financial mortgages. La Trobe Financial has been in the market as a lender for a long time and their mortgages generally target clients who are finding it difficult to find a mortgage with the banks.

I do not have any idea on you and your partners financial position, but I would suggest that given your age and superannuation balance you would more likely to fall into a Conservative, Moderate or Balanced risk profile. In which case, a fund that invests in a portfolio of fixed interest investments would be more suitable to those risk profile, provide less risk but as a trade off a lower return.

Hope that helps.
Q: The estate agents licensing authority has been abolished. What has it been replaced with?
A: Hi Nerka

In Victoria, Consumer Affairs Victoria is the responsible authority for licensing real estate agents.

Hope that helps.

Thanks Mark.