Skip to main content

Posts

Showing posts from July, 2008

Negative gearing your property

Make Money from your property investments and reduce taxNegative gearingGearing basically means borrowing to invest. Negative gearing is when the costs of investing are higher than the return you achieve. With an investment property, thats when the annual net rental income is less than the loan interest plus the deductible expenses associated with maintaining the property (such as property management fees and repairs). When youre negatively geared you can deduct the costs of owning your investment property from your overall income reducing your tax bill. High-income earners benefit the most, because theyre in the top tax bracket.In addition, while you record a loss on the income from the property, in theory capital gains in the value of your property should make the investment worthwhile.But dont over-commit to property just to get a tax deduction. Those tax benefits generally don't come until the end of the financial year and you have to make your mortgage payments in the meantim…

Superannuation funds have record biggest ever annual loss

Superannuation funds have recorded their biggest ever annual loss since superannuation was made compulsory 26 years ago.Superannuation research group SuperRatings says the median super fund lost 6.4 per cent for the year to the end of June. Some super funds lost as much as 16 per cent. THIS DATA IS FROM NOV 2007 results - The high-performing Telstra Super Fund is the only non-industry fund among the finalists. Significantly, all but one of the industry funds on SuperRatings’ short-list for fund of the year is open to the public. These are AGEST, AustralianSuper, CARE, HESTA, HOSTPLUS, MTAA, REST and Sunsuper. On performance terms alone, industry funds dominate their retail rivals. In the 12 months to 30 September (the latest figures available), eight of the top 10 performers for their balanced portfolios were industry funds, according to SuperRatings, led by Catholic Super with 19.6% followed by MTAA Super with 19.1Telstra Super was the only corporate fund among the top 10 performers …

When will the bear market end ?

When Will This Bear Market End?By the time you read this, the bear market might already have ended.If it hasn't already ended, it might end tomorrow. It might end this month. It might end this year. It might end next year. It might end sometime after that. Bear markets are somewhat difficult to accurately define. We fully know their accepted definition is a fall of 20% or more from their peak. The Australian stock market peaked in November last year and is now down around 25%, making it officially a bear market. But it's not a bear market for large resources stocks.Yet it's an even bigger bear market for most banks, retailers and smaller companies. So although this is officially a bear market, it doesn't mean all stocks are falling, and it doesn't mean all stocks are falling by the same amount. As usual with stock market investing, it's a case of picking the winners and avoiding the losers. Proper Prior Planning Prevents Poor PerformanceHow Property se…

Proper Prior Planning Prevents Poor Performance

ProperPrior Planning  Prevents  Poor  PerformanceWhen the opportunities appear, will you be ready? Right now, it feels as though the market will never recover. We all know that’s not true. We’ve seen it before & so have you.If you don’t believe me, consider these wise words: “You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.” Peter Lynch - (Former) Fidelity Magellan Fund Manager and Author"The bad news, is we're in a bear market. The good news is it's almost over. Let's find stocks to buy."
Sir John Templeton during the 1987 stock market crash“Sentiment dominates at the moment. Sentiment is the herd. It is a very powerful beast. If you don't believe me....watch what it does when it turns.“ Marcus Padley – Stockbroker & author of Marcus Today, 10th July 2008So, even if you are not active in the market now, you need to understan…

How Property sector is looking for 2008 /2009

House prices are tipped to rise next financial year as Australia's fastest population growth in two decades outweighs the effect of higher interest rates, an economic forecaster says. House prices in Sydney will remain the highest in the nation."Australia is experiencing record net overseas migration flows which is underpinning what is already strong underlying demand for housing," the report said. BIS Shrapnel study author Angie Zigomanis said rising rents and improving credit conditions would cause house prices to increase in most capital cities. "As credit conditions recover over the course of 2009, we expect banks will gradually pass on lower borrowing rates to customers," Mr Zigomanis said. Perth's forecast median house price of $500,000 by June 2011 would be overtaken by Darwin's $515,000 as the Northern Territory capital was anticipated to enjoy 21 per cent house price growth during the next three years."This easing will enable house pri…

FREDDY MAC IS HOT FOR FANNY MAE, BUT WHill WILL INDY MAC go down with that ?

IF YOU WERE OBLIVIOUS TO THE  ECONOMIC  AND FINANCIAL NEWS  HAPPENING OVER THE WORLD RIGHT NOW . im sure  you would be wondering what is this all about is this a burger chain gone down...  For all its mighty worth ... these  huge banks  in the us  sound real funny with these sorta names.ALL IT TAKES IS A  "mac "  and a "fanny"  from the US of A  to bring down the world financial markets  and give everybody a hard time.Indy mac bank -official websiteLast week, a large California-based mortgage lender with loans of about $33 billion, IndyMac Bank, was placed under the regulatory control of the Federal Deposit Insurance Corporation after $1.35 billion in deposits was withdrawn in one month, a run that sent it to the wall. The lender resumed business yesterday under a new name, IndyMac Federal Bank, but the cost to American taxpayers of keeping the bank in business and avoiding any wider fallout will be substantial. About 10 per cent of the corporation's $55.2 bill…

capital gains tax and tax return 2008

Example:It's very close to 10-15% you get taxed on a longer term held sharesif you hold your investment for more than a year you get 50% CGT concession
say if you make 100K and hold it for 12 months and 1 day
you end up paytax on 50K on what ever tax bracket you on
mostly be 30% so that would be 15K 15K of 100K is 15%There are 3  ways to do capital gains for shares for your tax return 2008 , the easiest method  for shares is the  "the other method" . Basically you take all the Buys(shares) an minus it from the sells and if you get a profit then it is  the capital gain on  which you add  at 18 g on the txx return form if i remember rightThe "other method" is better explained hereExampleShares purchased and sold within 12 months In August 2007, Sonya bought 1,000 shares in Tulip Ltd for $1,500 (including broker’s fees) and sold them in June 2008 for $2,350. She paid $50 brokerage on the sale. A CGT event happens when Sonya makes the sale. As the capita…

First home saver Accounts

First Home Saver AccountsFirst Home Saver accounts are a new type of investment account designed to help Australians boost their savings for a deposit on their first home. This Government initiative will see super funds and banks being able to offer a superannuation style investment account that helps maximise savings through tax breaks and Government contributions. FACT SHEETS HEREOn 4 February 2008, the Government confirmed its 2007 federal election commitment to establish First Home Saver Accounts to assist Australians aged 18 and over to save for their first home.First Home Saver Accounts are the first of their kind in Australia and will provide a simple, tax effective way for Australians to save for their first home through a combination of Government contributions and low taxes.First Home Saver accounts will be concessionally taxed (like for superannuation), meaning that generally much lower tax will be paid on the investment or interest earnings of First Home Saver accounts, th…

India stock exchange - Top stocks for volatile times

One of the many reasons why every investor should read Wealth Insight is that apart from the extensive data, critical advice and expert insight that make up the magazine, we also try to put forth investment worthy ideas that can be evaluated and implemented by you - the investor. Last month, we told you about the stocks that fund managers bought when the markets were crashing; our analysis threw up nine tough stocks for a tough market. This time around, we'll tell you which stocks reported a smart recovery in the past two quarters. But first our modus operandi. We began with all the 6215 listed Indian companies.Out of these, we selected the top 1000 companies on the basis of market capitalization (30-days average, as on 14 May, 2008) and ran a query on 545 of them which had declared their fourth quarter numbers for FY2008. This list was further filtered to find those companies, which had been struggling since December 2006 but had staged a recovery a year later - December 2007 on…

Top Australian Margin lenders

ANZ Bank Margin Lending
Level 15, 100 Queen Street, Melbourne VIC 3000
Tel: 61 3 9273 5555  www.anz.comBT Margin Lending
Level 15, 2 Chifley Square, Sydney NSW 2000
Toll free: 1800 816 222 Fax: 61 2 9259 9800 www.btonline.com.auCitigroup Margin Lending
Level 20, Citigroup Centre, 2 Park Street, Sydney NSW 2000
Toll free: 1800 062 794 Fax: 61 2 8225 5400 www.marginlending.citigroup.com.auColonial Geared investments
Level 6, 120 Pitt Street, Sydney NSW 2000
Toll free: 1800 252 351 www.colonialgearedinvestment.com.auCommonwealth Securities
Level 6, 120 Pitt Street, Sydney NSW 2000
Toll free: 13 17 09 Fax: 61 2 8292 5200 www.commsec.com.auCygnet Capital Pty Limited
Level 10, 63 Exhibition Street, Melbourne VIC 3000
Tel: 61 3 9669 1900 Fax: 61 3 9669 1950 www.cygnetcapital.com.auEquity Margins Ltd
Level 39, 120 Collins Street, Melbourne VIC 3000
Toll free: 1800 674 569 www.equitymargins.com.auGoldman Sachs JBWere Margin Lending
Level 16, 101 Collins Street, Melbourne VIC 3000
Toll free: 180…

Rainmaker Itv Finance Channels

I was browsing the web the other day for " Craig james  _ chief Equities  Economist " and came across  this  cool website that has  some useful information  and views from some popluar econimists and finance commentators / editors. I was impressed by the way the website ) www.rainmakeritv.com made these videos and presentations  so easily available  for the general public to watch. The  are some good videos listed  for  finance related topics which i was interested in , but there are also other topics covered. They are all neatly listed in different channels  and are quite fast to load as well. I liked the way they also have the option to download them to your computer  as a pdf  , in audio format or straight to your ipod.A big thumbs up to --- > www.rainmakeritv.comThe content covers each of the five channel on Rainmaker iTV:Channel One: Showtime Channel Two: Learning and Development Channel Three: Conferences and Seminars Channel Four: Industry Profiles Channel Five…

Australian business confidence last month slumped to its weakest in seven years

Australia's business confidence index dropped to minus 9 points from minus 4 in May, according to a National Australia survey of 335 companies, as cooling domestic demand and spiraling raw-material costs eroded corporate profits. The rise in oil prices is trying to do what the credit crunch so far has failed to do, and that's tip the world into recession. So now you've got these two crises hitting at the same time.''S&P reduced Sydney-based GPT's credit rating one level to BBB, the second-lowest investment grade ranking, from BBB+, after the company cut its profit estimate by 27 percent GPT. Its shares slumped 11 percent to A$1.87, their lowest since 1984. Valad Property Group, another real estate investment trust, tumbled 14 percent to a record low 54 cents, while Mirvac Group lost 13 percent to a record low A$2.39 Nex Metals Exploration Ltd. (NME AU), an Australian metals explorer, rose 11 cents, or a record 41 percent, to 38 cents, after saying it conti…

Centennial Coal tumbles 14 per cent and Macarthur Coal down 7.7 per cent

A drop of about 10 per cent in the spot price of coal in the US, Europe and Australia was the catalyst for many sales and sent shares of Centennial Coal tumbling 14 per cent and Macarthur Coal down 7.7 per cent.MORE than $25 billion was wiped from Australian resources stocks yesterday as falling coal prices and concerns that record oil prices would begin to weigh on global growth started a rush for the exits."The big catalyst for declining resources was that over-the-counter coal price fell in a heap, sending most US coal stocks down," Macquarie Private Wealth associate director David Halliday said.
"You've seen falls in base metals and now in coal. It gets people thinking all these bubbles burst at some point." The S&P/ASX 200 materials index, largely made up of miners but including steel makers and chemical makers, finished the day down 6.1 per cent, losing more than $20 billion in value, and the energy index lost about $5 billion.

Agriculture Scheme stocks for tax savings TIM , MIS , GTP , FCL ,TFC

The sales results of the listed agricultural managed investment scheme (MIS) providers yesterday trickled in, which in the main were disappointing.Timbercorp (TIM) 80cGreat Southern (GTP) $2.89Futuris (FCL, $1.03)TFS Corp (TFC, $1.25)As predictable, cashed-up investors in past years have flocked to end-of-year agrischemes in a desperate bid to avert handing over money to the taxman.Not so this year. For a start, stock market investors don't have such a need to offset capital gains because they don't have any, while the taxman now frowns on non-timber schemes that rely on their fees being deductible upfront. Timbercorp disclosed $128 million of sales up to June 30, compared with $145 million previously. As a result of the tax crackdown, Timbercorp had only three schemes of offer in timber, olives and almonds, which had the imprimatur of a previous ATO private ruling. Buried deep in yesterday's announcement, Timbercorp also admitted full-year earnings for the year to Septem…